Kearny council adopts 25% first-year water rate hike after presentations on aging system and lead-line costs

Summary

After presentations from Veolia and NW Financial, the Town of Kearny adopted an ordinance that raises water rates by 25% in the first year with additional 6% increases in 2026 and 2027; council and residents pressed utility operator on main breaks, lead-service-line replacements, and widespread estimated bills.

The Kearny Town Council on Tuesday adopted ordinance 25-O-10, approving a 25% increase in water rates in the first year and additional 6% increases in each of the next two years, after presentations from Veolia (the town's water operator) and NW Financial on the system's capital shortfall.

Council action followed a summary of maintenance and capital pressures by Veolia and a financial overview by Michael (Mike) Hanley of NW Financial. The presentations described rising repair costs tied to main breaks and the state-mandated replacement of lead service lines.

Why it matters: The town's water operation is approaching a larger, multi-year capital program. Veolia said 2024 produced an unusually high number of main breaks and expensive gatehouse work. NW Financial said the utility needs tens of millions of dollars of capital over the next several years and that the town has been subsidizing the utility from the municipal budget rather than running it as a self-liquidating enterprise.

Jason Kiernan, vice president at Veolia, and John Libitz, Veolia project leader and the system's licensed operator, told the council the town's distribution system contains roughly 80 miles of water main and more than…

Kearny council adopts 25% first-year water rate hike after presentations on aging system and lead-line costs

Summary

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