Laconia Water Department outlines budget increases and planned improvements for infrastructure

In the heart of Laconia, New Hampshire, city officials gathered at the City Council Budget Meeting on May 20, 2025, to discuss pressing financial matters that will shape the community's future. The atmosphere was charged with anticipation as council members and department heads reviewed the budget, focusing on revenue projections, staffing changes, and necessary infrastructure improvements.

A significant topic of discussion was the city's cash reserves and the potential for a rate increase. Councilor Ben highlighted that the city had maintained a steady cash reserve of six months, a figure established three years ago by auditors Melanson and Heath. However, he cautioned that the financial landscape could shift dramatically if rates were to rise to 6%, emphasizing the need for more data and professional guidance moving forward.

As the meeting progressed, the council turned its attention to salaries, noting a 4% cost-of-living adjustment for city employees. With a full staff now in place, the council anticipates upcoming retirements that will necessitate hiring new personnel, including a financial analyst to replace the outgoing controller. This staffing change is expected to contribute to an overall salary increase of approximately 11%.

The discussion then shifted to operational expenses, where water production and distribution costs were highlighted. Notably, maintenance expenses surged by 23% due to an increase in water main breaks, a reflection of aging infrastructure. Council members acknowledged the challenges posed by these repairs, particularly the rising costs associated with asphalt and other materials needed for street repairs.

Health insurance costs also emerged as a critical issue, with a projected 15% increase attributed to staffing changes. The council is exploring options to transition to a new health insurance plan that could alleviate some of these financial pressures. The urgency of this decision is underscored by the need to ensure continuous coverage for both current employees and retirees.

As the meeting drew to a close, the council reviewed the capital budget, which totals $747,000. This budget includes essential upgrades to aging infrastructure, such as pressure-reducing valves and a new generator for the Weir station. The council is also considering a bond for future street projects, indicating a proactive approach to maintaining and improving city services.

In a final note, the council addressed cybersecurity concerns regarding the city's SCADA systems, emphasizing the importance of protecting critical infrastructure from potential threats. With a commitment to enhancing security measures, officials reassured residents that their systems are currently safeguarded by robust protocols.

As the council members wrapped up their discussions, it was clear that the decisions made in this meeting would have lasting implications for Laconia's residents. With a focus on fiscal responsibility and community needs, the council is poised to navigate the challenges ahead, ensuring that Laconia remains a vibrant and resilient city.