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Millis Select Board approves FY26 water, sewer and stormwater rate increases after public hearing
Summary
After a consultant presentation and public comment, the Millis Select Board voted unanimously to increase water rates 12%, sewer rates 2% and the stormwater fee 4% for fiscal year 2026.
The Millis Select Board on June 30 approved increases to the town's utility enterprise rates following a public hearing and a presentation by consulting engineers.
Consultants from Tighe & Bond told the board the water enterprise faces rising operating costs, higher personnel expenses, and a planned transfer from the water fund to a town reserve that together produced a revenue gap of about $200,000 for FY26; the consultants recommended a 12% base rate increase for water to cover projected operating expenses, debt service and to maintain a cash cushion. Josh Bouchard and Hassan Doza of Tighe & Bond led the presentation and said the recommended increase would restore a healthy retained-earnings position for the fund.
The board opened the hearing at the meeting and heard questions from members and from the public. Treasurer-Collector Jen Scannell and town finance staff described a planned $230,000 transfer out of the water enterprise to a town reserve to fund a meter-replacement contract so the town would not need to borrow for that work; the move reduces the amount of operating cash in the water fund and was cited by consultants as a driver of the proposed rate increase. The Select Board and staff clarified that this transfer moves cash for water-related capital work into a general reserve account where the town can use it to pay the meter contract before the next town meeting.
Consultants recommended more modest increases for the other two enterprises. Tighe & Bond recommended a 2% increase to sewer base rates and a 4% increase to the stormwater fee. The consultants said the sewer fund currently meets debt-service and cash-on-hand targets and needs only a small increase to keep pace with inflation; stormwater has low historical retained earnings but rising capital needs after the town completed an asset-management plan, the consultants said.
During public comment resident Kathy McGinnis urged the board to consider increasing developer tie-in fees as an additional revenue source and to compare Millis's charges with neighboring towns. Town staff confirmed the water and sewer tie-in fees were raised 5% last year and said staff will present a comparison of neighboring towns' fees at a future meeting.
After the hearing the board voted unanimously to adopt the three increases for FY26: water 12%, sewer 2% and stormwater 4%. The board also closed the public hearing unanimously at the same meeting.
The board and consultants noted the water fund's larger capital program and the multi-year nature of some large projects (including two PFAS treatment plants the town has recently completed or financed), and said they will revisit multi-year rate and capital scenarios during a five-year financial review scheduled in the coming months.
Votes and next steps: the Select Board opened and closed the hearing and then adopted the FY26 rates by unanimous vote. Staff committed to return with additional comparative fee data and with five-year rate modeling.
