Construction was originally expected to begin this summer, but no contracts have been awarded to date. The inability to come up with an affordable debt service plan has put the project on hold indefinitely. Total cost of the project is $2.6 million, including $474,000 in matching funds from the municipal authority. The state park’s portion of the debt service would come out of its budget. The project has a total of 58 equivalent dwelling units, 33 of which are homes and 25 of which belong to Keystone State Park, she said. “Because of the small amount of customers in the initial piece of the project, it could be financially untenable.” “The board is still reviewing the feasibility of going through with the project, understanding that it could be an undue burden on the rate payers,” she said. Henderson said the board would like to keep the debt service to rate payers at or below $60 a month. “The (municipal authority) board does not want that to happen, so they’re looking at other options.”Īmong the options being considered is spreading the burden for paying off the loan among all the customers served by the municipal authority - not just those who will newly be brought onto the system, she said. “No one will be asked to pay that,” Henderson said. The municipal authority had hoped to receive a grant as part of the funding package, but instead received a 20-year loan at a 1% interest rate for the first five years and a 1.74% interest rate for the balance of the term.Įstimated debt service on the PennVEST loan would require monthly payments of up to $104 on the part of the new customers, said Carol Henderson, municipal authority manager. The project also would incorporate residential properties on Oasis and Lower Flowers roads currently served by on-lot septic systems. The state park’s own sewage treatment facility, at 60 years old, is considered obsolete and would be replaced. In January, the municipal authority received a $1.8 million low-interest loan from the Pennsylvania Infrastructure Investment Authority, or PennVEST, to construct a sewage line from the state park to the New Alexandria treatment plant. A project to extend sewage service to Keystone State Park and 33 nearby residences is temporarily on hold as the Derry Township Municipal Authority looks for a way to make it affordable for customers.
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