Greater Johnstown Water Authority gets state low-interest loan for sewer work

Oct. 22—JOHNSTOWN, Pa. — Greater Johnstown Water Authority has received an approximately $7 million low-interest loan to do the final phase of the citywide sewer system remediation project.

The money will be used for miscellaneous work that still needs to be completed, following years of neighborhood-by-neighborhood construction, as part of meeting the requirements of a consent order with the Pennsylvania Department of Environmental Protection.

"We are grateful to receive the $7 million loan from PennVEST," said Melissa Radovanic, assistant manager of commercial, distribution and collections for RDM, which manages the GJWA. "Both PennVEST and the Greater Johnstown Water Authority have a strong working relationship.

"This loan will be utilized for the final phase of the sanitary sewer separation project, which is the culmination of work in order to comply with the DEP consent order. This final phase of the project will begin in the spring of 2022 and be completed in (the) spring of 2023."

GJWA's sewer project was selected as part of a competitive statewide funding process.

"Those (loans) aren't guaranteed, either," said state Rep. Jim Rigby, R-Ferndale, from the 71st Legislative District.

"I'm glad to see that they were approved, they were able to get those monies."

The water authority, which owns the sewer system, is required to reduce the flow to 625 gallons per day per equivalent dwelling unit or less by Dec. 31, 2022, in order to comply with the DEP agreement.

GJWA purchased the sewer lines from the City of Johnstown in 2020 for $24 million and the assumption of all obligations, specifically the consent order, and debt associated with the project.