2024 Budget Review & Approval Process
The 2024 Budget was approved by LCA’s Board of Directors on October 23, 2023. View details and information below.
To learn more about what’s included in LCA’s 2024 proposed budget view the draft budget and our presentations to the Board:
- LCA 2024 Budget – FINAL BUDGET
- LCA 2024 Budget – Executive Summary
- October 23, 2023 – presentation of final draft 2024 budget summary for Board approval
- October 9, 2023 – presentation of proposed 2024 budget
- September 18, 2023 – presentation of preliminary 2024 budget
- September 11, 2023 – presentation of 2024 budget assumptions
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 2024 – 2028
Our Board of Directors adopted LCA’s 2024-2028 Capital Plans for all service areas in October 2023. The $261 million plan includes both water and wastewater projects that will benefit more than 200,000 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 technology upgrades; small system upgrades; system planning and studies; water metering upgrades; major water facility upgrades; major wastewater facility upgrades; water main replacements; annual maintenance and rehabilitation projects; sewer wet-weather projects; regulatory-driven projects, such as lead service line replacement and PFAS-related projects.
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: