Dissolving the long running authority was proposed by Borough Manager Dave Hazlett in November as finding volunteers to fill the board was proving challenging and the Authority’s original purpose has since become outdated.

The Authority is responsible for the long-range public sewer and water facilities planning goals of Carroll Valley. When the sewer and water authority was created in the 1970’s, municipalities had very limited borrowing power and the way to get around that was to set up ‘authorities’ that on paper had tangible property that they could take loans out on. However, times have changed, according to Hazlett, and municipalities like Carroll Valley can now easily borrow money, or see bonds to cover operating costs, he said. Carroll Valley has a legal ‘lease back’ agreement with the authority, whereby the authority owns the sewer plant, piping and lines, and the collection system, and leases them all back to the borough.

"Borough staff operates everything and all the money from customers, as well as bill paying is being handled by the borough staff," he said, adding "the authority doesn’t have any real employees, just a volunteer Board."

Dissolving the authority reverts ownership of the sewer system back directly to the Borough which will then be wholly responsible for all aspects of the operation.

Dissolvement would eliminate the current confusing leaseback operations, as well as streamline the application process for future funding needs, according to Hazlett.

Dissolving the authority in no way discounts the efforts put in by volunteers who run the authority, Hazlett said, "Everyone that has served has done a wonderful job."

The creation of a new Sewer Committee would involve the same people with "just with a different fiscal structure," Hazlett said. The Authority’s chair was understanding of the borough’s dilemma and looked forward to hearing what the council’s next steps would be, Hazlett said.

The council will next have to go through a process required by the Municipalities Authorities Act, according to borough solicitor Zachary Rice.

"There are essentially winding down procedures that would need to be required," he said.

A number of logistical matters need to be ironed out in order to dissolve the Authority, including outlining procedures and establishing a formal ordinance, "Essentially agreeing to take on the project of the Authority," Rice said.

As the Authority is preparing to put another larger project out to bid soon, "Time is of the essence…We just have to make sure we go through the right steps," he said.