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Chambersburg seeks state loan for water project

April 27, 2001

Chambersburg seeks state loan for water project



CHAMBERSBURG, Pa. - The Chambersburg Borough Council authorized town officials to apply for a state loan that would partially fund an $8.75 million project to improve water service.

The loan would have no effect on an anticipated 20 percent increase in water rates, said Eric Oyer, borough manager.

On Wednesday, the council agreed borough staff should apply for a $5.4 million loan from the Pennsylvania Infrastructure Investment Authority.

A $3.36 million grant from the Environmental Protection Agency and a $1 million grant from the Army Corps of Engineers may also help pay for the improvements, Oyer said.

The project includes the construction of a third water main that would improve the water supply and pressure for residents in the southern end of the borough.

Currently, two water transmission mains, built in 1911 and 1936, service the borough's 7,249 residential, commercial and industrial customers, with water from two reservoirs in Caledonia State Park.

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A 2 million-gallon elevated storage tank and the cleaning and lining of one main are also part of the plans.

Oyer said that even without the proposed project, a rate increase would be considered.

The last rate hike was 10 years ago, and the proposed increase would raise the average residential customer's $13.14 monthly bill by $2.63.

"In order to increase water rates, council would have to approve a new ordinance," Oyer said. "I anticipate bringing a final recommendation to council in the next couple of months to get authorization on a water rate change."

- Stacey Danzuso

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