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Council hears 2026 budget preview and water fund concerns including aging meters and filtration costs
Summary
Staff previewed the proposed 2026 budget and raised concerns about aging water meters, allocation of filtration-authority costs and a projected shortfall that will require trade-offs or alternative funding; council will review fuller budget details at the October meeting.
At its Sept. 22 meeting, Lock Haven City staff presented an early preview of the 2026 budget, focusing on the water fund and several large cost pressures that will affect next year's spending.
Staff said the major uncertainties include the yet-to-be-determined cost to supply untreated raw water to the Central/County filtration authority, ongoing wage and benefit estimates, and a set of aging meters on large accounts. The presentation noted 12 meters at one subservice (referred to as "first quality" in the presentation) with eight older than 20 years; citywide, some large meters are 43 and 39 years old. Staff estimated replacement-meter costs at roughly $106,000 (meter hardware only) and said installation estimates are pending procurement discussions with the city's engineering firm.
Staff described how a per-meter surcharge approved through a Public Utility Commission (PUC) action (roughly $9 per household per quarter in illustrative numbers discussed at the meeting) would be used to segregate revenue for debt service on past projects. City staff said the water fund currently shows limited unrestricted balance and that the filtration authority payment could be in the magnitude of hundreds of thousands of dollars (staff stated that the current remaining balance in the presented budget was about $151,000 and that treatment costs could be closer to $900,000), meaning the council will likely need to reallocate expenses, identify other revenue or use reserve/loan proceeds.
Staff noted the city had previously provided a loan to the water fund and that repayments with interest are scheduled to start next year, which will affect the fund's cash flow. Council members asked clarifying questions and staff scheduled a fuller budget discussion at the council's first October meeting, with the sewer fund review to follow the same month.
Several informational notices were also presented: state aid for pension plans received ($376,563.58), a pass-through payment to the Volunteer Fire Relief Association ($38,030.34) had been forwarded, and an application for remediation at 377 East Main Street had been filed (staff alerted council as a courtesy).
