More than 11,000 customers of the North Huntingdon Township Municipal Authority may see a sewage rate increase reflected in next month's bill.

During a workshop meeting last week, the authority's board of directors approved a proposed $6.9 million operating budget for fiscal year 2009 that includes a likely $2-a-month increase for residential and commercial customers, which would take effect today.

Projected expenditures include operating costs of $4.2 million, non-operating costs of $1.6 million and $1 million for capital projects. The spending plan is about $700,000 higher than the fiscal year 2008 budget, which ended yesterday.

The board will review the proposed budget and is expected to adopt the new rates and associated fee schedule at its meeting Wednesday. The rate increase would be retroactive to today.

"The board has few options," said authority General Manager Kate Petrosky. "The need for a sewage rate increase is driven by an uncertain economic situation.

"Just like any homeowner in the township, our costs for gasoline and diesel fuel, health care and general supplies required for treatment keep increasing."

She pointed out that the board did not increase sewage rates last April to support the 2008 budget.

Residential customers are billed per Equivalent Dwelling Unit and commercial customers are billed on water consumption per EDU. The current total of EDUs is 12,562, according to NHMA figures.

If the proposed spending plan stands, residential rates would increase to $38.20 per month, $114.60 a quarter and $458.40 annually. NHMA bills residential customers quarterly.

A discount of $22.72 is proposed for annual payment.

The proposed new monthly commercial rates are $38.20 based on 4.200 gallons of water used per EDU and $114.60 quarterly based on 12,500 gallons of water used per EDU. The NHMA bills commercial customers monthly and quarterly.

The Western Westmoreland Municipal Authority provides sanitary sewer service to about 6,000 NHMA customers. WWMA, which operates on a calendar year basis, did not increase its rates this year.

Residential and commercial tap-in fees are unchanged.

Developers or residents will be charged $2,500 for a residential tap-in. The commercial fee is $2,500 for the first EDU and $2,420 for each additional EDU.

Associated fees effective today are: saddle, $176; home sale inspection, $155 (includes dye test and televised lateral inspection); dye test, $50; no-lien letter, $29; water shut-off, $10, and restore service, $10.

Lateral line inspections

An authority policy requiring inspection of private sewer lateral lines before a home sale or refinancing took effect today.

A $155 fee will be charged for camera inspection of a lateral and dye test. If deficiencies are found, homeowners must make repairs before a sale or refinancing can be completed.

The authority had a town hall meeting Tuesday with 70 Penns Woods homeowners to explain results of an inspection of private laterals on some streets in their development, including repair or replacement options.

Residents Brian and Julia Cutrillo challenged the new policy, fearing it could delay a scheduled May 15 closing of their home sale.

Ms. Petrosky said details of that policy were in media reports and the Penns Woods newsletter in February.

She referred to results of 76 inspections of laterals. Only seven passed, while 15 had Level 2 minor deficiencies, 24 had Level 3 problems, 23 failed with Level 4 (major) problems, and seven failed with Level 5 (severe) deficiencies.

Another 42 laterals were inspected in the Niagara Drive area, but Ms. Petrosky said results were not released because new main sewer lines are being installed.

Homeowners with Level 2 and 3 deficiencies have five years to make repairs. Those with Level 4 and 5 problems have one year to repair or replace laterals.

Authority officials estimate the lateral replacement cost at about $4,000.

NHMA has $105,000 of a township federal Community Development Block Grant available to assist affected homeowners on an income-eligible basis.

Mrs. Petrosky said 15 affected homeowners have applied for grants.