LEWISTOWN — The Board of Directors of the Municipal Authority of the Borough of Lewistown on Friday conditionally passed a memorandum of understanding with Lewistown Borough that would allow the board to include representation from all municipalities MABL currently serves.

In exchange for allowing the new so-called “county” water authority, the authority would provide a one-time payment of $1 million to the Borough of Lewistown and would make 30 annual installment payments, which would nominally increase. Between the lump sum and the 30 payments, the amount the reorganized authority would pay the borough would be approximately $13 million.

The passage, by a 3-2 vote, is conditioned upon resolving a pending dispute about the wording of a payment clause in the memorandum. MABL said the clause, as currently written, would require the authority to make 31 annual payments to Lewistown Borough instead of the agreed-upon 30.

The revised memorandum will be presented to Lewistown Borough Council at its regular monthly meeting on Monday evening.

During the meeting, board member Frank Berrier stated he wanted to know MABL’s value, as determined by a recent draft valuation. Solicitor Tim Searer advised Berrier it is in MABL’s legal interest to wait until that process has concluded before disclosing that information.

MABL revealed it would engage in a bond issue to couple with existing reserve funds to pay Lewistown Borough, pay off existing debt and finance regular infrastructure projects and upgrades.

Berrier also objected by asking several times how this would affect MABL customers’ water rates. Berrier was told by MABL Executive Director Craig Bubb and others the bond issue itself would be revenue neutral and, therefore, would not affect water rates.

The MABL Board of Directors is next scheduled to meet at 1 p.m. Wednesday. Bubb said information on how to attend the meeting virtually will be posted on the MABL website, www.lewistownwater.com.