Lease of city water and sewer subject of public forum
The Lehigh County League of Women Voters hosted a public forum recently regarding the potential lease of the city's water and sewer resources.
A panel of seven individuals discussed topics ranging from the effects of privatizing Allentown's water and sewer resources to whom should manage them and the experiences of other communities that have sold or leased their water supply or sewer systems.
Currently Allentown is considering using a concession lease to address the city's $200 million unfunded pension liability.
Dan Koplish, retired water resources manager for the city, discussed the standards of practice, a comprehensive manual he drafted for the city. The manual, Kopish said, offers greater protections than the regulatory and permit standards and will maintain water quality standards while considering long-term goals.
Dan Poresky, a member of One with the Earth Project, was skeptical of Allentown Mayor Ed Pawloski's plan to lease the systems.
"The mayor's privatization plan jeopardizes our water and is fiscally irresponsible," Poresky said. "People will repay this for generations to come."
Managing Director for Public Financial Management Scott Shearer said the city has explored a variety of different options to attempt to resolve the unfunded pension issue, such as implementing a millage increase, debt reconstruction avenues and leasing other city assets such as the golf course.
"We are looking at all different options and how to create a holistic budget," Shearer said.
City Finance Director Gary Strathearn stressed Allentown is "facing a serious problem."
He said a concession lease is the "most viable option" to resolve the problem.
"We have to pay it," Strathearn said of the unfunded pension liability. "We have no choice."
Jim Kennedy, former mayor of Rahway, N.J., spoke about his experiences leasing his city's water. Kennedy said his city saved $22 million to date by resorting to a lease option, asking people to be open-minded throughout the process.
"Everything out there is transparent," Kennedy said. "Listen to the pros and cons on both sides."
Mary Grant, researcher for Food & Water Watch, told meeting attendees they will lose control of their water and sewer resources and the lease, in the end, will cost more.
"This is the real world," Grant said. "There are no free lunches."
Al Wurth, professor of political science at Lehigh University, told residents they should be running their own water system, as they do with fire and police. Wurth also contended companies are interested in the concession lease deal for monetary reasons.
"Follow the money," Wurth said. "The real question here is the incentives. We can't have our cake and eat it, too. Either we're going to protect water and the watershed around the Lehigh Valley or make money. You can't have both."