Borough to Raise Sewer Rates

The Council voted to raise sewer rates nine percent starting in October to offset lost revenue from the Pfizer site Wednesday night.

.  Pfizer signed an agreement to pay for sewer usage regardless if their West Chester site was up and running.

The borough has filed a lawsuit against Pfizer and further litigation is pending.

The nine percent increase should net the borough $200,000 in extra revenue for the year, but it still does not cover the $800,000 hole left in the budget by Pfizer.

“This is not the end of this,” said borough council member John Manion.  “As this heads into litigation we’ll have to come back and figure out a way to make up $800,000. “

Council member and board chair John Manion said in a July committee meeting that the company agreed to pay the fees "in perpetuity, but they have since reneged on that and counter sued on back payment."

Back in April, the pharmaceutical company sued the borough for having to uphold the payments regardless of its closed facilities on South Bolmar Street.

The borough also brought a lawsuit against the company.

“Rate increases are inevitable,” he said. “These increases are going to have to come.”

In a July committee meeting Manion said Pfizer didn't pay for three quarters of what they owe in 2012—which amounts to $600,000—and announced the $800,000 for 2013 will also not be paid.

Taxpayers will have to make up the 18 percent loss, he said.

"We won’t be able to rectify the situation [with Pfizer] for three years," he added. "Unfortunately, in a nutshell, they have forced us into this situation."