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RTMA gets state loan for system upgrades

Pennvest awards Reade authority $1.57 million

The Reade Township Municipal Authority has been awarded a $1.57 million state loan to complete long-discussed improvements to its local system.

The Pennvest loan announced Wednesday by state Rep. Frank Burns, D-Johnstown, will allow the installation of about 420 residential meters within the public water system, as well as the replacement of about 10,000 feet of pipes.

Pennvest — the Pennsylvania Infrastructure and Investment Authority — issues grants and low-interest loans to municipal entities for water and wastewater infrastructure upgrades.

On Wednesday afternoon, Reade authority board Chairman Jim Thompson expressed his disappointment that no grant money was received locally.

“I was hoping there would be some grant money in it,” he said.

Thompson said he was told by Pennvest officials that grant funds were withheld because the Reade authority is financially capable of handling loan repayment.

“Our current rates would cover the debt,” he said.

In August, it was announced that Reade’s rates may have to increase to satisfy Pennvest requirements.

On Wednesday, it was not made clear if that is the case.

“We haven’t got the full details of it yet,” Thompson said.

Through the Pennvest offer, the loan’s interest rate will be 1 percent for the first year, jumping to about 1.7 percent after, Thompson said.

The loan must be repaid within 20 years, he said.

The authority’s board will have to vote on whether or not to accept the loan, but that decision likely won’t be made until the offer is reviewed by its contracted engineers and solicitor, Thompson said.

“It’s not finalized yet,” he said. “It’s not a case where we have to take it.”

The $1.57 million awarded is less than the authority’s original request for $2.1 million.

Still, Thompson said the awarded loan should cover planned upgrades, including several additional minor improvements.

Once completed, authority employees should be able to operate more efficiently because of the installation of meter pits, which will be placed below ground near property lines.

With the pits in place, employees will be able to use a radio system to read water usage from outside of the homes, eliminating the need to approach each house, Thompson said previously. The underground meters also will drastically reduce the possibility of inaccurate readings, he said.

“No one can tamper with them, bypass them,” he said in August, noting customers have altered readings in the past. “It makes it seem like you’re losing water.”

Burns also announced a $9 million loan for Ebensburg Municipal Authority for the replacement of 60,500 feet of main sewer pipes.

In August, Ebensburg Borough Manager Dan Penatzer said pipe replacement would affect “nearly all of the borough.”

A message left after business hours Wednesday for Ebensburg officials was not immediately returned.

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