Altoona introduces ordinance to guarantee $6.75 million PENNVEST loan for sewer screen replacement

The Altoona City Council on Monday heard a presentation from the Altoona Water Authority on failing combined sewer overflow (CSO) bar screens and introduced an ordinance authorizing the city to guarantee a $6,750,000 PENNVEST loan to replace the equipment.

The presentation was led by Brad Kelly, director of wastewater operations for the Altoona Water Authority, who said the bar screens were installed in 1989 and “have reached their useful life.” Kelly said the CSO facilities include more than 1 million gallons of underground storage and that the plants collect an average of about 25 tons of debris per year. He described newer “FlexRite” screens as having no sprockets or mechanical parts below grade, which reduces maintenance risks and the need for below‑grade work.

City bond counsel and staff described the financing terms and legal mechanics. The loan, arranged through PENNVEST, is a long‑term, low‑interest financing: a construction period fixed rate of about 1 percent (roughly one year of construction/initial period), then a fixed rate of about 1.743 percent for the remaining 15 years, according to remarks at the meeting. Counsel said the city is the titled owner of the sewer system and typically pledges lease revenues under the existing lease to the authority; as a backstop the city’s full faith, credit and taxing power would be pledged if pledged sewer revenues proved insufficient.

Attorney Jens Damgard and another municipal attorney summarized why the city’s guarantee is requested: the Altoona Water Authority operates and sets rates for the system under lease from the city, and PENNVEST required a municipal guarantee as part of the financing package. Damgard said the loan request is for replacement of aging bar screens and to pay related expenses.

Council members did not vote on final adoption of the ordinance at the meeting; the ordinance was introduced for council consideration. No final loan closing or disbursement was recorded in the minutes; staff described the next steps as completion of required paperwork, submission of a self‑liquidating debt report and continued coordination between the authority and the city.

Council and staff noted operational problems that motivated the project: manufacturer discontinuation of parts for the existing screens, long lead times for fabricated parts (up to six months), and state violations tied to inoperative screening equipment. Kelly said these issues sometimes force in‑house fabrication or local shop work and impair continuous operation.

The council packet and the ordinance text referenced PENNVEST financing and provisions in the Pennsylvania Local Government Unit Debt Act; further details, including a final guarantee agreement and any required budget actions if a shortfall occurs, will appear in subsequent city documents if council approves the ordinance in a later vote.