Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities Water Sewer topic
No spam. Unsubscribe anytime.
Council hears massive water and wastewater funding gaps; staff flags PUC and grant limits
Summary
Staff warned the council that enterprise-funded water and wastewater projects show large unfunded needs and described limits on using local funds versus rate-based funding under Public Utilities Commission rules; councilors discussed seeking legislative changes to allow non-ratepayer funding.
City staff told the council the water and wastewater systems face substantial unfunded capital needs and cautioned that rate-setting and state regulatory rules constrain how the city can cover those costs.
"Water rates are regulated by the Public Utility Commission and rates are determined to support operations and capital needs," Jim Nolan, director of finance, said during the CIP presentation. Nolan and staff explained that outside of PUC-approved rate changes, grants are the primary non-rate option to fund water capital work.
Staff presented a five-year picture showing the water fund with $3.1 million of funded projects in 2026 but total projected water needs of about $26.2 million for that year and a five-year total need on the order of $143 million. Wastewater and stormwater (WPC) projects showed funded projects of $15.3 million in 2026 and large unfunded totals in the five-year outlook.
Councilors asked whether the city could use non-ratepayer local funds to accelerate repairs. Rob, a city staff member, confirmed that the PUC treats non-rate infusions like grants and cautioned that distributing costs across wholesale or regional customers introduces equity questions. One councilor suggested pursuing state legislation to allow municipalities more flexibility to fund utility infrastructure outside of rate-setting.
Staff and councilors also lamented the allocation of some state funds — for example, recent lead-service-line money that largely went to Providence — and discussed seeking legislative or lobbying strategies to improve grant access. The council asked staff to bring proposals for how legislative changes or targeted funding strategies could be pursued alongside CIP planning.
No decisions were taken at the workshop; staff said they will continue to monitor grant opportunities and work with the council and legislative delegation on potential statutory or regulatory approaches.
