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A $400 million question

Voters will be asked whether to take on water cleanup debt

November 3, 2008
By Jessica VanderKolk, jvanderkolk@altoonamirror.com

If voters read to the bottom of their ballots Tuesday, they'll find a $400 million question below the choices for president and state contests.

The referendum asks voters whether to approve the state borrowing the money to provide municipalities with grants and low-interest loans to fund work on water systems and wastewater treatment plants. Facilities across the state must make upgrades to comply with guidelines designed to prevent pollution of the Chesapeake Bay and its tributaries.

Area borough officials support the bond issue.

John Montgomery, Bedford borough manager, said the benefit to Bedford, which is facing an estimated $9 million bill to upgrade its wastewater treatment plant, is twofold.

''We would be able to borrow money at a much better interest rate than if we were to borrow from a bank or do our own bond issue,'' he said. ''There's supposed to be some grant money, also. Our customers' bills are still going to be going up considerably, but it won't be as great an impact if this passes.''

Without the state money, Montgomery said Bedford customers could see an 80 percent to 100 percent increase in cost. Rates may still rise that much with the funds, if the upgrade cost changes. The borough still is in the design phase.

''It'll help our customers and, really, anybody in central Pennsylvania on public water or public sewer. It's gonna be a benefit,'' he said.

Montgomery paused on whether the benefits outweigh the state going into debt to provide the funds.

''Well, at least this puts the burden on everybody across the state and just doesn't concentrate it in central Pennsylvania,'' he said. ''These are bad economic times, but if we don't do anything, things could get worse.''

The Bedford project will include regular upgrades to the 30-year-old plant, as well as changes to reduce nitrogen and phosphorus - targeted Chesapeake Bay pollutants. It also includes changes to make the plant more energy-efficient.

Rick Pope, Hollidaysburg's Water Department director, also wants to see the referendum pass.

Borough projects in need of funding include replacing 100-year-old pipes and moving existing water mains out of residents' yards and under borough streets.

Pope said most of the homes likely didn't exist when the pipes were laid. While the borough has moved some pipes, more remain to be moved, at a cost of about $1.3 million.

''I know in this climate, people are afraid of people wasting money, but the infrastructure in this state are in dire need of repairs and replacement,'' he said. ''This is a very important referendum that people should know about.''

 
 

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