2021 LCWSA Adopted Budget

 

   

 

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2021 ANNUAL BUDGET AND RATES

 

LYCOMING COUNTY WATER, SEWER, AND STORMWATER AUTHORITY adopted its 2021 Budget and set rates for the 2021 calendar year at its meeting on December 2, 2020.

 

With so much uncertainty remaining in 2020 and into 2021 resulting from the COVID-19 pandemic, the LCWSA budget process has been difficult and challenging.  The 2021 Budget defers or minimizes rate increases to the extent possible, continues with tight controls on expenses, and prioritizes planned capital projects due to expected mandates, limitations, and restrictions due to COVID-19.

 

The 2021 Budget has been prepared with a focus on fiscal accountability, business continuity, customer sensitivity, and environmental responsibility. 

 

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For the Armstrong Sewer System, no rate increase is for 2021. The current sewer rate is $70 monthly per Equivalent Dwelling Unit (EDU).  An EDU refers to an Equivalent Dwelling Unit where a single EDU would be a single-family dwelling unit.  With a limited customer base of only 91 EDUs, the Armstrong Sewer System must sustain operating and capital costs for the collection system together with treatment services through Williamsport Sanitary Authority and conveyance through the Borough of South Williamsport. 

 

For the Beaver Lake Sewer System, no rate increase is for 2021.  The current rates are $161/EDU/month (dwellings) and $50 per month for unimproved lots.   The Authority’s continued partnership with Penn Township to assist in funding capital projects for the sewer system will assist in meeting compliance, maintaining the system for reliability, and planning for future improvements. 

 

For the Limestone Water System, no change to the water rate structure in 2021.   LCWSA recognizes the need to continue to address aging infrastructure and unaccounted for water losses.   A comprehensive watermain replacement project is being considered with funding being sought to offset costs for this effort to help control rate increases.  Individual water leaks continue to be addressed expeditiously when found both on the public system and on the private property side. 

 

For the Mifflin Manor Sewer System, there will be a sewer rate increase in 2021 of $8 per EDU per month – with the rate increasing to $138 per month per EDU.  Due to ongoing deficits and escalating costs, a portion of the increase addresses budget deficits and a portion addresses a capital set aside for major replacements of the aging infrastructure.  As the asset management plan develops, funding will be sought to support and offset costs for necessary infrastructure improvements.   The need to respond to budget deficits and capital funding is essential as the system has only 34 customers.

 

For the Montoursville Regional Sewer System (MRSS), no rate increase for 2021.  The current sewer rate is $70 per Equivalent Dwelling Unit (EDU).   With growth occurring in the eastern end of the service territory, LCWSA continues to monitor the potential economic development that may occur over the next few years.  Although additional capital is needed, funding from prior years’ bond refinancing is allocated to support ongoing and necessary capital expenditures.

 

For the LCWSA Regional Water System, there is an increase in 2021 for the consumption rate only.  The consumption rate will increase from $10.50 per 1,000 gallons to $11.00 per 1,000 gallons – a 4.7% increase in consumption charges, which equates to an increase of $1.00 monthly or $12 annually for a typical residential customer using 2,000 gallons of water per month.  With over a $40,000 loss projected in 2020 due to decreased usage, business closures due to COVID, and little growth, a rate increase is necessary.  The 2021 revenue projections remain conservative due to anticipated COVID impacts in water usage.  LCWSA continues to monitor the potential economic development occurring in the service area, and will continue to explore the options of a mandatory connection ordinance once the regulatory permitting of the systems’ sources is completed.    

 

For the Stormwater Management Program (SMP), the Stormwater fees in 2021 will no longer include the COVID Credit (50% reduction), and the fees will return, as planned, to the rate structure necessary to cover the costs required of the program.   The challenges with COVID-19 forced a reprioritization of tasks and projects to align with the reduction in revenue in the year 2020.  With no relief on MS4 permit requirements and no extension given for implementation of Chesapeake Bay pollution reductions, the stormwater program continues to move forward to avoid unnecessary penalties and violations.

