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BASA sets bond sale to get funds

Upgrade, tank plans advance

Butler Area Sewer Authority knows it is getting more than $18 million in low-interest government loans.

Now it has to come up with its match to pay for the seven stormwater storage tanks it must build within the next year to comply with a state Department of Environmental Protection consent agreement.

Tuesday, the authority board discussed its upcoming bond issuance of about $19 million. The Internet bond sale could happen Thanksgiving week or early December.

The $18.2 million in loans the authority is getting from the Pennsylvania Infrastructure Investment Authority has an interest rate of 1.4 percent for the first five years and 1.9 percent for the remaining nine years.

“We’re getting such a good rate. It’s really going to help us with these projects,” said Jerry Patterson, board chairman.

The bond sale will cover the authority’s part of the tank project, as well as the $1.7 million needed for an energy upgrade to BASA’s sewage plant and office building on Litman Road in Butler Township.

The authority approved the Johnson Controls plan to renovate and upgrade the plant’s blowers, security, lighting, ceilings, thermostats, and the boiler in the administration building.

These projects will begin right away.

Johnson Controls guarantees $660,000 in energy savings and $2.2 million in operational savings during the next 15 years.

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