Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Water Rates topic
No spam. Unsubscribe anytime.
North Manchester council hears Baker Tilly on $12.7M water project; typical bill could rise about $15
Summary
Consultants told the council that bids trimmed an estimated $13.5 million water project to about $12.7 million; SRF offered $9.2 million of low-rate loans plus roughly $3 million in forgivable funds. The proposed rate changes, including a fire-protection surcharge, could raise a 3,000-gallon user’s monthly bill from about $25 to roughly $40.
A consultant from Baker Tilly told the Town Council of North Manchester that recent bids lowered the town's expected water project cost from about $13.5 million to roughly $12.7 million and that the State Revolving Fund (SRF) had offered favorable financing that reduces the town's borrowing costs.
The consultant said SRF tentatively committed about $9.2 million under the traditional (lower-rate) loan program and unexpectedly included approximately $3 million in forgivable funds that would not need to be repaid. He added that nearly $444,000 of lead-service-line replacement work could qualify for 0% SRF financing over 35 years, and that green‑project credit provisions might lower interest by as much as 50 basis points for eligible portions of the project.
The presentation framed those SRF elements as offsets to the total bonding need. The consultant also explained SRF's quarterly rate resets and said the town anticipates final SRF rates in a few days; staff will adjust final rate calculations at adoption if SRF rates decline from the levels used in the draft cost‑of‑service model.
On the rate impact, the consultant said a typical residential account (3,000 gallons) would move from roughly $25–$26 per month under the current structure to about $40 per month after the proposed consumption and fire‑protection charges are combined. He said the cost‑of‑service study rebalances subsidies among residential, commercial and industrial classes and isolates fire‑protection readiness as a fixed surcharge rather than burying it entirely in property taxes or general‑fund budgets.
Town Manager Adam Carey and council members said the work and current financing climate make the timing reasonable. Carey also noted draft ordinance language that would allow customers to request meter-size changes, with any material and labor costs billed to the customer.
During the public hearing, resident Dan Kraus of 609 Meadow Lane said rate increases are unpopular but preferable to privatization: “It's not easy to raise rates. Nobody likes it. But we do like services that work and that are managed by our town and not sold to a private company.”
The council held a public hearing on the proposed water rate ordinance and took the ordinance through second reading. Staff told the council they expect final SRF numbers before the next meeting and will return with the adjusted adoption calculations.
Next steps: SRF final interest rates and green‑project calculations will be incorporated into the ordinance before final adoption; the council moved the ordinance forward on second reading and retained the public‑hearing record.
