BETHLEHEM, Pa. — Bethlehem City Council on Tuesday unanimously approved an 8% hike on city sewer rates come 2024.
Officials have said the move would keep the capital fund strong, help to avoid borrowing and also fund needed improvements to the wastewater treatment facility.
The vote was 5-0. Councilwomen Paige Van Wirt and Hillary Kwiatek were absent.
The new rates would increase most customers' bills about $2 a month, officials said.
According to previously shared city data, most customers would see a resulting $3.515 charge per 1,000 gallons, a $31.08 meter charge, $80.23 quarterly bill and $320.92 annual bill.
Other city sewer rate hikes have included 10% in 2017 and 8% in 2020.
Thoughts from officials
Council President Michael Colón said he supported the rate hike for a number of reasons, but he’d also be open to the city conducting a relative rate study to aid the decisions of future leadership.
Other council members agreed with that sentiment.
“So while I don’t ever support any increase without thought, I think when we talk about the $24 a year for the average residential user, at the end of the day, it comes down to, in my opinion, a more responsible way of conducting business than looking at closing budget gaps with more borrowing or other limits to the operations, to what they have now,” Colón said.
At a November committee discussion surrounding the potential raise in rates, Van Wirt said she saw it as a “regressive tax” and wouldn’t vote in favor of it.
At a Finance Committee meeting before Tuesday’s council meeting, city Water and Sewer Resources Director Edward Boscola said the sewer fund is a self-funding enterprise and rate increases are needed “from time to time.”
“Our goal is not to shut people off. … The number of people that we ultimately refer to collections also is much lower than 1%, I think. We can work with people if they’re having financial issues.”Bethlehem Director of Water and Sewer Resources Edward Boscola
“We rely on rates to help fund our operations,” Boscola said. “Expenses increase over time, and those expenses outpace our revenues.”
Councilwoman Kiera Wilhelm asked Boscola about the options for those who may have trouble paying their bill in the new year.
Boscola said to contact the city billing office to learn about available options, including payment plans.
“Our goal is not to shut people off,” Boscola said. "The number of people that we ultimately refer to collections also is much lower than 1%, I think. We can work with people if they’re having financial issues.”
Serving more than just the city
Bethlehem owns, operates and maintains its own wastewater treatment plant, while also operating and maintaining the Hanover Township Collection System through a multi-decade agreement. However, the township owns that facility.
The city collects and treats waste from 11 other nearby municipalities, but those other places own and maintain their respective systems while also charging their own rates for service.
City solicitor John Spirk Jr. outlined Bethlehem's relationship between its surrounding service area.
“You wouldn’t want to use the rationale that the outline tributaries have much longer service lines and they cost so much more to maintain than our service lines here in the city,” Spirk said.
“We’re not taking general fund tax dollars, your property taxes, and putting it into Bethlehem Township pipes. That’s now the way that this works.”Bethlehem Mayor J. William Reynolds
Each municipality is responsible for its own collection system, he said, and none of those costs are factored into Bethlehem residents’ rates.
Council members previously have mentioned the idea of renegotiating those terms, something that Spirk said is possible but likely not a simple process.
“We’re not taking general fund tax dollars, your property taxes, and putting it into Bethlehem Township pipes,” Mayor J. William Reynolds said. “That’s now the way that this works.”
Residents' comments
Mary Jo Makoul, a West Bethlehem resident, said she doesn't have much financial leeway to accommodate the raise in fees.
“I’m now going to have to sit and scrutinize my budget,” Makoul said. “I believe members of this council have multiple household incomes; I am not that fortunate.
“My household consists of myself and my four-legged best friend and protector.”
“I’m now going to have to sit and scrutinize my budget. I believe members of this council have multiple household incomes; I am not that fortunate.Bethlehem resident Mary Jo Makoul
“I don’t know where I’m coming up with the extra money,” disabled veteran and resident Bryan McCrickerd said. “And look at my taxable income. If it wasn’t for my wife [being] retired, I wouldn’t be able to afford anything.”
Resident Bud Hackett said, “If you’re going to ask taxpayers to pay more, how about saying, ‘We did everything we could to reduce costs.’… It seems like a very simple question and should be part of the budget process.
“Correct me when I’m wrong, but I haven’t seen it yet.”
Resident Terry Kloiber asked, “How do you justify charging a senior the same amount of taxes that you charge people that are working for a living?”