Council questions FY26 enterprise fund increases for water and sewer operations

Mayor Nicholson and councilors revisited proposed FY26 increases in Gardner’s water and sewer enterprise accounts at an informal budget meeting Monday, focusing on pay-grid-driven certification costs and computer upgrades at treatment facilities.

The discussion centered on an estimated training and certification line the mayor said was based on newly negotiated DPW union contracts and on information-technology needs at the city’s treatment plants. “This is an estimate,” Mayor Nicholson said when asked how many personnel the line would cover. “We can certainly get back to you on the number of personnel that this would cover, but it’s an estimate.”

Why it matters: The line items are paid from the enterprise fund rather than the general fund; the mayor’s office said that gives the city “a little more flexibility” because unspent amounts fall into retained earnings in the enterprise accounts. That flexibility was part of the administration’s rationale for funding certain capital or security upgrades from the enterprise budget instead of cutting other general-fund items.

During the discussion, a city staff member, identified in the meeting as Mr. Soney, said the finance committee and department heads have raised cybersecurity and operating-system concerns. “There’s several computers in the city that we’re trying to get up to Windows 11,” Soney said, identifying computers at the wastewater treatment plant in Templeton and at the Crystal Lake and Snake Pond water treatment plants as priorities for the upgrade. He told councilors those computers relate directly to enterprise services and therefore were proposed in the enterprise account.

Councilor Brooks and a representative of the finance committee urged restraint. “I would prefer to see this on both sewer and water lower, and then once the people, if more money is needed, then have them come back for that money,” Brooks said, arguing the council could reduce the line now and allow departments to return with a request if necessary.

Councilors also questioned recurring communications and advertising line items tied to water and sewer work. Councilors noted historical spending in those categories has been about $4,000 a year; the mayor’s office said that funding buys notifications to residents (flyers, door notices, on‑site signage) and, when required, newspaper advertisements for bids under the general laws. The mayor added that a water-main replacement on Elizabeth Street began the day of the meeting and could explain higher near-term costs in operations tied to paving and notifications.

Discussion vs. direction vs. decision: Councilors discussed possible reductions and asked the administration to provide clarifying detail. No formal amendments or votes were taken at the meeting; the mayor and staff committed to return with precise personnel counts and to reconcile contract-driven pay rates with department budget grids.

Clarifying details captured in the meeting included the administration’s statement that the $20,000 figure under discussion was an estimate tied to the director’s proposal and the recently negotiated union contracts; that certain computers at the wastewater and water treatment plants need upgrading to Windows 11 for security; and that communications/advertising line items near $4,000 historically fund resident notifications and required bid advertisements. The council did not adopt or cut line items at this session.

What comes next: Councilors were instructed to work with Auditor Richard and the clerk if they plan to submit formal amendments. The administration said it will provide a breakdown of how many personnel the certification funding would cover and clarify specific IT purchases proposed for the enterprise account.