Pennsylvania residents blast 65% water rate hike as city eyes $3.4 million for tax cuts

A sharp increase in water bills is about to take effect in northeastern Pennsylvania, and many residents are furious over who will shoulder the cost — and who stands to benefit.

A 65% rate hike for Hazleton City Authority customers began Saturday, Aug. 1, a move that prompted accusations that one community's tax relief is being built into everyone else's water bills, according to WVIA.

What happened?

The local board approved the increase on Tuesday, July 28, with a narrow 3-2 vote. 

Chairman Joseph Zeller joined board members Patrick Fay and Peter Andrasko in support, while Vice Chairman John Keegan and board member Michael DeCosmo Jr. voted against it.

The increase extends across the authority's regional system, affecting residential, business, and municipal customers in Hazleton as well as customers in parts of 13 nearby municipalities.

Authority Director of Operations Scott Burkhardt said the utility invested about $35 million in system work over the past five years, including water mains, storage, pump stations, wells, treatment facilities, and other infrastructure. 

He added that monthly Pennsylvania Infrastructure Investment Authority loan payments rose from roughly $50,000 to about $500,000 as repayment came due, according to WVIA.

"There are a lot of factors that go into the rate increase," Burkhardt told attendees. "It's not just that the water authority wants to raise rates."

Much of the backlash, though, is tied to where part of the money will go. 

Officials said Hazleton is set to receive roughly $3.4 million each year for a decade under the agreement, and city leaders plan to use some of it to lower property taxes for homeowners.

Why does it matter?

For many residents, the frustration centers on the idea that a basic necessity is being used to address a political and financial issue.

Water service is not optional, and a 65% increase could quickly strain household budgets, particularly for renters and lower-income families already dealing with rising costs.

According to WVIA, Keegan said people outside the city would be paying toward an advantage reserved for Hazleton residents.

"This agency is not an agency of the City of Hazleton," he said. "This is an independent agency of the Commonwealth of Pennsylvania."

Rossanna Gabriel, the executive director of the Hazleton Integration Project, warned the effects could reach beyond water bills themselves. 

She said landlords might pass the added cost on to tenants, increasing pressure on families already under strain, and the authority's regional customer base has pushed the anger far beyond city limits.

Packer Township Supervisor Sue Ann Gerhard told the board members who voted yes: "Shame on you."

What's being done?

The authority says the rate hike is meant to keep the water system operating safely and reliably.

Burkhardt said the extra money would go toward upkeep, loan obligations, water quality testing, fire protection, and the system work needed to maintain service as demand rises.

He cited a nearly $19 million Route 940 water main replacement project that stopped leaks estimated at about 300,000 gallons a day. He also said more filtration, reservoir, and source-water work is still needed, so smaller hikes later could remain on the table.

Residents, meanwhile, are calling for greater public accountability.

WVIA reported that public-process concerns also surfaced at the meeting. 

City resident Ashley Bahrt said online participants did not get a real chance to speak before the vote, while Hazleton resident David Dominguez faulted officials for providing too little advance explanation.

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.