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Financial workshop: consultants say Well 10 will raise water rates; board approves $14.50 sewer increase for 2026
Summary
Ehlers presented a 10‑year outlook showing that adding a new well project would materially raise the utility rate base; consultants estimated a 30%+ water rate adjustment could be needed and recommended early PSC engagement. Trustees approved a $14.50 quarterly sewer rate increase for 2026.
At a financial management workshop Dec. 15, Ehlers consultant Brian reviewed how adding major capital — including the proposed Well 10 project — affects the village’s water rate base and noted the village likely would not be eligible for the PSC simplified rate case, which limits the village’s short‑term options.
Brian explained PSC procedures for simplified and conventional rate cases and showed modeling that indicated, depending on timing and financing, a water rate adjustment in the 30%–39% range could be required to preserve debt‑coverage targets if the Well 10 project proceeds on the higher end of cost estimates. He emphasized the need to time rate filings and loan closings carefully and to begin PSC application steps early.
On the sewer side, the board voted to adopt a recommended rate change that will increase sewer bills by $14.50 per quarter for 2026 (a motion to do so passed after discussion of a gradual approach to spreading costs across future years). Brian noted the village has about $620,000 in cash that could be applied to projects to reduce borrowing but said even with cash application, rate increases are likely necessary to maintain coverage.
Trustees discussed timing, affordability metrics and the sensitivity of rate impacts to project scope and potential principal forgiveness. Brian said principal forgiveness under the state program could be difficult to secure given the village’s demographics and median household income, though technical forgiveness for emerging contaminant projects may be possible. He recommended continued refinement of project costs as bids and plans come in and periodic updates to the board.
