Task force and council members asked voters to authorize a $1,000,000 bond (Article 4) to address an accumulated sewer‑fund deficit that municipal officials say developed after an extended period without rate increases and a loss of contract income.
A task force presenter said the sewer fund did not receive rate increases from roughly 2016 until early 2023 while operating costs rose, and the city lost about $185,000 in annual income when the Lee Jay sludge contract with Casella ended. The presenter said that over time the sewer fund used reserves and the general operating fund covered shortfalls, creating a structural deficit.
The bond request would move sewer‑fund deficits onto long‑term financing rather than continuing to be carried by the general fund. Task force members said council has taken some accounting actions to reduce inter‑fund liabilities but that a more durable solution requires voter authorization of the bond and rate adjustments.
The presenter also described that budget line items for sludge handling and other assumed revenues had been carried in historic budgets even after contracts changed, and that those legacy assumptions contributed to the deficit.
If voters authorize the borrowing, the water and sewer task force said funds would be used to repay inter‑fund advances and stabilize sewer operations while staff and the task force develop a sustainable rate plan. If voters do not authorize the bond, the city would need to identify other operating adjustments or rate increases to cover the shortfall.