Butler, Butler Township leaders share plans to address pressing needs, then save most of BASA sale money
Butler and Butler Township officials say they will address a handful pressing needs for their respective communities before investing the remainder of the combined $230 million that they split evenly in the recent sale of the Butler Area Sewer Authority.
Officials of the two central Butler County municipalities signed agreements last week finalizing the sale of BASA to Pennsylvania American Water and pivoting conversations, which were about whether or not courts would approve the sale, toward its financial impact on the city and township instead.
After the municipalities spent about $40 million of that money to pay off the authority’s debts and liabilities, they each received their remaining shares of the money last week.
“For the longest time, we haven’t been able to do things or we’ve had to find creative ways to finance things through grants and loans,” said Butler Mayor Bob Dandoy, “but now to have those resources at our fingertips, it’s going to be great day for Butler.”
He said the city plans to put that money into a separate account, which will eventually be overseen by a board of trustees.
At a news conference featuring local officials and Pennsylvania American Water officials on Oct. 29, Butler Township Commissioner Jim Lokhaiser said the township plans to first use the sale money to pay off the remaining $1.3 million the township owes for its municipal building.
The township then plans to bank the funds, according to Lokhaiser, township commissioner chairman.
“That worked out very well,” Lokhaiser said. “This money is going to help long-range to get things done.”
Township manager Tom Knights said the payoff was happening this week, which Lokhaiser said will help cut down on the interest owed on the building.
Butler City Council has already voted to put some of the money in an account with NexTier Bank, and placed the rest of the money into an account with PNC, where the main body of the trust will be.
Dandoy said the trust account will build interest on the initial deposit, which the city can draw from for years to come. While the city plans to create a trust board to oversee the money in the account, Dandoy said city council has set its sights on a few overdue projects, namely parking-related, including the Tier Parking Garage and Butler’s paid parking system.
Immediate plans for the BASA sale dollars
In the City of Butler
Changes to the Tier Parking Garage and the Butler’s paid parking system
A project to upgrade the city’s sidewalks
Upgrades to Father Marinaro Park
In Butler Township
Paying off the remaining $1.3 million the township owed for its municipal building
Maintenance on the pond at Preston Park
Completion of an athletic complex in Pullman Center Business Park
SOURCE: Butler city and Butler Township officials
After forming the trust board, Dandoy said the council will have to get approval from the trust to use funds from that account.
“We’re redoing, upgrading our parking system, converting to kiosks rather than the old meters, which are breaking down, can’t even find parts for,” Dandoy said. “We’ll talk about the Tier Parking Garage; we’ll find out how much we need, then we’ll go and say, ‘We need X amount of dollars.’”
Aside from parking projects, Dandoy said the city will embark on a project to upgrade the city’s sidewalks and implement upgrades to Father Marinaro Park — two projects that are more affordable thanks to the BASA sale.
Butler Township’s tentative projects include the completion of an athletic complex in Pullman Center Business Park and maintenance on the pond at Preston Park, which has a dam in need of repair and a floor that needs to be dredged. Lokhaiser commented that there is about 4 feet of silt in the pond, and it will involve several state agencies to work on.
Butler and Butler Township administrators will soon discuss their budgets for the upcoming year, with township commissioners having a budget meeting the evening of Nov. 14. Lokhaiser said the township will talk more about the use of the funding at that meeting.
Dandoy said council will discuss further use and placement of the BASA funding at future meetings, but the availability of millions of dollars is a game-changer for the city’s financial planning.
The newly sold sewer system serves more than 15,000 customer connections across Butler; parts of East Butler; and portions of Butler, Center, Connoquenessing, Summit and Oakland townships.
