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Public works warns of sharp water and sewer cost increases; council hears funding concerns
Summary
Public works staff reported projections of major water and sewer cost increases in coming years and urged council attention to long-term infrastructure funding during the Feb. 18, 2025 meeting.
During the Feb. 18, 2025 meeting, public works staff briefed the council on water and sewer funding concerns and projections for substantial rate increases in the coming years.
Staff reported that models show a very large projected increase — described in the meeting as roughly a 90% increase in certain costs over the next three years, based on what staff called the LCAAR model. Staff said communities using the same model are expected to feel similar fiscal pressure and that the borough will need to consider a multi-year funding approach.
Staff characterized the challenge as substantial and described potential projects that could total tens or hundreds of millions depending on the scope: “The other problem is if the budget so payment might be this. It's a hundred million. It could be a hundred of them,” staff said in the transcript when discussing large-scale project scenarios. Staff also referred to litigation and longer-term legal issues tied to some infrastructure programs and said those issues could affect project timing and costs.
Council members and staff discussed that the borough had begun to replenish reserve accounts and that the next meeting will include further discussion of funding timelines and potential budget impacts. Staff emphasized that more detailed work and further meetings will be needed to identify revenue sources and phasing to match projected costs.
No formal council action on rate changes or financing measures was taken in the segment provided; the item was a briefing and early warning for council consideration.
