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Thorpe considers utility tapping fee hike

Jim Thorpe Borough Council is considering its first change to utility tapping fees in at least two decades.

A recent fee study, completed by Keystone Alliance Consulting, to calculate and determine appropriate charges yielded an allowable maximum charge of $23,496 per equivalent dwelling unit for connection to the borough’s water system and $11,719 for connection to its sewer system. Jim Thorpe currently charges $1,000 for a water tapping fee and $3,500 for sewer.

“There is no doubt the fees have to go up, it’s just a matter of what the council feels is appropriate,” said Greg Strubinger, council president and acting mayor. “The last study was done around 20 years ago.”

Borough Manager Maureen Sterner said borough staff tried to get comparable numbers from neighboring municipalities but did not have much success.

“This is for new connections,” Sterner said of the fee. “If a property owner has an existing line that needs to be replaced this isn’t on them because they have already paid their tapping fee.”

Raising the tapping fee would help offset improvements to the water and sewer systems, Matt Boggs of Entech Engineering told council members.

“You are constantly looking for grants to subsidize repairs to components of your water and sanitary,” Boggs said. “You shouldn’t have to use that as the solution.”

The borough, Sterner said, knew the fees hadn’t been updated in a while, prompting the study, which is required by the state if a municipality wants to raise rates.

“With all of the maintenance and things breaking down at the water plant, this seemed like the time to look at it,” she said. “The sewer plant seems to have a five-year cycle on a lot of the equipment we just put into it.”

Keystone Alliance did a similar study for a municipality in Lancaster County around a year ago, Boggs added. The study resulted in a sewer tapping fee increase from $4,000 to $16,000.

Three properties hooked onto the borough systems last year, which staff called “an unusually high amount.” Over the last decade, officials said, there were likely less than 10 hookups.

Ed Gula, who heads the borough’s sewer department, outlined a recent project where the extra income could have come in handy.

“Last year we got a quote to repair 6 or 7 manholes,” Gula said. “The contractor’s price was roughly $14,000. There wasn’t any extra money in the budget. If you had a new connection right now, it would be money to go to that type of a project without increasing rates to all your customers.”

Council meets next Thursday night but has not announced whether or not it will make a decision at that session.

“It is not an easy study to read and digest,” Sterner said. “Council has had it for a few weeks. It is up to them whether they want to vote on it next week or whether they want more time.”