Council reviews first draft of 2023 Water Fund budget; major dam projects and rate pressure highlighted

Lock Haven city staff presented the first draft of the 2023 Water Fund budget and told council that major capital needs — especially dam projects — could require significant investment and attention to revenue options.

The presenter outlined customer counts for the city water system: 2,186 customers inside city limits, 526 in Lane Township, 525 in Castaneda and 24 in Allison, for a total of 3,237 city customers. The Suburban Water Authority was reported to have 3,322 customers. The presentation noted the city water is drawn from Keller Reservoir and treated at the Central Clinton County Water Filtration Authority plant under a cost‑sharing arrangement.

On capital work, staff described dam projects as the largest shared project and estimated “at least $27,000,000 worth of improvements to the drinking water system” tied to those efforts. The presenter also said the city maintains about 57.5 miles of water distribution mains, several more than 70 years old, and is drawing down fund balance to avoid rate increases. “The city has not raised water rates in 11 years,” the presenter said, and highlighted inflation pressures: a cumulative general inflation figure of about 27.8% since that time and, as presented, an approximately 54% increase in water‑maintenance cost measures cited from the Bureau of Labor Statistics.

Staff recommended an extended review schedule and public access to supporting documents: revenue options will be discussed on May 16, actions considered on June 6, and implementation steps discussed on June 20. The presenter noted the budget is only a draft and would not be adopted midyear; council will have additional opportunities to ask detailed questions at upcoming meetings.

Council members thanked staff for providing the draft and for the extended review schedule to give the public and press time to digest the materials. Council member Stevenson urged colleagues to attend an elective‑officials emergency‑management course (NIMS) being promoted to improve disaster response awareness.

What remains unclear from the meeting record: the presenter did not list specific proposed rate increases, detailed project timelines for the $27 million dam work, or the final proposed revenue mix (grants vs. borrowing vs. rate adjustments). Staff said those revenue options will be explored at the May and June meetings.

Next steps: staff to present revenue options on May 16, propose actions on June 6, and return with implementation recommendations on June 20; council and the public will have further opportunities to review line‑by‑line budget detail posted online.