The board of the City of Lebanon Authority (COLA) approved two resolutions Monday that set new rates for water and sewer customers, effective on April 1, 2025.
On average, water customers will see a 5 percent increase. Larger households or those using about 100,000 gallons a year will pay $614 a year, or $33 more than in 2024, according to figures provided by COLA. Households who use 48,000 gallons a year will have a $24 increase for an annual payment of $395, and small water users will have $18 added to their yearly bill for a total of $260.
“My goal is to keep any rate increase at 5 percent or less,” executive director Jon Beers told the board. “It’s a balancing act between rate increases and capital improvements. Our No. 1 priority is infrastructure and replacing aging water mains and service lines.”
In its 2025 water budget, COLA is projecting water revenues of $12,688,000 with $11 million of that coming from the sale of water. Operating expenses, which include water supply, treatment, and distribution, are estimated at $9,908,500.
Almost $5 million is budgeted for capital expenses, with $3.8 million allocated to projects and equipment for COLA’s water distribution system. While many of those projects are planned, some — like the recent water main break on South 10th Street in Lebanon — are unexpected.
About $700,000 is budgeted to fix emergencies, such as leaking service lines, water main breaks, utilities hitting water mains, and fire hydrants that are hit, Beers estimated.
“Our budget is greatly driven by capital improvement expenses,” Beers wrote in an email Wednesday. “From replacing aging water mains to sewage treatment plant upgrades and now lead service lines, projects and equipment are one-third to one-half of our expenses. We cut a lot out of our water capital improvements this year to keep the water rate increase at 5 percent.”
Rates for Lebanon city customers that connect directly to COLA’s sewage collection will go up 4 percent. Larger households will pay $25 more per year or $703, and smaller households, $15 more or $427. Very small users will see their bill increase only 3 percent or $9 a year to $257.
Sewer rates for municipalities that connect to COLA’s city sewer system or that send wastewater directly to COLA’s treatment plant will go up 3 percent. But those municipalities set their own rates, so while COLA bills each township for sewer treatment, the townships can add costs to their bills to cover maintenance of sewer pipes and pump stations.
“We bill each municipality quarterly for their sewage treatment charges,” Beers said in an email. “The municipalities add their sewer system operating costs onto our sewage treatment costs for the bills to their sewer customers.”
Beers told the board that about two dozen customers called after receiving letters that their service lines could be lead. In November, COLA mailed letters to 2,300 customers informing them that they might have lead service lines.
Read More: City of Lebanon Authority sends letters about possible lead service lines
“The calls have been friendly,” Beers said. “Their biggest question is, ‘What does this mean?’”
Beers said he recommended that callers have their water tested for the presence of lead and let COLA know the results. If lead was confirmed, replacement of the pipe can be prioritized. Of those who called, about half had their water tested and determined lead was not present, Beers said.
In other business, the board:
- Approved a water main replacement project on portions of Fonderwhite, Evergreen, Larkspur, Edgewood, Clover, and Margin streets in South Lebanon Township. Arthur Aungst Inc. was the low bidder at $1.8 million. The project could start in early spring, Beers said.
- Thanked water systems director Mike Long for 40 years of service to COLA.
- Approved three payments for the wastewater treatment plant improvement project including:
- $40,000, Pact Two for general contracting;
- $14,670, Garden Spot Mechanical, for plumbing;
- $26,100, Garden Spot Mechanical, for HVAC.
The City of Lebanon Authority Board meets at 2311 Ridgeview Road, Lebanon, on the second Monday of each month at 3 p.m. The next meeting will be on Monday, Jan. 13. These meetings are open to the public and do not require registration.
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