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Select Board approves sewer rate increase and starts phase-out of connection-fees
Summary
To cover an estimated FY27 shortfall (~$183,000) and reduce reliance on one-time connection fees, the board approved a 2% base and 6.5% usage increase and endorsed a five-year phase-out plan for connection fees to move to recurring revenue.
Sewer staff told the Select Board the sewer enterprise faces an estimated fiscal-27 shortfall of about $183,000 driven by increased repairs, sludge disposal costs and contractual expenses. The staff recommended a rate adjustment plus a multi-year phase-out of sewer connection fees (nonrecurring revenue) to better align recurring revenue with recurring operational and capital needs.
After discussing options, the board voted to adopt an option that raises the sewer base rate by 2% and usage charges by 6.5% (the board-recorded motion labeled ‘Option 5’). Staff will begin phasing out connection fees over five years so that recurring rates support ongoing operations and capital planning, while retained earnings/capitals are used in case of a future construction boom to limit borrowing.
Board members expressed concern about the revenue shortfall if connection fees drop quickly, and staff said they would monitor revenue and return with updated forecasts as projects and development activity evolve.
