MABL votes to repeal resolution enacted Monday

Board cites need to have improvement funds available

LEWISTOWN -- During a brief special meeting Friday, the Municipal Authority of the Borough of Lewistown Board of Directors voted to repeal a resolution enacted at Monday's special meeting that sought to have Lewistown Borough take over the authority's debt for the purpose of refinancing.

The board's discussion centered around the need to have funding available for MABL's capital improvement projects. Under the resolution, it seemed as though MABL would have been forced to seek approval from Lewistown Borough for any expenditures.

Engineer Pat Ward said there was some "miscommunication with what was going on" at Monday's meeting.

"There's this interest in having the existing debt of the authority refinanced through a new bond issue using the borough's bonding capability and that was the action that was taken at the last meeting," Ward said. "However, a missing part of that was there needs to be a mechanism for the authority to access funds for capital projects and that action overlooked that requirement, basically, is what it amounted to."

Ward then said that was the primary purpose of the special meeting.

"I think at the end of the day, we realize that there needs to be substantial funding on hand and available for pending infrastructure needs, as well as any emergencies that should arise," board chairman Ben Rager said.

Executive director Craig Bubb cited several projects including the Valley Street project in Lewistown that requires working with the Pennsylvania Department of Transporation and a potentially state-required project to increase the capacity of the Laurel Creek Dam spillway in Armagh Township.

"We may have to do something, and we estimated it at $15 million 10 years ago," Bubb said of the spillway project. "Even if we can get away with doing something substantially smaller, it's still going to be a huge capital project."

The board considered whether a specific dollar figure for funding would need to be decided Friday, but the board tabled having a number until the next regular meeting, which is scheduled for April 21.

Solicitor David Gaines said he believed there to be a scheduled phone call on Monday between bond counsel, the Lewistown Borough solicitor and a fellow attorney from Gaines' firm, David Consiglio, to discuss what board member Frank Berrier termed "the mechanics of this."

"I think 'mechanics' is they key word," Gaines said. "I don't think they're at the point of talking numbers but they need to see when the parties can get on the same page conceptually."

"This board should have a say in how that's going to happen because we're the one's that's gonna pay the bill and when we pay it," Berrier said of how the refinancing should be structured.

"The gentleman from Derry Township, he had some good questions last (meeting)," Berrier said. "We have to be able to respond to these people and in an orderly fashion. We can't be vague about it."

The vote was 4-1 with member Barry Bargo voting in opposition. During his vote, board member Jeff Rocco, appearing via Zoom, again chose to sharply criticize the board members who voted in favor of the resolution on Monday.

"I continue to be against any borrowing and refinancing through the borough," Rocco said via Zoom. "This is a total sham. This entire meeting is a sham."

When Rager asked Rocco if that meant he was voting in opposition to repealing the resolution, Rocco quickly corrected him.

"No, that's not a 'no,'"Rocco said. "I'm definitely -- if you wish to pull that resolution, that's fine with me. But I'm against any resolution that's gonna follow through with your actions, and I consider them unethical actions, looking out clearly for the Borough of Lewistown."

It remains unclear what the borough will be permitted to do as it pertains to MABL's finances as a lawsuit involving the borough in reference to MABL is pending a decision by Senior Judge David Grine of Centre County.

MABL initially sued the borough, but withdrew from the suit earlier this year after borough council appointed a new member to the MABL board, a borough employee. The Pennsylvania Municipal Authorities Association, of which MABL was previously a member, has asked to continue the suit, and Grine said in March he would rule on that request.

Mifflin County Municipal Authority, formed with the intent of replacing MABL, also has a request pending in court to enforce the Memorandum of Understanding approved by all municipalities that are part of the water system, including Lewistown Borough.

The state legislature is also considering a bill that would require authorities serving more than one municipality to have all municipalities represented on their boards. State Rep. John Hershey (R-Mifflintown), whose district includes Lewistown and four other municipalities serviced by MABL, has said he supports such a move. House Majority Leader Kerry Benninghoff (R-Bellefonte), whose district includes the other three Mifflin County municipalities serviced by MABL, has indicated he will get behind the bill if it reaches the House floor.