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Select Board approves modest water and sewer rate increases to cover water project costs
Summary
The board approved water and sewer rate changes for FY26–27 — water +4.9%, sewer +3.69% (combined average residential ~4.2%) — citing a $7.2 million water project whose first-year payment (~$90,380) is a primary driver; financing was described as 50% grant forgiveness plus a 40‑year 0% interest loan as presented.
Lori, speaking for the water and sewer commission, presented the FY26–27 budgets and recommended rate changes to support them: a 4.9% increase in water rates and a 3.69% increase in sewer rates, which Lori said equates to an average combined increase of about 4.2% for typical residential customers.
"The water proposed change is a 4.9% increase and the sewer department is 3.69," Lori said, noting the primary driver for the water increase is a $7.2 million water project. She said the town anticipates its first payment on that loan in the coming fiscal year (presented figure: about $90,380 annually). Lori described the financing as including 50% grant forgiveness and the remainder structured as a 0% interest loan over 40 years as presented to the board.
Board members asked about revenue trends and usage. Staff said average residential usage has declined approximately 3% this year and roughly 17% over the past decade, citing customer conservation and the loss of one large non‑residential customer as contributing factors. Board members and staff discussed using surplus funds to limit rate shock and the limitations of surplus balances over time.
After discussion, a motion to adopt the rates as outlined by Lori was moved and seconded; the board voted in favor and the rates were approved as presented.
What this means: Residential customers will see modest increases next year to support debt service on a major water capital project. Staff acknowledged longer‑term capital planning remains necessary and recommended monitoring usage and revenue to inform future rate decisions.
The board also reviewed related electric budget background and broader utility planning while emphasizing the need to maintain competitive rates and prepare for future borrowing when larger capital projects arise.
