Norwalk WPCA hears five-year financial plan, schedules public hearing on proposed rate increases

Norwalk Water Pollution Control Authority members on an evening January meeting heard a five‑year financial plan from consultants Woodard & Curran that recommends a 4.4% user‑rate increase for the next fiscal year followed by 4% annual increases for the next four years, and the WPCA voted unanimously to hold a public hearing on the proposal at 5:30 p.m. Tuesday, Feb. 18, 2025.

The plan, presented by consultants Kait Kolbrenner and Katie Maguire of Woodard & Curran, projects revenues and expenses for fiscal 2026–2030 and is intended to fund capital and operating needs while maintaining a target operating reserve equivalent to about seven months (roughly 210 days) of operating expenses. The consultants said the capital program included in the forecast totals $36,600,000 for sewer and collection system rehabilitation and $20,000,000 for wastewater‑treatment‑plant rehabilitation scheduled in 2026–2027; a smaller $250,000 pump‑station upgrade is also included. The model assumes 3.5% annual escalation on operating costs and bonds priced at an assumed 4.6% for 30 years.

Why it matters: the WPCA said the recommended increases are intended to keep the authority’s cash reserves near the target while funding major rehabilitation projects the plan assumes will be financed with bonds. The consultants said the forecast anticipates that rate increases will raise a typical single‑family residential annual user fee by roughly $18–$20 per year over the five‑year period from a historical baseline of $396.

Details of the forecast and uncertainties: the presentation noted the model assumes steady customer accounts and flows (including the flow from Wilton) and includes a provision for collectible accounts; it does not assume customer growth. The consultants cautioned that timing and requirements of any state consent order remain uncertain and could change project timing or costs, possibly requiring model adjustments. As WPCA member Vanessa said during discussion, “we are really trying to, really not put much of a burden into our residents,” and the consultants and staff agreed they would present the financial slides again at the scheduled public hearing so attendees can see the forecast that underlies the proposed rates.

Action taken: the WPCA voted unanimously to schedule the public hearing on the proposed FY25‑26 user rates for 5:30 p.m. on Feb. 18, 2025; staff will present the Woodard & Curran slides at the hearing. No other rate adjustments were finalized at the meeting.

The authority also noted current cash reserves of about $22,000,000 and said the reserve is expected to decline toward the target as debt is added to fund the capital program. The consultants said the model’s bond and escalation assumptions may be adjusted as actual financing terms are finalized.

The WPCA opened the meeting, briefly entered executive session with no action taken, approved its Dec. 16, 2024 minutes with one abstention, and then heard the financial presentation. The scheduled public hearing will be the next formal opportunity for public comment on the proposed rates.