Town reports lower water use, overage processes and FY2026 revenue timing; capital upgrades pushed costs over budget

Interlaken — Town staff briefed the council on FY2026 water billing and the municipality’s broader finances on Jan. 6, reporting a drop in water usage and several areas where timing and capital costs are affecting budget numbers.

Staff told the council FY2026 usage totaled about 8,800,000 gallons compared with roughly 9.9 million the prior year, noting the previous billing period was two weeks longer. Staff attributed part of the reduced usage to faster responses to continuous‑flow alarms and more rapid repairs; one example cited involved a resident, David Lee, whose valve issue was a toilet flapper that was fixed promptly.

The staff presentation showed total billing so far near $267,000 but said collections will depend on late fees and outstanding payments. The council discussed water‑forgiveness procedures: property owners can apply for reduced overage charges if they demonstrate a qualifying leak (not irrigation or hot tub use) and show they made repairs. Staff also said meter installation costs have risen and that the town’s current new‑install fee may not fully cover parts and labor.

On the expense side, staff reported about $47,000 in extra capital costs for water system upgrades (meter replacements and excavation work), and noted legal and road repair expenses have been managed carefully so far. Council asked staff to review water impact and installation fees compared with neighboring Midway and bring recommendations for fee adjustments.

Next steps: staff to finalize water bills, continue outreach on pipe‑leak detection, and return with proposed adjustments to new‑service and impact fees.