Council reviews water and sewer budgets as Route 460 debt service approaches

At the work session, town financial staff reviewed the proposed 2026–27 water and sewer fund budgets and the rate history that underpins them.

Staff said the in‑town water base for 2,000 gallons is proposed at $30.97 with an overage charge of $12.15; out‑of‑town rates and overage were also higher. The presenter emphasized that this year is the last in a planned sequence of preset rate increases and that next year the town will reassess rates comprehensively.

The rate increases were described as modest relative to earlier years but necessary to fund forthcoming debt service for the Route 460 waterline replacement project, which staff said will begin debt service in March 2027. Staff projected roughly $1.5 million in water fund receipts for the 2026–27 period using the town’s lowest monthly consumption multiplied by the proposed rates to estimate conservative revenue.

On sewer, staff summarized that the town owns 60 percent of the wastewater treatment plant while the PSA owns 40 percent; the town and PSA perform an annual “true up” so each pays its assessed share. Sewer rate increases over recent years have been larger than water rate increases, staff said, and the town is setting aside additional funds in LGIP for future debt payments related to the wastewater treatment plant upgrade.

Councilors asked about the potential sale of the PSA to a private company (reported as hearsay); staff said there had been discussions but that votes were not in place and that any sale could change future purchased‑water costs. Staff and councilors also discussed the possibility — not costed in the meeting — of buying the water plant back from the PSA; staff said they did not have figures available.

Next steps: staff will return with a full rate review next year if necessary, and council will continue setting aside funds for Route 460 and wastewater treatment plant debt service.