SRU presents FY2026 budget and recommends 4% rate increase; river pump-station funding remains uncertain

Salisbury Rowing Utilities (SRU) presented its proposed full-year FY2026 budget to City Council April 15 and recommended a 4% rate increase for water and sewer customers as part of a multi-year plan to sustain capital investment and maintain debt-service coverage.

SRU Director Jason Wilson and Raftelis consultant Piper Brandt walked council through the utility’s operating budget, capital-improvement priorities and condition metrics. The utility reported a current FY2025 operating budget around $39 million and said it has invested roughly $150 million in capital projects over the last 15 years. SRU serves an estimated 53,000 customers in the region and described an average residential bill of about $65 based on 4,000 gallons.

Wilson highlighted critical capital projects, including ongoing work on valves and distribution-system reliability, the Town Creek pump-station conversion (design contract recently approved), and water-supply projects to improve pressure in outlying areas. He said SRU is now roughly 50% through a multi-year valve-rehabilitation program covering a system of about 8,000 valves.

Wilson warned that the city’s most important project, relocation and resiliency work for the river raw-water pump station intake, had been awarded earlier as a BRIC/FEMA grant but that staff recently received informal indications the FEMA funding could be in jeopardy; SRU continues to pursue alternative funding while advancing design work.

Raftelis summarized the utility rate model and financial metrics. The presentation showed the utility’s cash and fund balances are strong (operating days of cash were described as well above policy), though levels have drawn down modestly; the utility’s capital-asset condition ratio was reported around 0.48 against a peer benchmark around 0.62. Raftelis and SRU staff said raising rates 4% annually while drawing down reserves to fund a higher level of reinvestment would keep the utility on a sustainable path and preserve strong debt-service coverage.

No council action was requested at the April 15 meeting; staff said they wanted the proposed rate notice in time for partner jurisdictions to prepare their budgets. Councilmembers asked about staffing needs, depot/facility improvements at the water plant, and the potential effect on borrowing if the river-pump grant falls through. SRU said it will return with specific budget ordinances and fee-schedule changes during the formal FY2026 budget process.

SRU recommended a 4% rate increase projection for planning; staff stressed final increases will come as part of the budget adoption process.