An official with the Bradford Sanitary Authority clarified that estimated future rate increases to its customers represent the worst-case scenarios.
At their meeting on Tuesday, the authority provided the projected increases, which would be due to Phase III of the rehabilitation of the wastewater treatment plant, a project with an estimated cost of $6,931,600.
“For the projected rate increases, we figured worst case scenario if BSA had to borrow funds for the full amount of the project,” authority treasurer Norm Strotman explained on Wednesday.
While the numbers the authority provided did not include grant funding, they may still be able to secure grant money, which would lower the rate increase.
“We did have a meeting with PENNVEST and they indicated that grant dollars are available, but it is based on different criteria such as income levels, current sewer rates, debt levels of BSA, need of the project, etc.
“All of this is scored and that is used to determine what BSA would be awarded in terms of grant vs. loan. It is the consensus of the board that we hope to get all grant money, but that may not be feasible,” he said.
The worst-case scenario rate increase projections are between $2.16 and $3.50 per year per user. Authority officials hope to have a better idea of what PENNVEST funding they qualify for in July.