Monthly service fees and legal easements
The Nuangola Sewer Authority Treasurer Ted Vancosky has made an inquiry into establishing a $35,000 line of credit, so the authority can pay its bills.
According to board members, the authority is experiencing cash flow problems because about 20 percent of borough residents are failing to comply with connection fees, monthly service fees and legal easements.
One of the payments coming due is a $12,000 payment to Fulton Bank of Lancaster to settle what the authority has labeled as a “bridge loan.”
In addition, Vancosky said the authority has a $185,805 payment to the U. S. Department of Agriculture due on Sept. 25.
While Vancosky stated the authority has $989,000 in its general fund account, which is largely money from a USDA grant, its operating accounts have over $20,000 in bad debts.
Board Chairman Ray Shirk said that 33 liens have been filed against property owners who are in arrears and more are in the process of being filed against individuals who are not paying a $67 per month system rental rate.
Vancosky said rate hikes may come into play when the authority begins budget deliberations in October.
