Tuesday, May 3, 2016

LCA Water Rates To Rise

The Morning Call
"Lehigh County Authority not generating enough money to cover long-term wear-and-tear on infrastructure"

Although LCA is limited by a 2.5% yearly increase on Allentown's water rates there's a "but"... Isn't there always?

Exceptions can be made. The biggest one hanging over our heads is the EPA's order to fix the sewer overflows they first issued 7 years ago in 2009. It was suppose to be done by 2014. The EPA granted yet another extension, Face it, the repairs expected to cost hundreds of millions of dollars can't be dragged out forever. This is where the "but" comes in. The LCA can exceed the 2.5% cap on any project that cost more the $1 million in any given year.

The LCA currently is in a argument with Allentown over the method the city used to set sewer rates for those outside of the city. Figures which they say provided them with less revenue then expected. The authority feels it was misled. The thing could ultimately end up being settled in court.


Oh Yeah, Like Nobody Saw This Coming!
Myself along with other critics saw this as a way for the Allentown mayor to rearrange the deck chairs. The LCA gave Allentown just over $211 million in exchange for the 50 year lease. The money was to be used to help bail out Allentown's pension woes. The problem with free money is it's never really free.

Instead of the mayor breaking the bad news Allentown taxpayers would have to cough up more money, he got that monkey off his back by tossing it onto someone else's. The LCA in this case who'll look like the bad guys. Yeah well he might have kicked that can down the road, but now look where are. In the same damn fix.

It doesn't matter forced to open our wallets whether it goes towards taxes or water fees. A buck is still a buck. It benefited no one who's a citizen of Allentown. It might even be worse in my opinion. Had taxes been raised the money dollar for dollar would have gone directly towards pensions. Instead water users will have to help pay interest on the bonds borrowed by the LCA.

We're still going to end up paying million$ for the sewer overflow repairs whether the city still ran the water department or not. Difference is when Allentown still controlled the water department they could set the rates for the big fat commercial water users. That might have helped offset some of this. But no the city gave up that control when they granted the lease. Not too brilliant.

50 years is a long time. Between allowable repair fees being added and possible rate increases it would not be impossible to imagine one day individual water users end up paying 2 to 3 times what they do today. Again this is only my opinion, but it seems to me the mayor did a quick switcheroo hoping he'd be elected to higher office and blow town before the crap hit the fan leaving us holding the bag.


In my opinion there's been a whole lot of shenanigans going on around here. Although many kinds of things may be legal doesn't mean taxpayers' ignorance should be exploited.

Yet I'm certain many will still insist this was a good deal. So I'm not about to harbor any false illusions things will change. I'm sure many who walk among us would still gladly pay ten bucks to see the unicorns at this year's upcoming fair. If so I'd be more then happy to sell them tickets for only $5 with a free pair of rose colored eyeglasses for each ticket purchased.

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