The Kline-Banks-McAdoo Joint Sewer Authority is on the hook for $322,466.22, according to a court decision handed down Wednesday.
The Kline Township Municipal Authority sued KBM, Banks Township Municipal Authority, McAdoo Borough Sewer Authority and the three municipalities on Feb. 26, 2008, alleging KBM improperly calculated the amounts it owed under the agreement for 2004 through 2008.
Schuylkill County Judge John Domalakes already has ruled that KBM used the formula without the consent of each municipality, which was impermissible, the judge said.
On Wednesday, Domalakes ruled McAdoo is due the $310,567.22 it was seeking, and Kline Township is due the $11,899 it was seeking.
Domalakes issued a ruling Wednesday based on a hearing last week into damages owed because of the dispute.
Domalakes had ruled earlier that KBM incorrectly billed the treatment costs by a predetermined formula.
Banks Township Supervisor Charles Schalles - who doubles as the KBM and Banks Township Municipal Authority chairman - said the money owed could be paid by giving McAdoo and Kline Township credits. But he conceded while giving those credits, KBM would not have enough money to run its operation.
Schalles said a month ago if Banks Township loses the case, the people - through the authority - will be on the hook for between $80,000 and $100,000. On Wednesday, Schalles said he did now know how much Banks Township would owe.
Schalles said the rates were to be based on actual flow. Agreements signed in 2002 stated during the first year of operation, each municipality would be billed by percentage of ownership, and after the second year, by usage, Schalles said.
But after the first year, only Banks was connected to the system because Banks did not put in new sewer lines.
Schalles said the KBM board voted to extend the original agreement and pay on a percentage basis.
Three years later, Kline Township filed a suit because Banks did not follow the contract, and Kline wanted its money back for those three years. They paid based on percentage, because their flow was less than their percentage.
KBM has been billing since January 2009 on actual costs and actual flows.