 

The stormwater fee is applicable to all properties in the Boroughs of Duboistown and South Williamsport regardless of tax-exempt or non-profit status.  The stormwater user fee structure is a 5-Tier schedule, based on the impervious area of each parcels - with the basis of 2,480 square feet (SF) of impervious area representing 1.0 Impervious Area Unit (IAU).  The challenges of unfunded federal and state mandates have changed the way the Boroughs are managing stormwater and has resulted in a beneficial partnership for a fiscally responsible approach to these regulations. 

 

Rate District:          Borough of South Williamsport - $10.00 per IAU per month

Rate District:          Borough of Duboistown - $15.00 per IAU per month

 

2021 LCWSA Budget:

The comprehensive budget process utilized by LCWSA provides a long-term approach to better manage the ups and downs of the business.  This has proved advantageous in 2020 and in preparing for 2021!  Budgeting on a five-year basis in conjunction with personnel planning, capital planning, and strategic planning has been beneficial in understanding the challenges that are faced by our organization not only year-to-year but also a longer planning horizon.  Capital Planning is integral to our budget process and used to avoid emergency repairs and major unplanned expenditures.  We remain hopeful for a more positive economic outlook for our core service territory but are also realistic that COVID will continue to impact our business and our revenue in 2021.

 

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Adopted 2021 Water, Sewer, and Stormwater Rates are listed by operating system.

 

 

 

 

 

2021 SEWER RATES –ARMSTRONG

 

Service Area

User Rate per EDU per Month

Armstrong

$70.00

 

Prepay Discounts – Armstrong Sewer

The prepay discount is 3% for customers pre-paying twelve months in advance with payment received by January 20th.  Past due balances must be paid in full before a customer can take advantage of the prepay discount for the 2020 calendar year.

 

Billing Cycle

Sewer customers will be billed monthly with payment due by the 20th of each month.  

 

Late Fees/Penalty

As part of the Authority’s rate structure, a one-time penalty of ten percent or a carrying charge on the outstanding balance of 1½ percent per month shall be added, whichever is greater.  The late penalty will be applied to an account on which the payment has been received after the twentieth (20th) of the month for which the service is rendered.

 

 

2021 SEWER RATES - BEAVER LAKE

 

Service Area

User Rate per EDU per Month

EDU (Dwelling or Home)

$161.00

Undeveloped Lot

$50.00

 

Prepay Discounts – Beaver Lake Sewer

The prepay discount is 3% for customers pre-paying twelve months in advance with payment received by January 20th.  Past due balances must be paid in full before a customer can take advantage of the prepay discount for the 2021 calendar year.

 

Billing Cycle

Sewer customers will be billed monthly with payment due by the 20th of each month.  

 

Late Fees/Penalty

As part of the Authority’s rate structure, a one-time penalty of five percent or a carrying charge on the outstanding balance of 1½ percent per month shall be added, whichever is greater.  The late penalty will be applied to an account on which the payment has been received after the twentieth (20th) of the month for which the service is rendered.

 

 

2021 SEWER RATES – MIFFLIN MANOR

 

Service Area

User Rate per EDU per Month

Mifflin Manor

$138.00

Prepay Discounts – Mifflin Manor Sewer

The prepay discount is 3% for customers pre-paying twelve months in advance with payment received by January 20th.  Past due balances must be paid in full before a customer can take advantage of the prepay discount for the 2021 calendar year.

 

Billing Cycle

Sewer customers will be billed monthly with payment due by the 20th of each month.  

 

Late Fees/Penalty

As part of the Authority’s rate structure, a one-time penalty of ten percent or a carrying charge on the outstanding balance of 1½ percent per month shall be added, whichever is greater.  The late penalty will be applied to an account on which the payment has been received after the twentieth (20th) of the month for which the service is rendered.

 

 

2021 SEWER RATES – MRSS

 

Service Area

User Rate per EDU per Month

MRSS –

Montoursville, Fairfield, Halls Station (includes portions of Muncy and Muncy Creek Townships)

$70.00

 

Prepay Discounts – MRSS Sewer

The prepay discount is 3% for customers pre-paying twelve months in advance with payment received by January 20th.  Past due balances must be paid in full before a customer can take advantage of the prepay discount for the 2021 calendar year.

