SAXONBURG — By the end of the month, the Saxonburg Area Authority should be out of the water business.

Paul Cornetti, authority manager, said in an interview the closing for the sale of the water system to Pennsylvania-American Water is set for Oct. 28.

"There's nothing that should be delayed," he said of the $6 million sale.

Authority officials maintain the sale will save the 1,100 water customers in Saxonburg, Clinton Township and Jefferson Township a 59 percent rate hike.

Cornetti said it would have been cost-prohibitive to repair all of the aging 14-mile water line from Harmar Township in Allegheny County to the borough. "The cost was too great to maintain and replace it," he said.

While 3.4 miles of pipe dating to the 1950s already has been replaced, the estimated cost to do the remaining 10.6 miles is $6.4 million. Since 1991, the main has had more than 1,000 leaks. "We had nine last month," Cornetti said.

The switch to Pennsylvania-American would not just prevent a rate hike, it is expected to lower customer rates. Residents will pay an average of $107 less annually while businesses will pay an average of $1,053 less.

The authority didn't get into the drinking water business until 1978, but the line dates back to when USX used it to supply a sintering plant that later became the authority water plant off Route 228 in Clinton Township.

Since the closing will occur late in the month, water customers in the three municipalities might receive multiple bills in November to cover all 30 days of the billing cycle.

The pending sale does not affect the authority's 3,400 sewage customers in Saxonburg and four townships: Clinton, Jefferson, Middlesex and Penn.

While customers should pay less, the three affected municipalities will pay more. Saxonburg, Clinton and Jefferson will pay for their respective fire hydrants. That is a cost the authority absorbs now. Clinton will pay $5,983 annually, Jefferson will pay $2,659 and Saxonburg will pay $6,480.

Paying for fire hydrants won't be the only impact to the borough's 2010 budget. Expenses currently split three ways between the borough and two divisions of the authority will be condensed into two: the borough and the sewage authority.

While Mary Papik, authority controller, hasn't calculated the exact financial impact to the borough, she said the change will contribute to the need for a property tax hike in 2010.

Cornetti said two field crew workers will likely become Pennsylvania-American employees upon the closing. Any staff changes will be finalized at an Oct. 27 meeting.

Pennsylvania-American already provides drinking water to Butler, East Butler, Connoquenessing and six townships: Butler, Center, Connoquenessing, Oakland, Penn and Summit.