2023 Budget Review & Approval Process
Our annual budget was adopted by LCA’s Board of Directors on October 24, 2022.
View additional details below.
To learn more about what’s included in LCA’s 2023 budget view our prior presentations to the Board:
- October 10, 2022 – draft budget presentation
- September 19, 2022 – preliminary budget presentation
- September 12, 2022 – review of 20223 strategic initiatives and other budget assumptions
Visit our 2023 Rate page to learn more about water and sewer rate changes that will be implemented on January 1, 2023.
The LCA 2023 budget was adopted by the Board of Directors on 10/24/2022.
LCA’s budget is divided into three basic funds: Allentown (City) Division, Suburban Water, and Suburban Wastewater. Within each budget, costs are further divided into operating units, internal service (overhead) categories, laboratory/support services, and capital expenses.
The Allentown (City) Division budget includes both water and sewer system expenses, both operating and capital expenses, associated with LCA’s operating lease of the City’s systems. These expenses are funded through water and sewer rates dictated by the 50-year lease agreement and charges to municipalities in accordance with inter-municipal agreements. Capital expenses are paid through a combination of operating revenues, borrowing, tapping fees, and contributions from the City for specific City-funded work.
The Suburban Water budget covers operating and capital budgets for all LCA-owned water systems and is funded through LCA’s water rates as well as through any additional borrowing that may be necessary to fund capital expenses.
The Suburban Wastewater budget covers operating and capital budgets for all LCA-owned sewer systems including collector systems, interceptors, and wastewater treatment plants. This budget is funded through LCA’s sewer rates to direct customers and municipalities, as well as through any additional borrowing that may be necessary to fund capital expenses.
Capital Plans 2023 – 2027
Our Board of Directors adopted LCA’s 2023 – 2027 Capital Plans for all service areas in May 2022. The $123.6 million plan includes both water and wastewater projects that will benefit more than 150,000 residents in 17 municipalities across Lehigh and Northampton counties, including the City of Allentown.
In the Allentown Division, capital funding comes in several forms, including some projects that will be paid for directly by the City of Allentown or American Rescue Plan Act funding allocation provided by the City. Other projects will be funded through borrowing LCA will manage, and costs recovered through rate increases as projects are completed.
LCA’s capital plan is focused on projects that will allow us to continue providing high-quality, safe, and reliable water and wastewater services to existing and future customers. Project highlights in the plan include the development of additional wastewater treatment capacity to meet future needs; upgrades at all of our water and wastewater treatment plants; and significant investments in our water and sewer system infrastructure to reduce leakage and enhance system reliability.
Future Board authorization will be sought to approve funding during the annual budget process and future project-specific and bond financing approvals.
Want to know more? Download a full copy of LCA’s Capital Plans: