At the January 10, 2023, Newtown Bucks County Joint Municipal Authority (NBCJMA) Board meeting, Mr. Warren Gormley - Authority Manager - responding to an inquiry from Newtown Supervisor John Mack, said that the Authority is raising rates by 20% from $68 per quarter for 10,000 gallons usage to $82 per quarter. Excess over 10,000 gallons is now $12 per 1,000 gallons per unit versus $10 previously.

Some people  have already received invoices with the rate increase. 

The increase was implemented in anticipation of increased rates that the Bucks County Water and Sewer Authority (BCWSA) charges NBCJMA for  "conveyance fees." These fees are for conveying Newtown’s sanitary sewer waste water to treatment plants in Philadelphia.

Mr. Gormley indicated that he will attend the January 11. 2023, Newtown Supervisors meeting to make a statement about the increase and answer questions.

UPDATE:

#NewtownPA Sewer Authority Manager Warren Gormley Explains Rate Increase

It’s been a long hot summer and much has happened while we were on vacation. The Newtown Board of Supervisors (BOS) has received many comments from residents this summer regarding several issues – especially pedestrian safety, Lower Dolington Road trail delays, and women’s reproductive rights (i.e., abortion). Residents joined me via Zoom to discuss these and other issues at the September 12, 2022, Meet Mack Monday meeting.

Some residents were concerned about the Women's Reproductive Rights Resolution. What does this resolution say? Whose opinion does it represent?

Find out by reading the summary here...

[Image: Warren Gormley, Authority Manager at Newtown Bucks County Joint Municipal Authority (NBCJMA), advised supervisors at an August 10, 2022 public meeting, that the sale of the BCWSA sewer assets to a private company (Auqua PA), is “just not a good thing for the rate payers."]

Bucks County's proposed $1.1 billion sale of its sewer and water operations is off, according to Essential Utilities Inc. [parent company of Aqua PA]

The company reached an exclusive one-year agreement to discuss purchasing the county's wastewater operations in July. That led to public objections to sewer operations, now controlled by the public Bucks County Water and Sewer Authority, being controlled by a for-profit operation. Those complaints led to a reversal Tuesday by the authority against such a deal.

"While we were surprised and disappointed by the sudden turn of events yesterday, we respect the opinions of the Bucks County elected officials," according to a statement from Christopher Franklin, chairman and chief executive officer of Essential Utilities.

Franklin said government-owned systems have suffered "tragic events associated with long-term deferred maintenance."*

*****

But will that prevent future rate increases? According to S&P Global Ratings, “Currently, the system has affordable rates and above-average incomes, which we view as positive given the potential for future rate increases.” Read "Bucks County Water and Sewer Authority receives A+ bond rating as it prepares for major repairs."

Bucks County Commissioners Bob Harvie and Diane Ellis Marseglia are asking the Bucks County Water & Sewer Authority to end consideration of a proposed sale of its sewer conveyance system to Aqua, Inc.

Marseglia said after carefully reviewing all the information available regarding the sale, "I cannot recommend that the BCWSA continue to entertain Aqua, Inc.’s proposal.

"While the financial aspect of this deal is a reasonable alternative given the expensive infrastructure work ahead, what we heard from the public was clear, nonpartisan, and near-universal: do not sell off the publicly-run BCWSA sewer system to a private entity... Fear of ballooning rates, as evidenced by similar takeovers around the country, and loss of a well-managed, highly-regarded public utility topped the feedback I have received," said Marseglia.

The Bucks County commissioners want to know more about the proposed $1.1 billion sale of the Bucks County Water and Sewer Authority’s sewer system to the private company Aqua Pennsylvania (background: “BCWSA & Aqua Host Meeting With Municipal Partners”)

The commissioners attached a list of approximately 50 questions that they, county staff members and residents would like answered by Aug. 29. [See the list of questions.]

While the commissioners wait for a response, several municipalities in Bucks and Montgomery counties have already made up their minds that the deal is not a good one for ratepayers and they’ve passed resolutions putting their opposition in writing (read “#NewtownPA Supervisors Approve Letter Opposing Bucks County Water and Sewer Authority Sewer Sale”). Now some are joining a consortium to fight the proposal legally, if need be.

In their letter, the county commissioners questioned how much debt the authority has. They also questioned whether the authority is bound to give the leftover funds to the county, or would that be up to the discretion of the BCWSA Board of Directors.

The commissioners also wanted to know what the BCWSA rates have been for the past five year and how much rates would rise in 5 and 10 year increments if the system stayed with the BCWSA and if it is sold to Aqua.

