SHARPSVILLE, PA. Council debates water options

Borough residents are facing substantial property tax, water and sewage rate increases.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
SHARPSVILLE, Pa. -- It looks like a majority of borough council members are opposed to the sale of the municipal water system to a private company, and based on comments made at a council work session, most of the general public feels the same.
More than two dozen residents jammed council's small meeting room Wednesday to learn about the fate of the 50-year-old plant.
They expected council to make a final decision on the issue, but Council President Jack Cardwell, who had hoped to get the matter resolved, said council hadn't had time to review the data provided by Michael Wilson, borough manager.
However, after some lengthy debate, during which a number of residents voiced opposition to a sale, Cardwell said he will force the issue at the next council meeting.
"We're going to have that vote on the 13th of August," he vowed.
Members' opinions
Comments from various council members indicate that a majority of the seven are opposed to a sale and favor renovation instead.
Cardwell, Tom Lally, Luann Anglin, Bob Piccirilli and Gus Grandy all said they don't want to sell the plant.
Only Councilman Guy Moderelli indicated a willingness to sell the system to Consumers Pennsylvania Water Co., which has offered to buy it for $5.124 million plus put up $1.125 million to upgrade water lines.
Councilman Alex Kovach said he is still looking at the financial data.
Council has been examining options for the system, including selling it, remodeling it or building a new plant.
Renovation is expected to cost around $600,000, although that's only a guess at this point. Building a new plant would cost at least $3 million, according to an engineering estimate.
Bill Boyle of Mayfield Road was the only audience member to speak in favor of a sale.
The transaction would leave Sharpsville with $5 million in the bank, which could be invested and provide at least $250,000 a year in new revenue, he said, enough to offset any immediate-future tax increases and offset the borough's recent deficit spending.
Deficit spending
Wilson said the borough has been covering a revenue shortfall for the last three years by taking money from its capital improvement account, a fund set aside to save money for major equipment purchases.
The fund totaled $1.2 million three years ago but the borough has used nearly $380,000 over the last three years to shore up the general fund, Wilson said.
Council also stopped putting new money into the fund last year, he said.
Council wants to cover that annual budget shortfall and Wilson said that would require a 5- or 6-mill tax increase.
That would raise the average residential tax bill between $95 and $114 a year.
Wilson said covering the deficit spending isn't the only expense borough taxpayers will be asked to cover. The borough needs to be putting the equivalent of 2 mills of tax revenue ($50,000) back into the capital improvement fund every year plus will needs another 2 mills of general fund tax revenue just to keep up with inflation.
Residents can expect to be hit with sanitary sewer fee increases that will raise the average residential rate from $25.70 to $39.20 a month in 2005 to cover Sharpsville's share of improvements at the Sharon sewage treatment plant where Sharpsville sewage is treated.
Residents will be hit with increases in water rates as well, even if the borough does only a plant renovation, Wilson said, estimating that average residential rates would rise from $22.95 per month to as much as $36.49 per month.
Even if the plant isn't sold to Consumers Pennsylvania, residents will see their rates rise over a period of five years to the current Consumers' rates of about $43 per month, he said.
Residents said they are willing to pay higher rates if it means the borough keeps its plant.