Merrimac Finance Committee warned of water and wastewater rate hikes as DPW outlines rising costs

At the Jan. 13, 2026 Merrimac Finance Committee meeting, DPW Director Bob Sinibaldi said mounting operational and compliance costs will likely push municipal water and wastewater rates higher.

Sinibaldi told the committee that wastewater expenses have grown because of higher electricity and PFAS testing costs, increased sludge‑handling charges and early design costs for a planned plant project. "We can not get SRF funding until the project is completely designed," he said, adding that sludge now must be shipped by rail to Ohio under state requirements and the town is "actively working on a solution with Waste Management at their new facility in Maine."

On the water side, Sinibaldi said plant energy costs are up about 2.5% and the division faces rehabilitation and replacement work. "There are approximately 40 hydrants that have aged out; it costs roughly $10,000 per hydrant," he said. He also cited a roughly 5% increase in well‑cleaning costs, software contract increases totaling about $4,000, and a $17,000 increase in engineering expenses; the department is projecting a 3% increase in water rates.

Highway and fleet maintenance needs also factored into the DPW presentation. Sinibaldi said vehicle maintenance costs are rising with an aging fleet and asked the committee to consider funding a replacement vehicle from free cash to blunt year‑to‑year increases. He warned that snow‑and‑ice spending will "absolutely" exceed the usual line by about $10,000 this winter. He also reported a parks and recreation playground surfacing line listed in the transcript as "1,4000" for replacement chips; the amount is unclear in the record and will need to be clarified by staff.

Sinibaldi summarized the operational picture as a mix of unavoidable compliance costs and deferred capital needs that, together, make modest rate increases likely. "A rate increase is expected," he said regarding wastewater; he also described a planned 3% water rate increase.

The committee did not take a formal vote on rate-setting at the meeting; Sinibaldi described the cost drivers and next steps for design and funding applications. He said engineering work must be finished before the town can pursue State Revolving Fund (SRF) financing for plant construction.

Votes at a glance • Approve Oct. 25, 2025 minutes — Mover: Michael Marden; Seconder: David Luoma; Result recorded as passed (ayes listed, see meeting minutes). • Approve Jan. 7, 2026 minutes — Mover: Corey Cane; Seconder: Michael Marden; Result recorded as passed. • Adjourn meeting at 6:24 p.m. — Mover: Michael Marden; Seconder: Ken Tingle; Result recorded as passed.

What happens next: DPW staff will continue plant design work required for SRF eligibility and return with clarified cost and funding recommendations; the committee did not adopt rates at this session.