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Council hears utilities fiscal report; staff cites one-time $629,000 charge and forecasts improved 2026 position
Summary
Town finance staff presented the 2025 utilities report and a 2026 pro forma, noting a $629,000 one-time payment that shifted water operating results; staff said removing that payment improves 2026 coverage ratios and increases bonding capacity, and explained a salary-allocation adjustment affecting the utilities wage fund.
Town finance staff presented the 2025 utilities breakdown and an estimated 2026 pro forma, explaining a one-time $629,000 payment to Boeing Engineering for a 10th Street water-main project that had been booked as an operating cost in prior years and skews comparative results.
Caitlin, who introduced herself from finance, explained how the $190,487 wage adjustment on the utilities salary lines was calculated: by reallocating ordinance-required salary splits among town sewer, water and storm departments and applying approved 2026 increases. "The way that we looked at it is we broke down every salary that comes out of the utilities ... and that is what derived our adjustment," she said.
Council members questioned coverage ratios and debt-capacity calculations. Staff described the debt-capacity method as taking revenues available for debt service, applying a coverage multiplier (1.25) and subtracting current debt to yield an annual capacity figure. After accounting for the $629,000 payment, staff said the forecasted water coverage would be healthy (above the 125% target), improving bonding capacity.
Councilors flagged the town’s shortfall relative to large upcoming projects and sought creative financing options. Staff committed to distribute updated backup schedules and supporting documents so members could review the adjusted figures off-line.
No formal action was taken; the exchange produced staff commitments to provide detailed backup and updated schedules for the water and sewer pro forma.
