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Commission debates 15% reserve policy, rate‑setting timeline and SRF delay for plant work
Summary
Commissioners discussed adopting a 15% unrestricted reserve policy, a schedule for sample rates and the likelihood that state DWSRF approval and required easements will delay plant and line replacement work beyond this summer.
Commissioners and staff discussed options for reserves, near‑term rates and the timing of major capital projects after auditors reviewed the FY24 water and sewer statements.
Staff presented a year‑end unrestricted balance for water of about $156,000 and a draft FY26 water budget of roughly $387,000; using a 15% reserve guideline (the select board adopted a 15% target in fall 2023), staff projected available cash of about $119,000 after a 15% holdback. A commission member proposed drafting a policy to set unrestricted reserves at 15% so the commission could consider whether to use reserve dollars to lower next year’s rates or to set aside funds for upcoming projects.
The commission also discussed the schedule to set rates. Staff said the rate model requires a full 12 months of usage data (April 1–March 31) and that sample rates would be available once staff completes the look‑back; members planned follow‑up work in early April and targeted the annual meeting in May for final decisions on rates.
On capital projects, staff reported the Cochran Road/Bridge Street water‑line and other plant work are subject to the state DWSRF loan review; several easements remain to be secured and state approval is required before going to bid, making a summer construction start uncertain. Commissioners noted large upgrades such as a full plant replacement will likely require bonding and cannot be fully pre-funded from reserves.
No final policy vote or rate adoption was recorded in the transcript; staff will return with refined spreadsheets, sample rates and a line‑item list of expected repairs and purchases for the next meeting.
