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Middletown touts Goshen water deal and Indigo project as revenue paths for aging systems
Summary
Council heard updates that a recently approved Goshen intermunicipal water agreement could generate about $2.2 million when fully implemented and that an Indigo groundwater project under study could bring over $5 million in annual revenue; officials said proceeds would support water/sewer infrastructure investments.
The Middletown Common Council on Nov. 2 heard detailed updates on water and sewer plans that city leaders say will help finance long‑overdue infrastructure work.
DPW officials reported reservoir storage at roughly 74% and warned the city has seen below‑average rainfall in recent months. The city described two revenue strategies: an intermunicipal agreement with the Town of Goshen that the Board of Estimate recently approved and a consultant study of a larger groundwater or reservoir project referred to as “Indigo.”
Mayor and staff said the Goshen agreement, when fully implemented, is estimated to generate “about 2,200,000 under current rates,” a revenue stream the city expects to use for ongoing repair and replacement of water mains and sewer infrastructure.
The DPW commissioner described Indigo as a potentially "monumental" supplemental water source and said the city retained a firm (identified in the meeting as CDM) to analyze distribution and feasibility. The mayor said the Indigo distribution could involve neighboring townships and estimated the project could yield more than $5 million a year under one scenario.
Officials warned that the water and sewer systems are more than a century old and that debt service pressures have increased: the mayor noted interest earnings of about $1,600,000 are being applied to debt payments rather than operations. The city is framing water wholesaling and intermunicipal agreements as one tool to avoid relying solely on user‑rate increases.
Council later approved a resolution authorizing the intermunicipal agreements with Goshen by unanimous vote.
City staff said next steps include finalizing consultant reports, awarding contracts for project phases as the O&W redevelopment closes, and continuing Board of Estimate and council oversight as projects move from study to implementation.
