Municipal Authority water rates to remain steady in 2019-20 budget
Water rates for Municipal Authority of Westmoreland County will remain steady for the first time in four years.
Authority board members on Wednesday unanimously approved a new $110 million budget for the 2019-20 fiscal year, which will start in April, retains the current water rate structure for the utility’s 120,000 customers in five counties.
“All of our construction is still being covered by our previous borrowing. I see no need for any rate increase in the near future,” said authority board Chairman Randy Roadman.
The authority has come off three consecutive years of rate hikes, totalling a 39 percent increase for customers. Officials imposed those increases to pay off debt associated with $150 million in borrowing for infrastructure upgrades.
Authority officials said those projects, which are ongoing, were initiated at a time when the interest rates to borrow money was lower and, as a result, spared customers further rate hikes.
“The board borrowed money at the right time,” said authority business manager Brian Hohman.
The average water customer will pay about $46 each month for service, officials said.
The budget relies on about $6 million in additional revenue from the previous year. That increase includes what officials predict will be a boon in royalties from natural gas wells leased on authority property. The authority earned about $4 million in royalties the previous year, a figure that is expected to increase to about $7 million over the next 12 months.
Money generated from water sales also is expected to increase by $2 million, mostly attributed to the opening of the Tenaska Westmoreland power station in South Huntingdon, Hohman said.
The balanced budget reflects revenues from water sales to be about $83.4 million next year while the authority’s sewer service, provided to about about 26,000 customers, is expected to generate $16 million. Additional revenues through gas royalties, leases and other projects will account for the remaining $10.9 million in revenue. T
he new budget also sets aside nearly $7 million for routine annual maintenance and repairs.
Rich Cholodofsky is a Tribune-Review staff writer. You can contact Rich at 724-830-6293 or rcholodofsky@tribweb.com.
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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