2022
The Municipal Authority of the Borough of Edgeworth Newsletter
313 Beaver Road, Sewickley PA 15143
412-741-5100
www.edgeworthwater.com
Since 2001 the Edgeworth Water Authority (EWA) has purchased water from the Ambridge Water Authority (AWA). Effective January 1, 2021, our cost of water purchased from AWA increased by 30%. Beginning January 1, 2022, our cost of purchased water increased by an additional 15%. The cost of purchased water represented approximately 40% of our 2021 operating expenses.
As a relatively small water authority, maintaining the physical integrity of the supply system is perhaps our greatest challenge. In the development of our annual budget, the EWA staff and Board work closely with its consulting engineer to determine the priorities for the capital expenditures. In an effort to reduce its own investment in its capital needs, the Authority has applied for available grants. In 2020 we were awarded a grant in the amount of $320,710 to replace a portion of the main line along Main Street in Fair Oaks. This grant represents 60% of the project cost. The Authority was also awarded a $100,000 grant to replace the water line along East Drive in Edgeworth. The receipt of these grants provides a benefit to all EWA customers.
As a result of our 2021 financial performance, and the successful grant applications, we are able to limit the increase in water rates to less than 5% beginning January 1, 2022. This rate increase will raise the minimum quarterly bill by $2.94 for general service, and $3.30 per quarter for high service customers.
Current capital projects planned for 2022 include the replacement of approximately 2000 feet of the water line on Woodland Road and West Drive, and a lead abatement initiative funded by a grant of $394,095 and low interest rate loan of $250,905 from PENNVEST.
We hope that this memorandum will provide our customers with a better understanding of the reasons for the rate increase. We will continue to keep you informed. Please visit our website for news and updates.
The Edgeworth Water Authority (EWA) entered into a 20-year agreement to purchase water from the Ambridge Water Authority (AWA) beginning in January 2001. This contract expired in December 2020. Both EMA and AWA have faithfully fulfilled their obligations. AWA has reliably delivered high quality water that met our daily requirements.
In 2019, the EWA entered into negotiations with the AWA to extend the contract. From the outset, AWA made it clear that they would only extend the contract at a substantially higher rate. The EWA Board met with other potential water suppliers, but after considering the quality and cost of water, along with the capital expenditures required to connect with alternative suppliers, the Board determined that a new contract with AWA was its preferred course of action.
Effective January 1, 2021 our cost of water purchased from AWA will increase by 30% increase. In subsequent years, the cost of purchased water will increase 15% each year until the rate paid by EWA is equal to the rate paid by AWA domestic customers. The cost of purchased water represents 35% of our total operating expenses.
The EWA is committed to maintaining the physical integrity of the supply system. Our objective has been to identify and fund the authority’s capital investment requirements on a timely basis. Annually the EWA staff and Board work with its consulting engineer to determine the priorities for the capital expenditures. We have been operating in a manner that is consistent with the Long Range Plan which was developed to identify significant capital projects. In an effort to reduce its own investment in its capital needs, the Authority has applied for available grants. In 2020 the EWA was awarded a grant in the amount of $320,710 to replace a portion of the main line along Main Street in Fair Oaks. This grant represents 60% of the project cost. The Authority also awarded a $100,000 grant to replace the water line for East Drive in Edgeworth. The receipt of these grants provides a benefit to all EWA customers.
As we all know, 2020 was a dry summer. This weather condition resulted in better than expected financial performance as water usage was higher than normal for many of our customers.