The Kiski Valley Water Pollution Control Authority is raising its rates to help pay for $11.5 million in system improvements.
The average household that uses 10,000 gallons of water per quarter will pay a total bill of $87.50, about 6.4% higher than the current $82.22, starting with January’s bill.
Officials said the increase is needed to help pay for $11.5 million in new projects. Officials said the projects will be largely paid for with a $7.2 million windfall from refinancing a long-term bond.
Because of low interest rates, the sewage authority is refinancing the original bond of $37.2 million for the major plant upgrades that began in 2010. They will receive about $7.2 million for refinancing that bond at a lower interest rate, said Dennis Duryea, plant manager.
The authority will borrow an extra $3.4 million to pay for future projects, bringing the total of the new bond to $40.6 million, he said. Specifics on interest rates and terms were not available as the transaction is not yet complete, according to Duryea.
The board voted unanimously Wednesday to refinance its long-term debt and raise rates to pay for new projects totaling $11.5 million.
“It’s another upgrade to the system, making it good for another 30 to 40 years,” said.
The money will pay for an $8.2 million upgrade of eight sewage pump stations located in eight of the 13 Kiski Valley communities that the authority serves. Those pump stations were 45 years old and costing more to maintain as they are nearing the end of their life, Duryea said.
The authority will also pay for a $3.3 million project to increase the capacity for the Pine Run interceptor for future use and development. The Pine Run interceptor receives wastewater from numerous lines and is located in Allegheny Township, serving residents in Washington and Allegheny townships.
The authority had plans for the pump station upgrade for several years and was waiting for the right time, Duryea said.
“We can get the money at such a good rate, and we were fortunate to get this deal,” he said.
