Budget committee recommends $2.38 million Rye Water District operating budget; approves West Road testing and new reserve funds

The Town of Rye Budget Committee unanimously recommended a $2,378,139 operating budget for the Rye Water District and approved related capital warrant articles during a public hearing on Jan. 28, 2026, at Town Hall.

The recommendations covered Article 03 (operating budget) and Articles 04–07, which include a $250,000 non-lapsing appropriation for testing and permitting at the West Road site, a $100,000 Water Treatment Capital Reserve Fund (CRF), a $100,000 addition to the System Replacement CRF and a motion to discontinue the Contingency Expendable Trust Fund. Clerk Steven Borne moved to recommend Article 03; the motion was seconded by Tim Durkin and the committee voted 8–0 to recommend the article.

Why it matters: the operating budget sets the district's spending level for general operations and to defray Water District charges for the coming year. The capital articles create or add to funds intended to cover testing, design, construction, maintenance and distribution system work; the West Road testing article is non-lapsing through Dec. 31, 2028, and is described as having no tax impact because it draws on the unassigned fund balance.

Article specifics and votes - Article 03 (Operating Budget): Motion to recommend by Clerk Steven Borne, seconded by Tim Durkin. Vote to recommend: 8–0 in favor (Kate Dumas, Steven Borne, Richard Furber, Tim Durkin, Frank Drake, Scott Marion, Scott McQuade, Bill Christo). - Article 04 (West Road Site testing and permitting, $250,000): Moved to recommend by Chair Kate Dumas, seconded by Steven Borne; vote to recommend: 8–0. The article is a non-lapsing appropriation per RSA 32:7, VI and is to come from the unassigned fund balance; the warrant language states it has no tax impact and will not lapse until testing and permitting are complete or Dec. 31, 2028, whichever is sooner. - Article 05 (Establish Water Treatment CRF, add $100,000): Motion by Rye Water District Rep Scott Marion, seconded by Steven Borne; voted to recommend 8–0. The warrant specifies the CRF may be used for design, construction, maintenance and associated consultant and legal costs, and notes the fund can be used in part for debt service pursuant to RSA 35:15,III(a). This article is dependent on the discontinuance of the Contingency Expendable Trust Fund in Article 07 and is null and void if Article 07 fails. - Article 06 (System Replacement CRF, add $100,000): Moved by Chair Kate Dumas, seconded by Scott Marion; voted to recommend 8–0. The article adds to the CRF established in 1995 for modifying, replacing or enlarging the distribution system and is dependent on Article 07. - Article 07 (Discontinue Contingency Expendable Trust Fund): Motioned by Select Board Rep Scott McQuade, seconded by Tim Durkin; voted to recommend 8–0. The motion directs transfer of the fund balance and accumulated interest to the district’s general fund unassigned balance.

Dependence and fund flow: committee discussion noted how funds flow from contingency to the general fund unassigned balance and then to the unassigned account, and how Articles 05 and 06 are conditioned on discontinuing the contingency fund under Article 07. Committee members referenced diagrams and project pages provided in the packet while reviewing the funding mechanics.

What was not decided: the public hearing was recommendation-only; actions recorded were votes to recommend articles to the district meeting. No final district appropriations were adopted at the hearing itself. The committee did not change the dollar amounts in the warrant language during the hearing.

Next steps: recommended warrant articles will move forward to the district annual meeting for final action.