The Coplay-Whitehall Sewer Authority's annual report is released every April. Principals from various outside agencies submit their reports to the board and evaluate the overall performance of the authority. All of the companies involved in the review have a long association with CWSA, but they are required to ensure that the authority adheres to regulations and rules that govern daily operations.

John Barry, partner with Brown and Brown Insurance, addressed insurance needs and future concerns. Barry considers the authority's assets adequately insured.

"The insurance coverage is about 5 percent higher than the appraised value," he said.

Insurance covers mainly CWSA's headquarters building and its contents. The replacement value is $4.6 million.

"We show a loss ratio of 13.3 percent of the premium," he said.

A low loss ratio allows the remaining premium dollars to be invested in approved securities, which helps to keep future premiums low. Barry did express some concerns primarily around the Affordable Care Act, President Barack Obama's health care insurance mandate.

"Many customers granted a subsidy will no longer be eligible," he said. "The increase in costs will have a big impact on their take-home pay."

Barry estimates that around 4 percent of health care-paying customers remain the same from year to year,while 96 percent change. Most rate payers are unable to assess the amount of the change until they file their income tax returns.

Jeff Dobeck, a partner with Buckno Lisicky & Company, P.C., addressed the financial audit.

The authority received an unqualified opinion. In the auditing world, an unqualified opinion is the highest rating. There are no qualifications that impact the report, and the auditors consider the authority to be financially sound.

In the financial report, the authority shows cash or equivalents of $3.9 million. The total sewer system carries a value of $29 million, with long-term debt of $10 million. Although the authority is in good financial shape, Dobeck addressed changes in accounting rules in 2015.

"Changes in government accounting requires that pension liabilities be included in the financial report for year-end 2015," he said.

According to Dobeck, the CWSA's pension fund is 90 percent funded, a better position than many similar agencies. Unfunded liabilities are required reporting to give yet another reason to raise taxes and revenues.

Dobeck commented on a decision by the board on a payment due CWSA from Allentown. Allentown made mistakes on billing CWSA for sewage treatment. Rather than collect the payments from Allentown, the board used the agreed payment amount to pay down existing indebtedness allocated to CWSA for capital improvements. The arrangement avoided a financial problem for Allentown.

Attorney John Stover noted that delinquent accounts are down from the prior year and there are no outstanding litigation issues.

CWSA is under an EPA mandate to reduce inflow of rainwater into the sewer system. Reducing clean water infiltration reduces costs to rate payers because rain water does not need treatment as a waste product. Rain water is naturally filtered as it passes through the ground to the aquifers.

As part of the mandate, CWSA has inspected 8,653 residential homes or 83.9 percent of rate-paying customers. All municipalities that send water to the Allentown Waste Water Treatment Plant are under the same mandate, but CWSA is far ahead of the others in completing the EPA requirements.

Darryl Jenkins, the authority's engineer from Spotts, Stevens and McCoy, commented on the authority's progress in several major projects. The future is less hectic than the major projects completed in 2014. Future projects include revamping metering facilities and work on Front Street in Coplay. The authority has maintained an existing relationship with its engineering partner for 30 years.

During its regular meeting, the board took action to join the Pennsylvania Rural Water group. According to board member Joseph Marx, the group is closely aligned with smaller communities served by water and sewer authorities and have concerns similar to those encountered by CWSA.