Financing of Sewage Works in Pennsylvania

There are presented herein the experiences of several localities in Pennsylvania with respect to the financing of sewage works by the sale of authority revenue bonds. It is shown that this type of financing is practical when the municipality does not have the capacity or means to finance such projects with general-obligation bonds supported by tax funds. The interest rates of such revenue bonds indicate that the risk is not considered to be excessive. The resulting sewer-rental charges are reasonable; experience of collections of sewer rentals against billings has been satisfactory, and ample revenues have been collected to meet annual operating and fixed expenses.