Residents expressed frustration with new sewer bills that include the 2008 rate hike and a new quarterly charge at Monday's council meeting.
Resident Karyn Zunich said Penn Hills needs to get help from Washington, D.C., because Penn Hills has a 47 percent elderly population that can't even afford to buy food and prescriptions.
Council approved a rate increase from $8.38 to $10.07 per 1,000 gallons used and a $30 quarterly service charge for 2008. Numerous residents have called and visited the municipal building to complain.
Resident Cynthia Riddle said her quarterly sewer bill is $300 and her water bill is $60. She said she wants a payment plan from Central Tax Bureau, the billing agency, but such a plan is not available.
Resident John Ziegler told council he doesn't understand why Central Tax is claiming his newest bill is for the first quarter of 2008, even though it is based on November, December and January usage.
Central Tax is always one cycle behind on water bills and the quarters never line up with the water bills, said Diane Fitzhenry, municipal deputy clerk.
When the water authorities take over billing, water and sewer bills will be combined into one quarterly statement, she said.
Oakmont Water Authority is taking over sewer fee collection from Central Tax this month and Wilkinsburg-Penn Joint Water Authority is expected to start sewer fee collection this summer for its Penn Hills customers.
Ziegler said he needs a payment plan because he lives on Social Security.
His sewer billing will switch to Oakmont Water Authority, which doesn't offer a payment plan.
Resident Jane Loney also wants a payment plan from Oakmont Water Authority.
The municipality should have warned residents in January, instead of March, that their water and sewer fees would be combined into quarterly bills in April, she said, adding that a grace period is needed to pay the Central Tax first-quarter sewer bill.
Central Tax will resend first-quarter bills because it erroneously billed residents based on the new 2008 rate and the $30 quarterly service fee. Residents who already have paid their bills will receive a credit for the second quarter, said Mayor Anthony DeLuca Jr.
Council increased the sewer rate and imposed the quarterly fee because Penn Hills needs to reduce its $91 million in sewer debt, which will take 20 years to pay off, said Rick Minsterman, municipal engineer.
The debt came from $60 million in repairs to the sewer system that Penn Hills was required to make under a federal consent decree, he said.
Previous administrations refinanced the sewer debt several times to avoid increasing sewer rates, but Penn Hills cannot refinance the debt again, Minsterman said.
Penn Hills has been required to repair the sewer system piecemeal because the consent decree requires individual repairs instead of fixing an entire line, DeLuca Jr. said.
With the 2007 sewer rate, Penn Hills no longer could absorb the Alcosan fee included in local sewer bills, manage the sewer system and reduce the sewer fund debt, he said.
Bonnie Brimmeier, municipal solicitor, said she is confident Penn Hills will be freed from the consent decree soon because the municipality is in negotiations with the federal government.
Council held three budget hearings and two town meetings to receive residents' input on the budget and sewer rate increase, DeLuca Jr. said.
Residents complained that the $30 quarterly service fee is unfair.
The mayor said council would have had to increase the sewer usage fee to $12.50 per 1,000 gallons used or raise property taxes by 2.5 mills if it didn't impose the quarterly fee.