Sewer fund pressures: Winnipesaukee basin replacement bill, new EPA permit and ordinance updates discussed

Public works staff briefed the City Council on changes to sewer cost allocations, a contentious replacement fund bill from the Winnipesaukee River Basin program, and an upcoming update to the city’s sewer ordinance.

Nate Gurett and Wes Anderson explained the basin program’s replacement‑fund recalculation and how it affected the city’s share. Gurett said the basin program’s asset valuation used in the replacement calculation rose to about $360 million, and the program is applying a 5 percent per‑year calculation over 10 years to reach a target of roughly $16 million in the replacement fund. He said that change produced a substantially larger bill for member communities; the basin program’s November/December invoice approached $750,000 due on receipt, compared with the prior year bill of about $165,000 that Laconia paid.

Gurett described several causes and adjustments: the basin program revised meter locations and counts in some service areas (affecting Guilford flows), the city’s inflow and infiltration (I&I) reductions and lining work lowered some allocations, and historical meter placement errors in a Guilford metered location undercounted southern Guilford flows for years. Where Guilford previously appeared to be contributing a small share to certain pump station costs, corrected metering now shows a substantially higher Guilford share for the south route; the city has been working with engineers to present a revised cost‑sharing analysis to Guilford.

Gurett said the basin program’s replacement fund methodology is “by statute” and that the program’s total calculated asset value yields the 5 percent over 10 years figure; he and staff have met with basin program staff and will continue to pursue a more reasonable allocation and clearer accounting. Councilors discussed whether communities should pay immediately, negotiate, or hold the bill; the council did not adopt a payment decision at the presentation.

Staff also reviewed recent regulatory and program changes: a new EPA permit returned in July with updated language, and the basin program now requires an adaptation plan to identify assets in flood zones and other climate‑related vulnerabilities. Private sewer system oversight language will be included in the updated city sewer ordinance, and staff said they will propose changes to the sewer development fee structure (the current fee cited in the presentation is $1,600 per connection) so fees are more proportionate to project size and impacts.

On capital projects, Gurett cited completed and ongoing work: the Hillcrest pump station upgrade is finished and commissioned; Briarcrest force main alternatives such as pipe bursting could save about $225,000 versus an open cut estimate of roughly $450,000; the White Oaks public‑private sewer extension is proceeding in phases, with phase 1 scheduled to be binder‑paved for Bike Week and later completed in subsequent phases.

Gurett said the sewer fund operates largely as a net‑zero budget but that under the assumption the city would pay the basin program replacement request in full the sewer fund would be about $150 in the red (presented amount was $150,000 in the red — staff noted this depends on how the basin replacement request is resolved). Councilors asked for follow‑up information and requested staff continue negotiations with the basin program and DES representatives.