Bucks County Water & Sewer Authority To Borrow Close To $200 Million For Future Work

The Bucks County Water and Sewer Authority plans to borrow close to $200 million for future wastewater capital improvements on its large system.

The authority, which serves more than 100,000 customers in Bucks County and more in nearby counties, on Thursday announced it received an A-plus rating from S&P Global Ratings. The rating will help with the approximately $197.6 million in sewer system revenue bonds the authority plans to take out.

The move comes just months after for-profit Aqua Pennsylvania attempted to purchase the public authority. The move was guaranteed to raise rates and residents and numerous municipalities worried due to Aqua Pennsylvania’s history of increasing rates amid pressure to make a profit for shareholders. The deal fell apart after the Bucks County Commissioners came out against it and residents made their voices heard.

The proceeds from the bonds will be used to pay for a number of wastewater capital improvements, including the expansion and modernization of several wastewater treatment facilities as well as the repairs necessary to comply with the first phase of the recent consent agreement between the Bucks County Water and Sewer Authority and the U.S. Department of Justice regarding sanitary sewer overflows. Additionally, the authority’s current bonds and sewer debt will be repaid with the revenues, according to the authority.

The authority is expecting to undertake replacement of the Neshaminy Interceptor that carries wastewater from Lower Bucks County to a treatment plant in Philadelphia, and perform lateral sewer work as part of the agreement with the U.S. Department of Justice.

In summer, Bucks County Water and Sewer Authority CEO Benjamin Jones told the public the authority would have costly repair work ahead, but he noted the system was strong and the authority didn’t have too large of an existing debt load.

In late September, the authority decided to increase retail sewer customers’ rates by 10 percent over the course of three years. Wholesale customers, which are other authorities, will pay more for using the Bucks County Water and Sewer Authority resources, but they will split the rate hike among their retail customers, according to the Doylestown Intelligencer.

The authority has been able to secure bonds for the projects at a rate slightly below 4 percent.

John Cordisco, the chairman of the authority board and the recent former head of the county’s Democratic party, credited the Bucks County Water and Sewer Authority’s “exceptional operational management practices and policies.” He thanked the staff for their work.

“We have a lot of work ahead of us as stipulated by the consent decree, along with many major infrastructure projects that our outstanding team is well qualified to manage,” he stated.

Based on past performance and conservative expectations, S&P also provided a stable outlook for the authority’s financial performance. The authority’s current A+ rating on sewage revenue bonds was also confirmed by the bond rating agency, according to the Bucks County Water and Sewer Authority.

Parts of the Levittown area are served by the Bucks County Water and Sewer Authority. The Township of Falls Authority, Lower Bucks County Joint Municipal Authority, the Bristol Township Sewer Department, Aqua Pennsylvania, Pennsylvania American Water, and several smaller local authorities also serve the area.

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