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Select Board adopts hybrid water rate increase to cover operational shortfall
Summary
Facing a fiscal-27 shortfall driven by restored staffing, license stipends and rising fuel costs, the board adopted a hybrid rate (1% base increase, 5% usage increase) to raise the water enterprise revenue to the level staff recommended.
Town staff presented a fiscal-27 water enterprise shortfall of roughly $223,000, citing restored positions, license stipend increases, potential collective-bargaining costs and sharply higher fuel costs since February. After discussing several rate-mix options that split changes between the fixed base charge and usage tiers, the Select Board approved a hybrid option that raises the base rate by 1% and usage charges by 5% (the board recorded the motion and voted to adopt the option labeled ‘Option 4’ on the rate sheet).
Staff explained the water lean policy (utility bills over 90 days past due are added as a lien to real-estate tax bills) and provided comparators showing Situate remains in the middle of neighboring towns on annual bills after the adjustment. Board members debated whether to put more of the increase into the base to build a reserve against fuel and inflation; the majority opted for a moderate split to spread costs across users while maintaining conservation incentives tied to usage pricing.
The board directed staff to return with implementation and billing language; enforcement and potential drought-restriction fines were discussed for future agendas.
