Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Water Rates topic
No spam. Unsubscribe anytime.
Essex Junction council approves small increase in large-volume water user rate after public hearing
Summary
After a public hearing, the Essex Junction City Council approved a slight rise in the FY26 large-volume water user rate — affecting GlobalFoundries, the city’s sole large user — citing increased wholesale and state fees and the reallocation of public works labor costs.
Essex Junction City Council voted Wednesday to set the fiscal 2026 large-volume water user rate at just under $0.17 per 1,000 gallons, a roughly one-cent increase over the current fiscal year, following a public hearing and staff presentation.
The increase stems from the city’s FY26 water fund budget, which totals just over $1,900,000 — about a $155,000 (8.5%) rise from the prior year — driven primarily by a roughly 5% uptick in the Champlain Water District wholesale charge, a projected 13.5% increase in the state fee assessed on water, a 32.5% rise in allocated salaries and benefits and a $50,000 increase in the contribution to the water capital reserve. City staff said the rate-setting process and the formula used are defined in the city’s large-volume water user rate-setting policy.
City staff member Jess Morris led the presentation and explained that GlobalFoundries is currently the only customer classified as a large water user and that the city is required under its policy to hold a public hearing before setting the rate. “GlobalFoundries is currently the only large water user in the city, and we are required by this policy to hold 1 public hearing for rate setting for the large user rate,” Morris said. She summarized the budget drivers and the calculation method defined in the policy.
Council discussion focused on the composition of the salary and benefits increase. “We looked at each of the public works staff and determined what percentage of their time is actually spent within each of those three departments,” Morris said, adding that staff time previously attributed elsewhere was reallocated to the water fund. Council participant Brian Sheldon pressed for clarification about whether the increase represented new hires; Morris replied, “There are no new staff. We have maintained the existing staff level. It’s primarily driven by reallocation of the cost center for public works employees.”
Staff also said the charge assessed to any large user is reconciled at the end of each fiscal year; if usage is under or over projections, the company would receive a credit or bill for the difference. On procedural questions, resident Steve Eustis asked whether GlobalFoundries remained the only large user and whether unaccounted-for water was treated proportionally; staff confirmed both points.
After the public hearing closed, the council entertained the packet motion to set utility rates for FY26. The council adopted the proposed large-user rate as presented. The motion passed on a voice vote; councilors recorded the approval with “ayes” and no roll-call dissent noted on the record.
The rate-setting policy, the adopted FY26 water fund budget, and the rate calculation were sent to GlobalFoundries contacts after the May meeting when the council approved the water fund budget. Copies of the policy and the budget are posted on the city website, and staff said they circulated the budget and calculations to the large-user contact list.
The council’s action establishes the rate for FY26; final reconciliation against actual usage will occur at fiscal year end and could result in an adjustment or credit for the large user under the policy.