And they questioned how the authority would continue its water operations, that are valued at approximately $300 million, going forward once its larger sewer system would be sold. "Will water rates need to increase to allow the authority to function successfully?"

They also wanted to know about the BCWSA's maintenance needs, estimated at $245 million, not including repairs needed to sewer laterals to private homes.

The News of Interest (NOI) e-newsletter features content curated from articles published in local newspapers and other sources.

The August 2022 issue of NOI topics include: No Gun Shows at NAC, Yes or No to EMS Tax Referendum? Pedestrian Safety, No Sewer Sale? Abortion Rights Resolution, More…

Access the complete issue...

[Image: Warren Gormley, Authority Manager at Newtown Bucks County Joint Municipal Authority, addresses NT Board of Supervisors on August 10, 2022.]

Warren Gormley tells supervisors: "It's just not a good thing for the rate payers...it will increase rates dramatically." View the video of his remarks.

The letter states, in part: 

This correspondence is being sent on behalf of the Newtown Township Board of Supervisors.

As elected Township officials, we share the common goal of providing valued and cost-effective services to our constituents.  

BCWSA has recently announced that it is considering an offer from Aqua America to purchase its assets for $1.1 billion dollars. Aqua has a history of increasing its sewer rates substantially.

The Board of Supervisors believes it is inadvisable for BCWSA to sell its assets to Aqua. As former Township officials yourselves, we are certain you are cognizant of the uncertainty such a potential sale causes ratepayers, particularly in this time of high inflation. 

We respectfully solicit the County Commissioners to take any and all reasonable steps to compel BCWSA to abandon its negotiations with Aqua and for BCWSA to continue operating as an independent, non-profit agency, as intended when it was created in 1962 by the Bucks County Commissioners.

Read the entire letter...

Bucks County Water and Sewer Authority (BCWSA) recently announced that it is considering an offer from Aqua PA - a private company - to purchase its sewer (but not water) assets for $1.1 billion dollars (read "Bucks County Moves Ahead on $1.1 Billion Offer to Sell Sewer System to Aqua Pa.").

This sale - if it happens - can double the sewer fees paid by Newtown Township and Newtown Borough residents who are currently customers of Newtown Bucks County Joint Municipal Authority (NBCJMA) even though NBCJMA is not part of the proposed sale. Why? 

Read the newsletter to find out why...

BCWSA and Aqua are now hosting a series of private and public meetings to answer questions from municipalities and the general public. As a "municipal partner" local elected officials – including Newtown Township supervisors – were invited to a special meeting on July 25, 2022, at the Bucks County Community College (BCCT).

Listen to a 12-minute audio clip from that meeting, which ran on for more than 2 hours, focuses on concerns relevant to Newtown Township. Speakers include John Cordisco, BCWSA Board Chair and Benjamin Jones, BCWSA CEO.

Note: Newtown's sewer facilities will not be sold as part of the plan. 

The Bucks County Water and Sewer Authority (BCWSA) serves about 100,000 households in 31 towns in Bucks, Montgomery, and Chester Counties. The authority announced Wednesday, July 13, 2022, it is considering a formal offer of $1.1 billion from Aqua Pennsylvania to buy its sewer system, which makes up about three-quarters of BCWSA’s customer base. If the sale is approved, the remaining BCWSA entity would serve only drinking water customers.

The privatization would generate a huge windfall for Bucks County government at the expense of 75,000 sewer customers who would pay higher rates under private owners.

The board got an earful on Wednesday as about 30 spectators crowded the BCWSA’s tiny meeting room in Doylestown Township to denounce the board’s move, which was not advertised in advance and appeared on a hastily amended agenda (see photo). “It’s a disgrace what’s happening here,” said Len Hughes Jr., a union shop steward with the AFSCME local that represents the authority’s supervisors.

Under Aqua’s proposal, current sewer rates would be frozen for a year. But in the coming years, rates would eventually increase to match Aqua’s rates, which are now about $88 compared with BCWSA’s average monthly rate of $48.

Though BCWSA’s fees are now much lower than those charged by Aqua, a projection conducted for the authority projected that its rates under continued public ownership would increase at a quicker pace than Aqua’s in the next 10 years to pay for anticipated upgrades to its aging sewer mains and treatment plants to resolve sewage overflow issues, said Jones. In about a decade, the $40 difference in bills between BCWSA and Aqua would shrink to about $20, he said.

Still, by that math, about 10 years from now customers would be paying $20 more a month under Aqua compared with BCWSA.