Feb 29, 2024 By Katherine Mansfield 4 min read

Canonsburg Borough hosted a public workshop Tuesday evening to discuss the potential sale of the Canonsburg-Houston Joint Sewer Authority.

Last year, Canonsburg and Houston boroughs began discussing selling the locally owned joint sewer authority, of which Canonsburg owns 88%, to the private company Aqua for $145 million.

The sale would net Canonsburg Borough an expected more than $75 million. Those funds, the consulting firm PMF Financial Advisors explained Tuesday, could be put into a trust, where they would accrue interest the borough could use for operations in coming years.

In November, Houston Borough voted to sell the authority. In December, Canonsburg failed to vote on the issue. Then-council president Eric Chandler told the Observer-Reporter at the time the decision felt rushed.

“Things that have been consistent negatives have been, we’re losing control of our facility. This is being rushed down our throats,” current council President Rich Russo said, noting the sale has been in the works, in smaller and increasingly larger and more public groups and meetings, for a couple years. “We’re taking our time. We want to give everybody ample time, including council.”

Resident involvement was the impetus for Tuesday’s workshop, moderated by Russo. He said throughout the sales process, during which the borough has hosted several workshops and meetings, a few themes have arisen.

“The strong issues always are: what’s going to happen to rates? That’s a big one,” he said.

Selling the CHJSA, which has provided sewage services to Canonsburg, Houston and neighboring Cecil, North Strabane and Chartiers, for 60 years, to a for-profit company would inevitably lead to price increases, Russo conceded.

“They’re a public company. They have to make a profit for stockholders,” he said. “How do I bridge that gap between what my rate would be if I don’t sell and what my rate is going to be if I do sell? There’s a few ways to bridge that gap.”

Russo said Canonsburg could, using money from the sale, provide a sewer bill rebate to residents. Or the borough could subsidize real estate taxes through the Homestead Act, to offset the cost of the rate increase.

“We’re talking about selling it for $145 million. There seems to be sufficient money to do one of those two options, in addition to subsidizing my municipal budget,” he said.

Another concern among residents and borough council: the Pennsylvania Utility Commission’s new legislation, which, if passed, would cap sales prices on purchases like the CHJSA.

“Our understanding is that the proposed tweak to the current law – Act 12 – will allow the PUC to put a cap on what PA American Water or Aqua can offer,” Russo explained.

Canonsburg’s consultant, PMF Financial Advisors, believes that because the joint sewer authority sale is already in motion, new legislation will not impact the selling price.

“If we vote ‘no’ or if the PUC and the state say, ‘As of today, going forward, all of the previous deals are done and void,’ then we start over again with what is anticipated to be a lower number for the purchase price,” Russo said.

Russo hopes to vote on the sale soon, but would like to host another public meeting before bringing the matter before council.

“Folks felt they didn’t have enough information,” he said. “More of our residents need to be aware of the process. Despite the disagreement of whether we should or whether we shouldn’t, we, as Canonsburg and Houston residents, should feel very fortunate and proud of the authority that we have built and established and maintained over the years.”

Canonsburg is working to secure a larger venue for a large community meeting regarding the joint sewer authority sale. Russo said he aims to hold the meeting within the next 30 to 60 days.

“Then we’ll hopefully get it to the table for a vote,” he said.