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WPCA reviews five-year financial model and schedules public hearing on proposed sewer rates
Summary
Woodard & Curran presented a five-year WPCA financial plan that models 4.5% annual sewer rate increases, assumes large capital needs (about $46M across collection, treatment and pump upgrades), and the board scheduled a public hearing on Feb. 17, 2026 to consider proposed rates.
Woodard & Curran presented a five-year financial plan to the Norwalk Water Pollution Control Authority on Jan. 20 that projects continuing capital needs and models an annual 4.5% increase to sewer rates as a fiscally responsible path under current assumptions.
James Aiken, national utility rate analyst at Woodard & Curran, described assumptions underlying the forecast: fiscal 2026 as the base year, a forecast period covering fiscal years 2027–2031, an operating reserve target equal to about seven months of operating budget (roughly 60%), a debt service coverage target of 1.05x, an assumed 3.5% annual escalation for expenses, and a 4.6% interest rate on assumed 30-year general obligation bond financing. The model assumes customer accounts and flows remain level and budgets in future years include provisions for uncollectible accounts and build adjustments.
Aiken and staff said capital requests in the five‑year window include $28 million for sanitary sewer collection system work, $10 million for treatment plant rehabilitation and $8.25 million for pump station upgrades. The presenter showed a current-year budget gap of roughly $800,000 (revenues about $21.3 million and expenses about $22.1 million) and projected reserves declining from about $20.7 million to roughly $13.0 million by the end of the five‑year projection under the modeled scenario.
On the customer impact, the model shows a residential single‑family fee increased by 4.5% annually under the baseline pathway, with the illustrative fee rising toward about $5.40 by fiscal 2031 under the stated assumptions.
Board members and staff repeatedly emphasized that the model is dynamic: officials said it is conservative and can be updated each year as grant awards, FEMA reimbursements, or consent order guidance become clearer. Ralph Kolb, senior environmental engineer for the WPCA, said the team is not including speculative grant proceeds in the model until funding is firmly committed.
After discussion, the board voted unanimously to schedule a public hearing on proposed sewer rates for Tuesday, Feb. 17, 2026, at 5:30 p.m. That hearing is the next formal step before any rate adoption vote.
The financial model will return to the board with additional context at future meetings and may be updated if FEMA, EDA, or CTDEEP decisions change projected capital funding needs.
