Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Water Infrastructure topic
No spam. Unsubscribe anytime.
Select Board presentation outlines $6.4 million plan to acquire, upgrade West Swanzey water system
Summary
Town staff presented a plan to acquire the private West Swanzey Water Company and build new pump and storage infrastructure; the proposal would carry an estimated $6.4 million price tag and rely on New Hampshire Clean Water SRF funding that includes unusually large principal forgiveness.
Town staff told the Swansea Select Board that the town could buy the private West Swanzey Water Company and complete a turnkey upgrade of pumps, a new pump house and a larger storage tank at an estimated project cost of $6.4 million.
Presenters said the work, as outlined in a 2024 study by Underwood Engineers, would include purchasing the company (estimated about $600,000), constructing a new pump house (about $2.5 million) and building a storage tank (about $3.3 million) plus a new main to connect the tank to the system. The study identified two active wells, one inactive well, and aging infrastructure that limits storage, fire flow and the number of new service connections.
The town is pursuing a Clean Water State Revolving Fund (SRF) loan administered by the New Hampshire Department of Environmental Services. Staff said DES is offering a loan package with roughly 40% principal forgiveness on the construction loan — an unusually large amount they characterized as “unlikely to be offered again next year.” That 40% forgiveness would reduce the principal the town must repay; staff modeled repayment and rates on the remaining 60% of the loan.
Staff estimated the change in annual residential water bills would be large: a typical residential account’s annual bill could rise from about $600 now to roughly $1,600 under the town-run, debt-funded plan, or an increase on the order of $1,000 per year for typical customers. Officials said additional grant funding and more connections over time would reduce that per-customer burden. Staff also estimated a modest municipal tax-rate impact — on the order of a few pennies per $1,000 of assessed value — to cover roughly 20% of the project costs.
Presenters said acquiring and upgrading the system would allow more service connections (including along Route 10), improved fire flows and a modernized facility that meets current operating standards. They emphasized the purchase would be structured so capital costs are separated from the town’s general fund (citing the relevant finance authority the meeting will consider later), and that operation as a municipal system offers access to low-cost capital not typically available to private utilities.
Concerns from residents and operators centered on user costs, long-term viability and wastewater treatment capacity. A former wastewater operator and other meeting participants asked whether the town’s wastewater treatment plant could handle increased flow if new development proceeded along Route 10; public works staff said a separate planning study of the wastewater plant is already under way and that upgrades will likely be required regardless of the water-utility decision.
Town staff said if the articles authorizing acquisition and the SRF financing both pass at the ballot meeting, the select board would negotiate purchase terms with the current owner and then hold a ratification warrant article or a special meeting to finalize acquisition.
Ending: Select Board members and staff scheduled additional public information sessions and said they will continue applying for grants that could lower costs to current users before any final purchase or construction contract is awarded.
