A key agenda item was the water and sewer budget presentation, where officials discussed the financial implications of stagnant water sales. The town’s water system, which serves approximately 37,000 customers, is experiencing flat production rates despite economic development in the area. This stagnation, coupled with rising operational costs, necessitates potential rate increases to maintain financial stability. Officials noted that the last rate increase occurred in 2021. Funding for a Public Utility Commission (PUC) rate case is included in the upcoming budget, although no immediate rate increase is proposed.

The meeting also addressed the challenges of maintaining aging infrastructure. The town’s water system includes 500 miles of water mains and 250 miles of sewer mains, much of which is over 50 years old. On average, the town deals with 50 water main breaks and 84 service line breaks annually. A leak detection program is in place to monitor and identify issues, and significant valve replacements are planned. The necessity for rapid response to water main breaks and the overall need for infrastructure replacement were emphasized, as these disruptions can impact traffic and service.

Security measures at water facilities were another area of concern. Plans for replacing fencing and gates and increasing surveillance were discussed to enhance security. Water quality measures, including annual hydrant flushing and regular lead testing, are in place to ensure safety.

The discussion also turned to the town’s sustainability initiatives. Proposals for a solar array installation at the water treatment plant were examined, aimed at offsetting the facility’s electricity use. Additionally, plans to explore a combined heat and power plant using bio-gas from digesters could generate electricity and heat for the plant, further supporting the town’s climate action goals.

Public comments acknowledged the consistent quality of Bethlehem’s water, with residents praising the natural quality of the water sourced from the Poconos. Council members expressed gratitude for the water department’s efforts, highlighting the town’s receipt of the AWAP award for 15 consecutive years.

In a broader financial context, the council discussed the strategic use of reserves and the avoidance of borrowing. The town has accumulated $10.7 million in a capital preservation fund from unexpected revenues, intended to replace bonds and associated debt service. This approach reflects a shift from reliance on bonds to funding capital needs through reserves, reducing the financial burden on future budgets. The council emphasized the importance of strategic financial planning and maintaining a balanced budget without resorting to debt.

The council also reviewed the town’s financial reserves and the factors contributing to their growth. The Earned Income Tax (EIT) has seen substantial growth post-pandemic, contributing to budgetary surpluses. This growth has allowed the town to maintain financial stability without raising property taxes. The council expressed gratitude for the improved financial outlook.

Further discussions centered on public works projects and the management of professional services. The council reviewed various contracts and budgetary allocations, emphasizing the importance of transparency and strategic planning in addressing infrastructure needs. Upcoming projects include road maintenance, stormwater management, and non-utility capital improvements, all aimed at enhancing community services and infrastructure resilience.