City of Bethlehem Department of Water and Sewer - 2024 Proposed Sewer Rate Increase and Fund Overview
Bethlehem's Sewer System, managed by the City's Department of Water and Sewer, includes a Wastewater Treatment Plant, collection systems, and agreements with tributary municipalities. Sewer billing is done directly for City and Hanover Township customers, with rates set by ordinance. Tributaries are charged a bulk rate based on cost apportionment, including an annual debt service contribution. The Sewer Fund history shows revenue and expenditure trends, with projected rate increases in specific years. The 2023 Sewer Rate Comparison highlights residential quarterly averages among various municipalities.
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City of Bethlehem Department of Water and Sewer Resources 2024 Proposed Sewer Rate Increase
Bethlehem Sewer System City owns, operates and maintains: Wastewater Treatment Plant Collection system inside City borders City operates and maintains: Hanover Township Northampton County (HTNC) collection system Owned by HTNC Under agreement since 1965 City collects and treats waste from 11 other tributary municipalities: Tributaries own and maintain their collection systems
Sewer Billing City bills inside City customers and HTNC customers directly Rates established by Ordinance under Article 927 Sewer Rental City charges bulk rate to the other tributary municipalities Agreements between City and various municipalities Bulk rate is based on overall cost to City for collection and treatment apportioned to the tributaries based on their flow Calculated by Director per Ordinance Tributaries bill their residents for sewer service
Sewer Billing Tributaries are also charged an annual debt service contribution to reimburse the City for the cost of borrowing for capital improvements to the City s collection and treatment system. Debt service is apportioned to the tributaries based on their sewage allocation per the City s Act 537 Plan. Total debt service payments for 2024 = $2,042,000 City = $1,151,000 (56%) Tributaries = $891,000 (44%)
Sewer Fund History Amounts are in thousands $20,000 $19,000 $18,000 $17,000 $16,000 Revenue Expenditure $15,000 2016-2022 revenues increased 22% (with 2 rate increases) 2016-2022 expenses increased 21% $14,000 $13,000 $12,000 2016 2017* 2018 2019 2020* 2021 2022 2023 2024* (projection) Indicates rate increase years 2017 10% 2020 8% 2024 8% (proposed) (projection)
2023 Sewer Rate Comparison Residential Quarterly Average - 14,000 Gallons $180.00 $160.00 $140.00 $120.00 $100.00 $80.00 $60.00 $40.00 $20.00 $0.00 S Whitehall Twp LCA-Allentown Capital Region Hellertown Macungie Emmaus BBA-Bath Borough Salisbury Twp Bethlehem Township Heights/Wynnewood Terrace City of Easton* BBA-Upper Nazareth Twp. Lower Saucon Borough of Slatington LCA-Upper Milford Twp/ Alburtis Borough Upper Saucon Twp City of Bethlehem - CURRENT Borough of Fountain Hill Borough of Freemansburg City of Bethlehem - PROPOSED LCA-Sand Springs/Heidelberg City of Lancaster Weisenberg 8%
Proposed Sewer Rates 8% increase in consumption and meter charge Typical Residential Customer @14,000 GPQ Year Consumption Charge Meter Charge Quarterly Bill Annual Bill 2020-2023 $3.255/kgal $28.71 $74.28 $297.12 2024 $3.515/kgal $31.08 $80.23 $320.92 Increase $5.95 $ 23.80
Projected Revenue 2023 2024 % Total City $10,199,915 $11,040,000 57% HTNC $ 1,852,226 $ 2,004,000 10% Other Tributaries (bulk rate and debt service) $ 3,974,897 $ 4,346,000 22% MIPP $ 1,705,000 $ 1,720,000 9% Misc $ 208,008 $ 400,000 2% Total: $17,940,046 $19,508,000 100%
10-Year Capital Plan $50 Million projected investment (2024-2033) WWTP repairs/replacements $20 Million WWTP enhancements (Act 537) $15 Million Collection system $10 Million Misc (equipment/vehicles) $ 5 Million
10-Year Capital Plan $50 Million projected investment $30 Million projected revenue Assume modest rate increases every 3-4 years to maintain NOI Assume $2M/year capital appropriation Cash balance (NOI) of $1M +/- per year $20 Million shortfall Bond issue (Last bond issue 2018) PennVest (last PennVest loan 2014) Loans increase debt burden
