The Bradford City Water Authority adopted its 2025 operating budget Wednesday, including a small increase that will cost the average residential customer about 80 cents per month.
The authority’s 2025 budget includes revenue projections of $5,275,779, operating expenses of $3,381,951 and debt service requirements of $1,481,776, while also making $412,052 available to transfer to the Bond Redemption and Improvement Funds used for capital expenditures.
The authority’s bond indenture requires a debt service coverage ratio of net revenue to debt service of at least 1.20. The 2025 budget’s ratio is 1.28.
Executive Director Steve Disney said the budget “attempts to keep pace with high costs” and reflects an increase of 25 cents per 1,000 gallons of water, from $4.75 to $5. The authority’s average residential customer, Disney explained, consumes approximately 3,200 gallons per month. Based on these rates for 2025, customers can expect to pay approximately 80 cents more per month, or $9.60 per year.
This increase will begin to fund the authority’s water meter replacement project, which is expected to be underway by mid-2025, but Disney noted that chemical costs have been the main driver of rate increases in the last few years. Caustic soda and polyaluminum chloride costs, in particular, continue to escalate. He added that energy costs are 29.35% higher since January 2021 and fuel costs remain near record highs.
Wages for 2025 include the executive director at $96,997.81, distribution operations manager at $114,297.35, utility billing manager at $73,850, staff accountant at $73,368.65 and administrative assistant at $67,517.78. Hourly wage classifications range from $33.76 to $37.98.
“Through attrition, the authority has reduced its workforce by one employee from 2024, and two employees since 2022,” Disney said. “The authority has also been diligent in keeping expenses below budget to offset decreases in overall water consumption.”
He added that Bradford City Water Authority rates remain among the lowest in Western Pennsylvania. A recent rate study comparing data from 78 regional water systems shows the lowest, Latrobe Municipal Authority with 9,385 customers, is at $2 per 1,000 gallons. Port Allegany is second at $2.35. St. Marys Area checks in at $4.73, Smethport Borough customers pay $7.20, Ridgway $9.51, Lewis Run $9.80, Olean (N.Y.) City $10.78, Johnsonburg $11 and Coudersport $11.45. Mount Jewett residents, on Aqua America, are charged $14.49 and customers in Kane, Warren and Punxsutawney with PA American Water face charges of $18.77 per thousand gallons.
Across all 78 systems, the average rate is $8.21.
In other regular business, Ken Kane of Generations Forestry updated the authority’s timber operations. He said the Hazelton Mills ash salvage has been slowed by recent weather and noted that the watershed “is the most diverse area of timberland in the state. With walking/hiking trails, snowmobiling, mountain biking, canoeing/kayaking, hunting, forestry, conservation and a multitude of recreational opportunities available and prospering.”
The authority approved Generations Forestry to speak on its behalf to the Pennsylvania Department of Environmental Protection (DEP) regarding the department’s orphan well program.
The Interstate Parkway timber sale was approved at $256,099 to Northwest Hardwoods Inc. of Marienville, as the high bidder among four. The sale comprises 519,030 board feet of primarily hard and soft maple.
The project to replace an 8-inch main for the Route 219 pump station is underway with Continental Construction as the low bidder at $497,152.50. American Rescue Plan Act (ARPA) funding from H2O PA will cover $265,000 and the authority must provide matching funds to meet the total project cost.
The $4.12 million water meter replacement project is paused until the Pennsylvania Infrastructure Investment Authority’s (PENNVEST) January meeting when the board will determine which projects will be funded, and whether the funds will be 100% loans or a combination of loans and grants.
BCA Chairman Ron Orris appointed board members Tom Arrowsmith and Terry Lopus as the Nominating Committee for 2025 board positions. The board will meet at noon on the second (as needed) and fourth Wednesdays of each month in the Kubiak Building at 28 Kennedy St.
Disney further noted that discussions are ongoing with the recently established Keating Township Municipal Authority regarding its potential connection to the Bradford system. The Keating authority would supply the hilltop area — from Rew to Cyclone and possibly Ormsby — with potable water. Officials discussed the need for an intermunicipal agreement and a certified operator to review the new authority’s standard operating procedures.
