MABS Q&A: How much does borough make from MABS, possible sale

KAYLEE LINDENMUTH / SHENANDOAH SENTINEL FILE – The Municipal Authority of the Borough of Shenandoah office and treatment plant in Raven Run.

SHENANDOAH – The Pennsylvania Economy League, the organization advising the Borough of Shenandoah regarding the potential sale of the municipal authority, is continuing their Q&A initiative, and has provided another set for publication.

Questions can still be submitted via an email address has set up, [email protected], and it is expected that answers will be provided weekly.

The question-and-answer initiative is part of the ongoing effort to engage and inform the public about the potential sale of MABS to Aqua Pennsylvania, a private water company based in the Philadelphia area.

As part of the public engagement effort, two public hearings will held on Oct. 19 and Oct 26 at 7:00pm at the Shenandoah Area Senior Citizens Center on North Market Street. As a result of the coronavirus pandemic, in-person attendance will be limited, though the hearings will be broadcast via Zoom.

The following are the answers to submitted questions, published as they were submitted to the Sentinel.

Question: What profit revenue amount (or loss) did MABS earn for the Borough of Shenandoah over the last 10 years?

Answer:  The Borough is supposed to receive $7,500 per year from MABS for use of certain Borough property; so over 10 years’ time that would amount to $75,000.  No profits or indirect overhead is paid by MABS to the Borough.

Question:  What is the amount of profit the Borough of Shenandoah will make from the sale of MABS to Aqua (after paying off the  debt)?

Answer:     The Borough expects to net approximately $6.0 – $6.5 million after paying off the MABS debt. 

 In addition, the Borough will begin receiving the revenue from the cell towers and wind turbines.   After the sale, those revenues to the Borough are expected to be $13,800 per year until 2023, and thereafter $15,870 per month for the cell tower.   For the wind turbines, we don’t have the contract on hand but MABS’ books and records indicate the following amounts paid to it for the wind turbines from 2010 through 2017 ranged from a low of $95,550 per year to a high of $100,328 in 2017.  Budget documents reviewed lead the Borough to conclude that the amount it would receive if it sells the water assets would exceed $100,000 per annum.

About Author