Middletown council moves forward on Goshen intermunicipal water deal; ‘Indigo’ plan could add revenue
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Summary
The Common Council approved a resolution authorizing intermunicipal agreements with the Town of Goshen for water and wastewater services; city officials said the Goshen deal and a separate 'Indigo' project could generate new revenues to address growing debt-service pressure on aging infrastructure.
The Common Council approved a resolution authorizing intermunicipal agreements with the Town of Goshen for the provision of water and wastewater services and heard an update on broader water‑resource strategies aimed at offsetting rising infrastructure debt.
Mayor Miguel Rodriguez described the city’s water and sewer system as "100 plus years old" and said debt service consumes roughly one‑third of the water fund budget and is trending up about 7% annually. He told the council the Board of Estimate approved the Goshen deal and said it is estimated to generate about $2.2 million annually under current rates once fully implemented.
"It's not sustainable at the system that we're doing now, and that's why we projected, we've been getting into the business of wholesaling water and sewer," Rodriguez said, explaining the revenue rationale for selling services to neighboring municipalities.
City staff also outlined a parallel project the mayor called "Indigo," which he said could be "much more lucrative" with potential revenues above $5 million a year. Rodriguez said the city has hired CDM to perform analysis related to distribution and planning.
DPW Commissioner Jacob gave operational context: reservoir storage stood at about 74% after a drier period, and the department is preparing systems and permits required for any future skimming from Indigo Creek subject to New York State Department of Environmental Conservation discharge requirements.
"We need the water, and that will supplement the jobs and economic development," Jacob told the council, adding that additional water supply is a precondition for continued development and planning in the region.
The council's vote to authorize the Goshen agreement passed by roll call (see "Votes at a glance" article for the full tally and formal motion language). The mayor and DPW described steps ahead: consultant analysis, intermunicipal coordination, and contract closings that staff said are expected to advance over the next two years.
