Finance committee recommends revised water, sewer rates and loan orders to fund treatment plant and mains

The Bridgewater Town Finance Committee on Wednesday recommended a set of FY27 water and sewer rate changes and voted to approve loan authorizations intended to fund critical water‑system projects, including a permanent treatment plant for Wells 10A and 10B.

Town Manager Justin introduced the rate recommendations prepared by an outside consultant and told the committee the water enterprise met its revenue target this year, noting: "we meet met our targets this year" and that the consultant’s plan shifts more revenue to volumetric charges so "the average user of water is paying less under this rate structure than they would have in the prior rate structure." He said the changes are intended to achieve cost recovery for the utility and to create a revenue stream for infrastructure work without drawing on the general fund.

Committee members pressed staff on how confident they were in the five‑year projections and on the composition and number of large commercial users in the highest tier. Justin said the town will review the rates annually and adjust as needed: "we're going to look at this on an annual basis" to avoid surprise spikes. Lori added that the town had historically underfunded infrastructure and that recent large increases (she cited a prior 50% sewer increase) reflected the need to catch up on deferred maintenance.

On project financing, Justin described a revised loan authorization that increases the previously authorized figure to give the town flexibility to build a permanent treatment plant at 10/10B to address iron, manganese and PFAS concerns and to accelerate some urgent water‑main replacements. "This will be a permanent plant for 10 and 10b to turn those wells online," he said, and staff described a $2.0 million Emerging Contaminants grant that will offset part of the total program. Committee members asked whether pulling projects forward would displace other capital work; staff said the adjustment represents about $1.1 million of additional town authorization beyond the original $7.4 million and that grant and SRF (State Revolving Fund) applications are expected to reduce net borrowing costs.

The committee conducted two recorded roll‑call motions: to resend the prior Plymouth Street Wells authorization and to recommend the updated water‑system loan order. Both motions passed by unanimous roll call of members present. The committee also recommended the FY27 water rates and the corrected FY27 sewer tiers (0–15, 15–30, 30+) by roll call vote.

Looking ahead, staff said the town will continue to pursue SRF loans, federal earmarks and other grants, and will revisit rate performance annually. Justin announced a forthcoming public water forum to explain the projects and answer residents’ questions.

The committee’s actions now go to the full council for final consideration; staff said the loan authorization provides the town authority to borrow as needed while continuing to apply for low‑interest loans and grants to reduce the burden on ratepayers.