The municipal wastewater system in Fairview Township, York County was recently acquired by the Pennsylvania American Water for $16.8 million.
"We are very pleased to close the year with a significant acquisition that further expands our roster of wastewater operations," said Pennsylvania American Water President Kathy L. Pape. "The acquisition provides a long-term wastewater solution and financial relief for the local community, and is also a perfect fit within our existing water footprint."
Pennsylvania American Water plans to invest an additional $13 million in system improvements that includes the installation of approximately 23,500 feet of new wastewater lines to provide public wastewater service to about 200 homes and businesses in Fairview Township.
"This transaction brings a number of benefits for our community," said Fairview Township Board of Supervisors Chairman, Robert P. Stanley Jr. "As a result of the sale, township residents will receive a 50 percent reduction in real estate taxes in 2016. The sale's proceeds will help pay off approximately $21 million in sewer debt and avoid an anticipated $14 million in additional debt that might have been incurred to complete planned projects."
According to their press release in Business Wire, Pennsylvania American Water can now provide wastewater service to approximately 4,000 customers with the newly acquired system. These includes more than 200 businesses and commercial establishments where Pennsylvania American Water is already the source of water service for Fairview Township.
The existing wastewater rate of Fairview Township will be adapted by the Pennsylvania American Water until Dec. 31, 2015. The company will not require the previous $9,500 per EDU tap-in fee for existing homes and businesses but it will have a $4,000 per EDU tap-in fees for new homes and business.
Four township employees who oversee the operations of the municipal wastewater system have been offered employment with the Pennsylvania American Water.
