HAGERSTOWN, Md. — Hagerstown officials are thinking about taking over Smithsburg’s water system. This move could lower utility bills for residents and shift responsibility for over $10 million in needed infrastructure upgrades to the city.
At a work session on Nov. 3, Hagerstown’s City Council talked about possibly taking over Smithsburg’s water distribution system. This would include storage facilities, the pumping station, customer accounts and maintenance duties.
This proposal follows talks by officials from both towns about financial problems with Smithsburg’s water system and how combining operations might help.
Right now, Smithsburg buys water from Hagerstown under a wholesale agreement that started in 2006. The agreement, renewed a few times, gives Smithsburg a 16 percent discount on Hagerstown’s water rate.
Smithsburg then supplies water to about 1,200 customers, charging rates meant to cover operating costs, maintenance and other expenses. City officials said this setup means Smithsburg customers pay much more for water than people who get water directly from Hagerstown.
Smithsburg needs $10 million+ in infrastructure work
According to the work session, Smithsburg’s water system needs over $10 million in upgrades.
Officials said these costs are a big financial burden for a small town like Smithsburg, which serves about 1,200 customers and uses around 200,000 gallons of water each day.
Hagerstown officials said moving the system to a larger utility could spread operating and maintenance costs across more customers.
The proposal could also cut some of the administrative and operational costs of running its own water utility. On Aug. 6, Smithsburg representatives met with Hagerstown officials to formally ask them to consider a transfer.
On Oct. 6, Smithsburg’s mayor and council gave town staff permission to keep talking with Hagerstown about the possible transfer.
Smithsburg customers could save a lot
One main benefit discussed was lower water bills for Smithsburg residents. Officials said customers could see their bills drop by double-digit percentages if Hagerstown takes over and provides water service directly. They also discussed current water usage and billing arrangements.
A council member pointed out that about 55 percent of Smithsburg’s customers are in the minimum-use billing category. Because smaller water systems must spread fixed costs among fewer people, these households can end up paying high charges even if they use little water.
Officials talked about possible savings of 50 to 70 percent or more for some customers. However, these numbers are just estimates, not guaranteed. The actual savings would depend on the final transfer terms and the rates set for customers.
People living outside Smithsburg who get water from the town’s system could also benefit.
Hagerstown would assume responsibility for infrastructure
With this proposal, Hagerstown would get more than just Smithsburg’s customer accounts. The transfer would cover the town’s water distribution system, meters, two underground storage tanks, one aboveground tank, and a pumping station.
Hagerstown would also handle maintenance, billing, customer service, water quality checks, and following all required regulations. City staff would need to add the new infrastructure to Hagerstown’s mapping system and set up ways to handle service interruptions and maintenance emergencies.
A possible takeover would also require a careful review of the infrastructure’s condition, operational responsibilities and financial obligations. A key question is how the towns will handle the over $10 million in needed infrastructure improvements and what costs Hagerstown would take on in a final deal.
State officials consulted about proposed transfer
Hagerstown staff said they talked about the proposal with the Maryland Department of the Environment. According to the presentation, state officials supported the idea and saw no major regulatory problems with the transfer.
Hagerstown would still have to update emergency response plans, water sampling procedures, and other required paperwork. The city would also monitor water quality throughout the new parts of the system.
Staff members said Hagerstown’s total number of customers would stay under 100,000, so the acquisition shouldn’t change the utility’s regulatory status much.
Edgemont water project could support expanded service
Officials also said the proposed transfer could work well with Hagerstown’s planned Edgemont water project. The new facility is expected to supply water to Smithsburg and nearby communities.
Staff members said the facility is expected to produce about 500,000 to 700,000 gallons of water each day, depending on state permits.
The extra water could ease pressure on other parts of Hagerstown’s system and help with water age issues in areas farther from current treatment plants. Officials said the Edgemont project could help the city serve the Smithsburg area better in the long run.
Negotiations expected to continue
Hagerstown staff members asked for permission to keep talking with Smithsburg officials and lawyers about the possible transfer.
These talks would cover the state of the current infrastructure, financial responsibilities, regulatory needs, operational duties, and the terms of any ownership deal. The proposal is still being discussed. No final agreement was made during the Nov. 3 work session.
If an agreement is reached, it would have to go back to the elected officials in both Hagerstown and Smithsburg for approval. If approved, this change would significantly shift how Smithsburg residents get their water. It could lower household utility costs and put the town’s old infrastructure under Hagerstown’s larger water system.
