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If you are a City of Lebanon Authority (CoLA) customer, you may have recently read that your sewer rates will be increasing on April 1, 2026. This decision will impact residents, commercial businesses, industries, and municipalities alike.
Before looking in detail at the rates, let’s look at the CoLA sewer system, in general. Hopefully this will provide some much-needed context that drives CoLA’s decision- making.
The CoLA sewer system is comprised of two components – its collection system, and its Wastewater Treatment Plant in North Cornwall Township. The collection system consists of 70-plus miles of sewer main within the City of Lebanon, collecting sewage from City residents and also transporting sewage from some municipalities connected to it. The treatment plant receives and treats sewage from the City and 10 surrounding municipalities, and also contains a biosolids treatment and drying system. The plant is permitted to treat 8 million gallons per day of sewage, and currently averages 4.5-5 million gallons per day. A population of nearly 60,000 residents is served by these operations.
Like most sewer systems throughout the country, CoLA’s has aging infrastructure that must be replaced and upgraded routinely in emergency situations, in order to operate at the level customers have come to expect. The treatment plant was built in 1962, and over half of the collection system mains were installed in the 1940s or earlier. As one can imagine, the costs of these upgrades are not inexpensive. Some upgrades are actually mandated by either the state or federal government.
Since 2001 CoLA has borrowed significant money to finance sewer system upgrades – $76,819,000 to be exact. The largest undertaking was a $55 million project from 2010- 2013, which upgraded plant infrastructure and made the plant compliant with federally mandated nitrogen and phosphorus reduction to the Chesapeake Bay. The Authority borrowed $45 million for this project, and continues to pay the balance through 2032.
Currently, construction is winding down on the present series of upgrades. The Authority has borrowed $27,934,000 through PENNVEST to fund these upgrades and will begin making principal payments in 2026.
Everyday costs to operate the system continue to rise as well. Yearly routine repairs and maintenance on vehicles and equipment are just over $400,000. Electricity costs to power the wastewater treatment plant approach $500,000 annually, and chemicals used in the treatment process are close to $1,000,000. Capital expenses for the next year include $350,000 for sewer main rehabilitation, and $933,000 for trickling filter media replacement at the plant.
Raising rates is a decision not made lightly, but often is a necessity when faced with the costs mentioned earlier. The decision’s ultimate impact on CoLA’s customers is always a guiding factor.
CoLA sewer customers comprise three categories – customers in the City of Lebanon, customers in municipalities connected to the CoLA collection system, and customers in municipalities not connected to the CoLA collection system. Base rates for customers in all three categories will be increasing 4.2%. Rates are based on the size of a customer’s water meter, and for residential customers will be increasing from $43.14 to $44.96 per quarter, an increase of $1.82.
Consumption charges are fees charged to customers based on the gallons of sewer used. They are measured by the water meter in most cases, or sometimes are estimated for a customer on a well. Consumption charges for City customers will increase from $5.30 per 1,000 gallons of water used, to $5.98, an increase of 68 cents. When the base charge is included, a typical residential customer using 12,000 gallons of water will see the sewer portion of their quarterly bill increase from $106.75 to $116.75, an increase of $10 per quarter.
Consumption charges for customers in municipalities connected to the CoLA collection system will increase from $4.19 per 1,000 gallons of water used, to $4.72, an increase of 53 cents. Included are customers in Heidelberg, North Lebanon, South Lebanon, and West Lebanon Townships. Including the base charge, a typical residential customer using 12,000 gallons of water will see their quarterly bill increase from $93.43 to $101.65, an increase of $8.22 per quarter.
Consumption charges for customers in municipalities not connected to the CoLA collection system will increase from $4.04 per 1,000 gallons of water used, to $4.58, an increase of 54 cents. Included are customers in Cleona and Cornwall Boroughs, North Cornwall, South Annville, and West Cornwall Townships. Including the base charge, a typical residential customer using 12,000 gallons of water will see their quarterly bill increase from $91.63 to $99.96, an increase of $8.33 per quarter.
Importantly, CoLA’s rates remain some of the least expensive in the county, among other municipalities. PA American Water Company, a nearby private utility, was recently approved by the PA Public Utility Commission to raise sewer rates, including consumption charges 80% greater than CoLA’s.
Finally, it is important to note that municipalities own and maintain their own sewer collection systems and will charge additional rates, on top of what CoLA charges for treatment. Municipalities must be contacted for the status of their sewer rates for 2026.
Tom Deitzler is the executive director of the City of Lebanon Authority. Previously he had served as COLA’s deputy director.
