17736_Authority_August

municipalauthorities.org | 51 C harleroi C ouncil M oves to D issolve A uthority May 31, 2023 - In an effort to generate revenue, Charleroi council will begin taking steps to dissolve the Authority of the Borough of Charleroi (ABC), the community’s water and sewer authority. The borough has no other options, according to a statement issued last week by attorney Thomas Wyatt, contracted by the borough in March to handle matters involving ABC. “After many months of public discussion, and several months of diligent and quiet efforts to reach a resolution that would result in a long-term partnership with the Authority of the Borough of Charleroi (ABC) and resolve our MS4 and collection system issues, the members of Charleroi Borough Council have concluded that there is no option other than to begin the process of taking over ABC,” the statement reads. ABC provides water and sewer services to the boroughs of Charleroi, North Charleroi, Speers, Twilight and Dunlevy, as well as Fallowfield Township. The authority also provides water service to the boroughs of Donora and Cokeburg, city of Monessen and portions of Somerset and Rostraver townships. The statement said the borough hopes to resume discussions with ABC, but if that does not happen soon, “the borough will act accordingly.” Council is expected to hold the first reading of an ordinance to dissolve ABC and transfer its assets and liabilities to the borough at its June 7 meeting. No sale of ABC assets is being considered, Wyatt said, thus, no change in customer rates or loss of jobs by ABC employees is expected. Wyatt added that ABC is an asset of the borough according to law. It has significant funds beyond the money it needs to maintain its systems. “The borough will utilize some of those funds for the betterment of our community, and we will also analyze all of ABC’s existing contracts and relationships to ensure the public is getting the best value for its dollars,” the statement reads. The authority, created by the borough in 1937, has been the subject of discussion as council explores ways to generate money. In October, the borough was looking at a $1.1 million deficit. Council eventually voted to raise taxes by 3 mills. In December, council voted against a motion to accept a $2 million offer from ABC to purchase the borough’s sewer lines and assume MS4 duties. MS4 is a separate storm sewer system not connected to the sanitary sewer system. The offer also included the authority paying off the borough’s PennWest loan, which is about $4.4 million. “We do not make this decision lightly, and realize it is a momentous action,” the statement reads. “However, the Charleroi community, its residents and businesses, need funds to fulfill obligations – including many government- mandated obligations relating to the water and sewer system – as well as to stabilize the finances of the borough without having to continually raise taxes on its citizens and businesses. The elected officials of the borough have worked tirelessly to get the cooperation of the appointed board of ABC. We are left with no choice, but to take this step.” Dennis Paluso, ABC solicitor, said the authority is willing to continue negotiations. “The authority had questions about the memorandum of understanding and countered some of the requests regarding the authority paying the borough’s professional expenses in this agreement proposed by the borough’s counsel. That wasn’t acceptable to the borough.” S PMAA is including the following news articles (page 51 - 52) to share part of the story of the Authority of the Borough of Charleroi when faced with combating possible dissolution. Permission granted to reprint by the Observer-Reporter Source: www.observer-reporter.com/news/2023/may/31/charleroi-council-moves-to-dissolve-authority/