Saco Sewer fees rise as Water Resource Recovery Department starts capital reserve

Councilors on Monday discussed a proposed 14.7% increase in sewer user fees presented as part of the Water Resource Recovery Department budget review, a move staff said is intended to begin a capital reserve for the new treatment plant and related project completion costs.

Councilor Berman asked whether the increase was to begin bond repayments for the new treatment plant and whether further increases would follow. Director Carter said the city has already set aside funds for bond payments and is establishing a capital program and reserve because some project bids and remaining work may push costs higher. Carter said major construction is scheduled to end in December 2026 and the project should be substantially complete in 2027.

Carter said the department has relied heavily on impact fees in the past and judged it prudent to start a formal capital reserve funded by user fees to ensure the city can finish the project and cover rising costs. Carter also noted some TIF funds are being allocated to cover certain project costs.

No formal vote was taken on rates at the May 5 review; the department requested the council designate a councilor as resource for follow‑up (Councilor Hewitt agreed to serve as resource). Staff will present final rate language and any proposed schedule of increases as part of the formal budget/adoption process on May 12.

Why it matters: sewer fees fund treatment infrastructure and operations; creating a dedicated capital reserve shifts more of the project financing burden onto utility user fees rather than the general fund.