Springdale Township and Harmar ink 20-year water contract

Springdale Township and the Harmar Water Authority signed off on a 20-year deal that eventually will cap increases at 3% each year for the township’s rate for bulk water.

The agreement “keeps the rate the same through 2024 and 2025, to $2.95 per 1,000 gallons that we’re paying now,” Commissioner Kenneth Igo said during a township meeting last week. “Then, moving forward, for the remainder of the 20-year term, they will increase with the rate of inflation capped at 3%.”

The Harmar Water Authority sells its water in bulk to Springdale Township, said Joe McCollum, operations administrator.

He estimated the authority serves about 800 customers in the township. It also provides water to Cheswick and parts of Harmar.

In Harmar, the authority serves about 1,000 homes and has a customer base of 3,200 people. Rates there vary and are set on a tiered system dependent on usage.

In Cheswick, the authority serves about 800 customers. Water is sold to the borough in bulk at a rate of $2.65 per 1,000 gallons. That contract lasts for 30 years and expires in the mid-2040s, McCollum said.

In 2026, Springdale Township will pay a rate of $3.05 per 1,000 gallons. Each following year, the township will be charged the rate from the prior year, plus the annual rate of inflation, capped at 3%.

Igo said the rate is cheaper for the township than it would be if it bought water elsewhere.

“It allows the township to get locked down at a good rate for a while,” Igo said.

Springdale Township has been a customer since about the 1970s, McCollum said.

McCollum said the 20-year deal provides stability for the authority and the township.

“It helps with budgeting purposes,” he said.