Canton decreases water rates

BY ERIC HRIN (STAFF WRITER)
Published: December 18, 2009

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Water sales to gas drillers have helped the Canton Borough Authority, but it's also had to deal with increasing energy, debt, and labor costs.

The results can be seen in next year's spending plan.

Recently, the Board of Directors of the Canton Borough Authority approved the 2010 budget, and it includes a water rate decrease of 10 percent for 2010, thanks to bulk water sales to natural gas drillers, which have helped it retire debt.

According to Les Hilfiger, authority manager, the rate decrease is the result of an anticipated early payoff of a $790,000 water construction bond.

"The monthly payment savings resulting from the early retirement of this bond will save $35,000 in 2010 and over $750,000 in interest over the 40-year term of the bond," he said in a news release. "The Canton Borough Authority was fortunate to have extra bulk water sales (to gas drilling companies) of greater than $700,000 in 2010, and these funds will be used for this bond retirement."

In addition, he noted that the 2010 budget also included a sewer rate increase of 4 percent.

"This is the first sewer rate increase since 2003, and is attributed to increasing energy, debt, and labor costs."

Eric Hrin can be reached at (570) 297-5251; e-mail: reviewtroy@thedailyreview.com.

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3 posted comments

TANSTAAFL

Ask the folks around Dimock how the gas wells have helped.

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Waiting,  12/19/09 9:03
WOW imagine if Brenda was still around,with 700,000 of extra sales, she could have gotten a bigger house.
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cantonian,  12/18/09 10:17
Ummmm... so where are comments from all the persons who used to vehemently contend that the gas drilling has done nothing to help the local economy?
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Wondering,  12/18/09 4:51