17414_Authority_April_2024

52 The Authority | APRIL 2024 “This cross subsidization tool has become increasingly utilized,” DeFrank said. The PUC has to approve any “distribution improvement” charges laid out in Act 11. Amy Sturges, the Deputy Executive Director of Advocacy for the Pennsylvania Municipal League, which represents 142 member cities, townships, and boroughs, testified the League supports local decision-making in general. Sturges said a poor taxing structure in conjunction with a limited tax base, unfunded mandates, exorbitant infrastructure costs, and non-routine property tax assessments have created a perfect storm of fiscal pressures to sell off a municipal system. “These pressures do not exist in a vacuum,” Sturges said.” It is not uncommon for a community to be faced with all of these factors at once therefore balancing the costs with the ability of taxpayers to support services can be a significant challenge. It’s little wonder what selling a system and getting out from under federal and state mandates and infrastructure costs is attractive to local officials?” Sturges said action is needed from the General Assembly to “ease these systemic pressures.” State Senator John Kane has already introduced a bill to repeal Act 12, but it faces an uphill battle in the GOP-controlled state senate. If Act 12 is repealed, all five acquisitions currently before the PUC would be removed from consideration. S Permission to reprint by 888.892.5860 keystoneinsgrp.com ©2024 Keystone Insurers Group ®. All rights reserved. This does not constitute an offer to sell a franchise in any state in which the Keystone Insurers Group franchise is not registered. Keystone provides the experience and expertise you need to resolve issues quickly and safeguard your community. With offices throughout PA, our local agents collaborate with you to understand the unique challenges you face. Together, we can build an insurance and risk management plan that fits your community and provides environmental protection. Safeguarding communities