The Lock Haven City Council convened on November 25, 2024, to discuss critical financial matters concerning the city's water fund and budget for the upcoming year. The meeting focused on the ongoing mediation process with the Pennsylvania Public Utility Commission (PUC) regarding a proposed rate increase for water services.

City officials reported that after several weeks of mediation, the city may settle for a rate increase approximately 42% lower than its initial request. This adjustment means that the city will not fully realize the anticipated revenue increase until June 2025, as the settlement will be prorated over the months leading up to that date. The mediation process involved various stakeholders, including consumer and small business advocates, who expressed concerns primarily about procedural matters rather than specific fee structures.

A significant point of discussion was the financial challenges facing the water fund. The city has a $500,000 loan from the general fund that was intended to balance the water fund budget last year. However, due to the delayed rate increase, the repayment of this loan will not commence until 2026, pushing financial obligations further into the future.

The preliminary budget for the water fund indicates substantial cuts, with no additional revenue expected. Notably, the budget for hydrant expenses has been drastically reduced to only $1,200, which will cover repairs but not replacements. This reduction is part of a broader $45 million infrastructure project that includes necessary upgrades to hydrants and related systems.

The council also noted that customer meter maintenance and line improvements have been significantly scaled back, with the budget for line improvements dropping to $35,000 from a previous $133,000. These cuts have left the water fund with a projected shortfall of $182,000 for the next fiscal year, which will impact the city's ability to maintain and improve its water infrastructure.

In conclusion, the meeting underscored the financial strain on Lock Haven's water fund and the implications of the delayed rate increase. The council will need to explore further options to address these budgetary challenges as they prepare for the upcoming fiscal year.