Harmony playing shaky money game via water system decision
Harmony Borough Council's decision to play Russian roulette regarding the community's water system should be of concern to all of the system's customers - indeed, all borough taxpayers.
The borough could have ridded the community of responsibility for the aging system that is facing major upgrade expenditures, as well as a projected $225,000 operating deficit this year. And, the borough could have had $1.5 million in its pocket, if it had sold the system to Pennsylvania-American Water Co.
Instead, the council voted Tuesday to keep its water plant operational under borough control, while also continuing to pursue a water-systems merger with Zelienople - an agreement that might or might not happen.
Undoubtedly, some of the council concern revolves around the rates customers would pay under Pennsylvania-American. But whether the council adequately surveyed residents about the estimated $220-per-resident cost of bringing the water plant back into compliance with state regulations remains a question open to conjecture.
Meanwhile, the projected operating deficit for this year would follow deficits of $95,000 in 2002 and $45,000 in 2003.
The community cannot continue "eating" such shortfalls indefinitely.
If the merger with Zelienople cannot be achieved, Harmony officials should be encouraged to rethink the whole water system scenario.
The cost of returning the water plant to compliance with state regulations has been estimated at more than $200,000. If only that outlay were projected, Harmony's continued control of the water business might not be out of line.
However, that cost is only the tip of the proverbial iceberg. Engineering reports estimate that the water system will need between $2 million and $5 million in repairs and upgrades to keep up with future demands.
It's tough to envision how a town of Harmony's size will be able to shoulder such a cost.
That's why likening the borough's latest action to Russian roulette is a realistic observation. The borough might be lucky for awhile in avoiding serious financial problems stemming from the water-system burden, but even on the basis of the yearly deficits being incurred, trying to battle this money-draining behemoth without some significant outside help seems to be a path to fiscal destruction.
Councilmen Jeff Smith, Gary Habsburg and Harold Herr appear to recognize the evitable, but Councilmen Dave Rogers, Russ Ottney, Dave Szakelyhidi and Chuck Beighey have oped for the dangerous gamble.
"Let's get the plant back to the people for the people," Rogers said.
But Smith seemed to be properly acknowledging reality when he said, "You cannot spend $200,000 in a borough of less than 200 people just to keep it (water plant) alive."
In response to the council's action, the Harmony Water Authority voted Thursday to raise water rates by an average of 31 percent for the authority's 600 customers, which include some people living in Jackson Township. The hike in rates is expected to raise only about $100,000, however.
Sentimentality over the borough's financial ability to operate the water system in the past has no place in 2004 - especially with all of the projected heavy money burdens facing the system in coming years.
The council merited plaudits last year regarding its intention to gauge public opinion about the water system options, and a straw poll taken at a December 2003 water authority meeting showed the majority of the 100 residents in attendance were in favor of selling the plant.
The council's latest action therefore is not only questionable, but puzzling.
- J.R.K.
