WEIGH SCALES - The federally mandated expansion of the sewer plant has caused the operating budget of the Shamokin-Coal Township Joint Sewer Authority to rise 28 percent.
Authority members voted Wednesday to adopt a $6,016,294 balanced budget for 2012-13, far above the current year's $4,333,073 budget.
The majority of the increases in both revenue and expenditures are associated with the sewer plant project, construction for which is slated to begin next week.
The authority will take in 34 percent more revenue in consumer payments - from $3,863,700 to $5,859,244 - but that's offset by a 42 percent hike in financing expenses to complete the project -
$1,988,713 to $3,424,871.
When the authority voted last fall to raise customer rates from $30 to $49.50, it was said approximately $30 of each customer's bill would be used to offset debt on the $37 million project.
Administrative and operating expenses saw only slight increases.
What hasn't been adjusted, at least for now, is employee income.
The new budget freezes salaries and wages for its employees at current levels; however, that could change.
Michael Carpenter, board vice president, said the issue of raises would be discussed further by board members. If the board wishes, he said it can vote to reopen the budget and approve raises.
That could happen after the new budget year begins July 1.
Combined personnel expenses for 12 plant operators is $329,410; personnel expenses for administrators and office staff, six positions total, is $238,000; expenses for other employees, including part-time workers and a field construction manager, is $86,032 combined.
Board members are working to narrow the list of candidates for a new position added to the 2012-13 budget.
Carpenter said 32 resumes were received for the general manager position. A total of $75,000 has been "set aside" for the position, he said, indicating the salary would be negotiated with a candidate tabbed for the job.
The position was created to lead operations at the upgraded plant, which is more complex than the current operating system.
The authority closed on its project financing Thursday and received a notice to proceed Friday. Survey points have been laid out as to where digging will commence, and some equipment has already been hauled to the plant located along Route 61 near Wayside Inn, said Scott Keefer, authority engineer.
A $17.6 million loan from U.S. Department of Agriculture was previously approved for the project. The first two years of loan payments go toward interest. It must be repaid in 38 years.
The authority's contribution associated with the loan is $2.61 million.
Pennsylvania Infrastructure Investment Authority (PENNVEST) also awarded it a $7.7 million low-interest loan and a grant of $12.2 million, according to past reports.
While construction won't halt operations at the authority's office - customers can continue to pay bills at the site, for instance - monthly meetings will eventually move temporarily to the Coal Township Municipal Building, perhaps as early as July. They will continue to be held at 6:30 p.m. on the second Wednesday of each month.
The sewer plant project is the latest phase of a project to separate storm water and sewer lines throughout Shamokin and Coal Township, thereby reducing pollutants bound for the Susquehanna River and ultimately the Chesapeake Bay.
The first phase of the separation project was completed in the Springfield section of Coal Township.
The next phase is planned to begin from Carbon Run near Sixth Street in Shamokin and move west into the Fairview and Ferndale sections of Coal Township, ending near Cedar Street.
A water quality permit has been awarded for that project, estimated at $22 million.
It remains unclear how that phase will be funded or when it will begin.