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Council authorizes Penvest bid solicitation and agrees to explore a joint municipal water authority
Summary
With Penvest funding in place, the city authorized solicitation of bids for Phase 1 construction and discussed long-term water-fund governance; staff recommended exploring a joint municipal authority with neighboring townships to share governance and rate-setting and council voted to pursue discussions.
City staff reported that the Penvest-funded Phase 1 project has received DEP permits and that Penvest funding is in place. The city engineer explained that as borrowing proceeds, water fund expenditures (excluding debt service) are projected to grow by about $100,000 per year and cited existing debt instruments that affect upcoming years’ budgets. He said Penvest funds are disbursed by reimbursement, requiring interim financing when invoices arrive.
The engineer described possible customer impacts—an increase in per-gallon charges described in the presentation as moving from roughly "61 thousandths of a penny per gallon to 65 thousandths," reaching about a penny per gallon by 2027 in the projection—and warned that larger rate adjustments historically require Public Utility Commission (PUC) engagement because the city serves customers in neighboring townships.
To provide customer representation and a governance structure that could set incremental rates without costly repeated PUC filings, the engineer proposed exploring creation of a joint municipal authority that would include the city and served municipalities (Wayne and Castaneda were discussed; Allison was mentioned as a small customer base being evaluated). Council voted to authorize staff to solicit bids for the Penvest-funded Phase 1 construction project and to initiate discussions with neighboring municipalities about forming a joint municipal authority; the vote was approved by council.
Council stressed that an affirmative vote to explore the authority does not bind partnering municipalities or guarantee formation; staff will contact township supervisors, direct the city authority to draft initial documents, and return options for future council consideration.
