Sanford-Pittsboro Utility Merger
About
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)
