Dec 16, 2016 3 min read

Customers will see a roughly 40 percent increase over the next five years in rates the Canonsburg-Houston Joint Authority charges them for sewerage.

The authority’s board approved the increase in a unanimous 4-0 vote Thursday to help fund payments on $53.3 million in bond debt the authority incurred last year to fund improvements to its facilities. The average ratepayer will see an increase of about $1.30 a month in 2017. The increases will come to about $7.50 through 2021 for the average ratepayer.

The first increase takes effect March 1, authority solicitor Gary Matta said.

“We have it set up on what we believe the projection is; however, at any time, this authority board can go back and pass a new resolution revising that number – increasing or decreasing the number that’s there,” he told board members.

Even with the increases, the authority’s rates are lower than those of many of its counterparts in the region, according to a report of an audit of its finances last year.

The authority’s service area includes Canonsburg, Houston and Cecil, North Strabane and Chartiers townships, and it bills the various local governments or authorities with which it holds agreements to treat customers’ sewage, and they, in turn, handle collection from customers. Changes in the Canonsburg-Houston authority’s rates are separate from any changes in those assessed by the local government entities involved.

Last year’s bond issue, underwritten by a subsidiary of PNC Bank, was taken out to upgrade and expand the wastewater treatment plant in Canonsburg to comply with Act 537 – which requires “every municipality within the commonwealth develop and maintain an up-to-date sewage facilities plan” – as the population in the authority’s service area is expected to nearly double by 2028.

The first payments on the bonds come due in 2018 and continue until 2045.

Asked about the authority’s ability to handle its debt payments, Matta said, “We’re pretty confident that the authority is on solid ground. We think we’re one of the most secure authorities financially within this region.”

The authority charges $2,178 for each new tap-in, and projects 470 new tap-ins a year in its compliance plan. Officials couldn’t immediately provide the exact number of new tap-ins the authority performed this year.

“I would say less than 200,” Chairman Rob Luksis said. He expected that to change. “Every cow pasture you go by, you see more and more earth movers. It’ll recover.”

Along with Luksis, board members Mike Alterio, Alan Zofchak and James Maund voted. Member Steve Lucas didn’t attend the meeting.