Sanford-Pittsboro Utility Merger

Sanford’s expansive infrastructure, along with its existing partnership with Pittsboro, puts the City in an ideal position to help Pittsboro meet its current water and wastewater needs – which are quickly exceeding the Town’s ability.

Benefits of Merged System
For Sanford:

• better positioned to leverage future grant funding opportunities
• create a beneficial relationship for future capital projects
• revenue diversification
• economies of scale
• potential connectivity to Western Intake Partnership

For Pittsboro:

• rate stabilization
• eventual rate parity
• better ability to provide for growth needs

Rate Payer Impact

• For Sanford: no negative impact
• For Pittsboro: several capital projects need to be funded within the next several years. View an FAQ by the Town of Pittsboro.

Partners: City of Sanford and Town of Pittsboro

Consulting firm: Freese and Nichols

Town of Pittsboro Statement on Merger Decision

The financial implications of the merger between the Town of Pittsboro and the City of Sanford are a crucial aspect of the decision-making process. The cost of maintaining and upgrading the current utility system in Pittsboro, in the face of rapid population growth and aging infrastructure, is a significant burden. The estimated expenditure for water and wastewater improvements alone stands at over $210 million over the next 20 years.

In contrast, the merger with Sanford presents a more economically viable path forward. Sanford, with its larger population and more extensive utility infrastructure, has a greater capacity to absorb and distribute these costs. The merger would allow for the sharing of operational and maintenance expenses across a larger customer base, reducing the per-customer cost. Furthermore, the combined utility system could achieve economies of scale in purchasing and contracting, leading to additional savings.

Basically, while the merger presents a significant undertaking, it also offers a path towards more sustainable and cost-effective water and sewer services for the Town of Pittsboro. The potential for long-term cost savings, combined with the benefits of shared resources and economies of scale, make the merger a financially sound decision.

Supplemental Information

• View the City of Sanford's August 1, 2023 discussion and signing of the merger agreement on our website. (Bookmarks 8A and 8B)
• View the Town of Pittsboro's July 24, 2023 discussion and signing of the merger agreement on YouTube.
• Minutes of December 13, 2022 Sanford City Council workshop. (Pages 1-4)
• Minutes of June 21, 2022 Sanford City Council meeting. (Page 14)