MAWC water rates unchanged in new budget set for approval in January
Water rates for Municipal Authority of Westmoreland County customers are expected to remain unchanged during the 2022-23 fiscal year.
A preliminary budget unveiled this week calls for the authority to retain its rate structure even as inflation has raised the costs associated with routine repairs and other upgrades planned for the upcoming year.
“This will be our fourth year in a row we haven’t had a rate increase,” said board chairman Randy Roadman.
The authority sells water to more than 122,000 customers in Allegheny, Armstrong, Fayette, Indiana and Westmoreland counties. It also provides sewer service to nearly 30,000 customers.
The proposed $107 million budget includes slight increases in revenues and expenses but none that will require higher water rates, officials said. The board will hold a final budget vote Jan. 19.
Inflation has impacted the authority’s buying power as the costs for pipes and other supplies have increased in recent months. The price for some pipes has increased by as much as 50%. Other expenses, such as fuel and supplies, also have increased, authority business manager Brian Hohman said.
About $8 million has been set aside in the proposed budget to pay for capital improvements.
“We may only be able to get less done (because of the inflated supply costs),” Hohman said.
Authority officials came under fire after a series of rate hikes totaling 39% were enacted between 2015 and 2017. Those increases, in part, cover debt on more than $150 million in borrowing taken out to pay for upgrades to the water distribution systems and to replace antiquated infrastructure.
Hohman said about $58 million from that loan remains in the bank but is expected to be used to pay for projects in 2022 that are already in the planning stages.
Authority board members on Wednesday authorized opening a $30 million line of credit with First National Bank to pay for unexpected repair work over the next year. The authority will pay $10,000 to have the credit at the ready if needed.
“This is our opportunity to have an insurance policy,” Hohman said. “We have no plans to access it.”
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Rich Cholodofsky is a TribLive reporter covering Westmoreland County government, politics and courts. He can be reached at rcholodofsky@triblive.com.
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