Lock Haven City Council votes in favor of termination of Lock Haven City Authority

By Emily Wright

LOCK HAVEN, PA – Lock Haven City Council aims to put an ordinance in place that would dissolve the Lock Haven City Authority. All council members voted in favor of the ordinance at Monday evening’s City Council Meeting.

Ordinance No. 2023-07 would allow the City of Lock Haven to acquire the water system from the Lock Haven City Authority, which has maintained the sewage treatment plant, dams, and reservoirs that feed water services for city properties and those of neighboring communities since 1961. If dissolved, all assets, real estate, easements, agreements, and records of the Lock Haven City Authority would revert back to the city of Lock Haven, which is the sole founding Municipality of the Authority.

According to the City Council, water rates must increase to meet the expenses of improvements and operations. If the ordinance is adopted, residents of Lock Haven, Castanea, and Wayne Township will see an average annual tax increase of at least 11% in water use rates each year for the next ten years, with some years requiring an increase of as much as 28% or higher due to the necessary upgrades and inflation.

In a letter sent by City Manager Gregory Wilson to Castanea and Wayne Townships, he stated, “DEP requires the system to make millions of dollars in improvements to both Ohl and Keller dams. There must also be two new million-gallon-a-day water wells permitted to meet the needs of the system while Keller is repaired. Beyond water main upgrades, there are capital projects that are needed over the next decade,”

City Council is interested in forming a Joint Municipal Authority (JMA) between the City of Lock Haven, Castanea Township, and Wayne Township as a means of owning and operating the water system. The JMA would own the water system, including the dams and lines, and would make decisions about setting water rates and operations. Members from all three municipalities would be appointed to serve on the board. If the three municipalities are unable to form a JMA, the city plans to solicit proposals to sell the water system to a public or private buyer.

According to Wilson, “A way to ensure the lowest possible increases to customers is through the formation of a JMA”.

The City’s intention in forming a JMA would mean that the City could avoid having to go to the Public Utilities Commission (PUC) to get approval on rate changes, a yearly requirement that would continue for the next 10 years. In his letter, Wilson stated, “If the City alone must approach PUC for a rate change, it is a very costly process each year and will result in even larger rate increases.”

June Houser, chairman of the Lock Haven City Authority addressed councilmembers at the meeting, “First of all, under the guidelines from the city authority, we are able to pay for any costs associated with filing with the PUC. So if you have a bill for the PUC and that was forwarded to us, it would be reversed. Secondly, the fact that you want to disband the city authority… we have no authority, the authority has no right to raise rates. So that’s probably one good thing about us. The city has to go through the PUC ratings and review and schedule a ruling to raise rates. And I don’t think they want to do that.”

In order for the ordinance to be adopted, City Council members will need to vote on it during its second reading. In the meantime, a subcommittee including City Councilmembers Rick Conklin, Barbara Masorti, and Richard Morris has been appointed to meet with representatives from the three municipalities to work out the details of forming a JMA, providing that Castanea and Wayne Townships are interested.