We, the Malvern Voting Residents, strongly oppose the proposed 10.5% increase in sewer fees. We urge the MBC to reject any increase for the 2025 sewer rates, as there is no compelling rationale for such a hike.

The proposed 2025 sewer budget includes arbitrary increases, fails to recognize one-time, non-recurring expenses, and assumes maximum costs for the VFSA projects from 2025 to 2030. This is despite VFSA’s statement that these costs should be offset by state and county grants.

We believe it is crucial to reconsider this proposal.

Sewer expenses are to be paid for out of two sources: our sewer fees, and a reserve fund called the Sewer Capital Reserve. Typically, the Sewer Capital Reserve has been more than $1 million in the annual budget. Council member Amy Finkbiner, who has done the lion's share of work on this year's Borough budget, because nearly the entire Administration quit due to this Council’s mismanagement, has cited the fact that the Sewer Capital Reserve is expected to dip below $1 million in the 2025 Budget as necessitating an increase in the sewer rate.

That's simply not true, for several reasons:

1. Disposal fees (i.e., the fee the Borough pays to discharge our sewer waste) have historically been at or under $400,000 ("$400K") per year. In drafting the 2025 budget, this figure was increased to $450K. $450K was used as the estimated figure for disposal fees in the 2024 Budget, but actual disposal fees still came in at $400K, as usual. Apparently the $450K estimate was used on the rationale that disposal fees might increase, but to date there is nothing of the sort on the immediate horizon for 2025. Other expenses were also significantly increased, partly because this Council had to offer higher salaries to re-staff the administration as working for the Malvern Borough was not desirable to candidates. Keep in mind that the 2024 Sewer Budget came in about 20% below the estimate, showing that Council’s budget forecasting has historically been very inaccurate.

2. The 2025 Budget shows about $375K of one-time, non-recurring maintenance items for the Borough sewer system. These items had been scheduled to be done in 2024, but were not done. To date, there is no indication that all, or any, of these items must get done in 2025 (though of course maintenance tasks should not be postponed indefinitely). However, none of the presentations that have been made by Council to the public during the 2025 budget process, ever asserted that any or all of these maintenance items must be done in 2025.

3. The Valley Forge Sewer Authority ("VFSA"), which ultimately treats Malvern's sewage, is mandating that all the municipalities who use VFSA must pay for needed projects. Pursuant to a long-standing agreement, each Borough is committed to pay a specific share of such expenses; Malvern Borough's percentage is 4.87%. For 2025 the amount Malvern owes the VFSA is $150K and the dollar amount VFSA requests from Malvern has been going up in recent years. However, it was recently learned that VFSA is applying for state and local grants which will offset a portion of the costs. Thus, it is far from clear right now that Malvern will need to pay $150K for VFSA expenses in 2025, and the exact amount of expenses for future years cannot be determined. Yet the Preliminary Budget presumes that the maximum amount will be owed 2025 through 2030.

4. It is true that, based upon current budget figures, the Sewer Capital Reserve Fund will dip down to just below $1 million in 2025. However, the 2024 Sewer Reserve Amount was projected to be under $1M, and Council did not find that to be a problem. In any event, if disciplined budgeting practices are followed, both reserves (Sewer and General Reserves) should start increasing in 2026. In the case of the Sewer Reserve it should increase significantly starting in 2026 with no tax increase!
In short, because the above factors do not show that Malvern's 2025 disposal fees will be higher than they were for 2024, there is no reason to increase the sewer rate. Moreover, if sewer expenses turn out to be higher in 2025, it is possible to change the budget (and the sewer rate) at that time if necessary (which we strongly doubt). Council should not simply assume that Borough sewer disposal fees will be higher in 2025, nor maximize payments that will be owed to VFSA (especially when grants will reduce the burden), in order to justify a sewer rate increase.

Our group, Concerned Malvern Residents, has tried to voice these concerns multiple times to Council by sending Borough Council emails and by making public comments at Borough meetings. We have been shouted down and disparaged by Council and our emails have been ignored.

This is wrong. It amounts to “Taxation without Representation” or, as we would say in the twenty-first century, “Being taxed without a voice.”