 

Billing Cycle

Sewer customers will be billed monthly with payment due by the 20th of each month.  

 

Late Fees/Penalty

As part of the Authority’s rate structure, a one-time penalty of ten percent or a carrying charge on the outstanding balance of 1½ percent per month shall be added, whichever is greater.  The late penalty will be applied to an account on which the payment has been received after the twentieth (20th) of the month for which the service is rendered.

 

 

2021 WATER RATES –LIMESTONE WATER

Rate Schedule – based on consumption

 

0 to 5,000 gallons (base rate)              $150.00

5,001 to 20,000 gallons                       $7.25 per 1,000 gallons

20,001 to 40,000 gallons                     $7.50 per 1,000 gallons

40,001 to 100,000 gallons                   $7.75 per 1,000 gallons

100,001 to 200,000 gallons                 $8.25 per 1,000 gallons

Over 200,000 gallons                          $8.75 per 1,000 gallons

 

Billing Cycle

Water customers will be billed per the rate schedule noted above and invoiced on a quarterly basis.

 

 

Late Fees/Penalty

As part of the Authority’s rate structure, a one-time penalty of ten percent or a carrying charge on the outstanding balance of 1½ percent per month shall be added, whichever is greater.  Bills will be sent for the previous period’s consumption and related charges.  Payment of entire invoiced amount is required within 20 days from the statement date.

 

 

2021 WATER RATES –LCWSA REGIONAL WATER

 

LCWSA Regional Water customers are billed for consumption, fixed meter charges, and if applicable, fire protection charges.

 

Metered Consumptive Water Charge

The proposed rate for 2021 is for all metered water customers to pay a consumptive rate of $11.00/1,000 gallons.

 

SCHEDULE A – Consumptive Rate $11.00 per thousand

 

Base Customer Charge Based on Meter Size

In addition to the increase in the consumptive charge, metered water customers will be charged a FIXED CUSTOMER CHARGE for 2021 based on meter size per Schedule B below. There is no increase proposed for 2021:

 

BASE CUSTOMER CHARGE BASED ON METER SIZE

SCHEDULE B –METER CHARGE

 

Meter Size

Size Ratio (AWWA Std)

Monthly

Quarterly

Annual

5/8"

1

 $     20.00

 $     60.00

 $     240.00

3/4"

1.5

 $     30.00

 $     90.00

 $     360.00

1"

2.5

 $     50.00

 $    150.00

 $     600.00

1 1/2"

5

 $   100.00

 $    300.00

 $  1,200.00

2"

8

 $   160.00

 $    480.00

 $  1,920.00

 

Fire Protection Charges

The Fire Protection Charge is applicable to all customers who have water service provided for sprinkler systems, dedicated fire protection lines, and/or dedicated hose connections for fire protection.  There is no increase proposed for 2021 for these customers based on Schedule C below.

 

No separate charge shall be made for water used in the extinguishing of accidental fires.  Water for any other purpose, other than scheduled fire protection system testing or fire extinguishing, shall not be drawn through a private fire service connection.

SCHEDULE C – Fire Protection Charge

 

Line Size

Size Ratio (based on cross section)

Monthly

Quarterly

Annual

6"

1

 $   220.00

 $    660.00

 $  2,640.00

8"

1.78

 $   391.60

 $ 1,174.80

 $  4,699.20

10"

2.78

 $   611.60

 $ 1,834.80

 $  7,339.20

12"

4

 $   880.00

 $ 2,640.00

 $10,560.00

 

Fire protection charges for additional sizes are available and can be provided.  Typical sizes are shown above.

 

Billing Cycle

Regional Water customers will be billed for consumption, fixed meter charges, and if applicable, fire protection charges on a monthly basis.

 

Late Fees/Penalty

As part of the Authority’s rate structure, a one-time penalty of ten percent or a carrying charge on the outstanding balance of 1½ percent per month shall be added, whichever is greater.  Bills will be sent for the previous period’s consumption and related charges.  Payment of entire invoiced amount is required within 20 days from the statement date.

 

Shared Fire Protection Charges

Where fire protection lines are shared by multiple users, the Authority will allow the proration of the fire protection fee based on square footage.  The proration shall be rounded up to the nearest $5.00 increment as is appropriate for like size spaces.  Each situation may be evaluated to group like-size spaces.  The fees for the combined total of the shared users shall always be equal to or rounded above the charges set forth in the Authority’s 2021 Rate Resolution.

 

 

2021 STORMWATER RATES

 

For the purposes of calculating the SMP User Fee, the basis of the IAU is 2,480 square feet (SF) in both Rate Districts.   SMP User Fees in both Rate Districts will be billed at 0.5 increments where the IAU is rounded up to 0.5.

BOROUGH OF SOUTH WILLIAMSPORT

 

Tier

Tier Impervious Area (IA) Range in Square Feet (SF)

IAU (Impervious Area Unit or billing units)

SMP Fee per month – South Williamsport

 

0

0-399

No Charge (de minimis)

No Fee

 

1

400 - 1,599

0.5

$5.00

 

2

1,600 - 3,399

1

$10.00

 

3

3,400 - 4,199

1.5

$15.00

 

4

4,200 - 5,999

2

$20.00

 

5

6,000 and greater

2.5 or greater - Calculated where 1 IAU = 2,480 SF

(IA/2,480 SF) X $10.00

 

 
     

BOROUGH OF DUBOISTOWN

Tier

Tier Impervious Area (IA) Range in Square Feet (SF)

IAU (Impervious Area Unit or billing units)

SMP Fee per month - Duboistown

0

0-399

No Charge (de minimis)

No Fee

1

400 - 1,599

0.5

$7.50

2

1,600 - 3,399

1

$15.00

3

3,400 - 4,199

1.5

$22.50

4

4,200 - 5,999

2

$30.00

5

6,000 and greater

2.5 or greater - Calculated where 1 IAU = 2,480 SF

(IA/2,480 SF) X $15.00

 

Prepay Discounts – Stormwater

The prepay discount is 5% for customers pre-paying twelve months in advance with payment received by January 20th.  Past due balances must be paid in full on the account (or for combined sewer and stormwater bills, both sewer and stormwater must be current) before a customer can take advantage of the Stormwater Prepay Discount for the 2021 calendar year.

 

The Stormwater Prepay Discount is consistent with the full-year prepay discount offered by our Stormwater Partners (the Borough of Duboistown and Borough of South Williamsport) to their sewer customers.

 

Billing Cycle

Customers will be billed monthly with payment due by the 20th of each month.  

 

Late Fees/Penalty

As part of the Authority’s rate structure, a one-time penalty of ten percent or a carrying charge on the outstanding balance of 1½ percent per month shall be added, whichever is greater.  The late penalty will be applied to an account on which the payment has been received after the twentieth (20th) of the month for which the service is rendered.

 

 

2021 LCWSA Budget

 

Budgeting is a process that involves a number of key financial, operational, and organizational factors over periods of years--not a year-to-year approach.   The 2021 LCWSA Budget is just over $6.1M for all activities of the organization.  The Authority adopts not only a budget, but a business plan which includes the five-year financial plan, a personnel plan, a strategic plan, and a capital plan.  This process is necessary as we manage multiple systems and are accountable to our customers and partners.

 

The Authority adopted its 2021 Budget at its meeting on December 2, 2020 at 6:00 PM.

 

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LCWSA offers innovative regional and shared services to achieve compliance with water, stormwater, and wastewater regulations by providing practical, sustainable, cost effective solutions through education, operation, maintenance, technical support, and management services.  LCWSA provides an array of services – offering a variety of alternatives - in response to requests for assistance.

 

Serving 10 sewer, water, and stormwater systems in 12 municipalities throughout Lycoming County and reaching over 8,500 individual customers in varying capacities.