Hertford council debates COLA, utility rate changes and approves letter raising Winfall wastewater charges

The Hertford Town Council on April 10 discussed FY23-24 budget options, utility-rate changes and a proposed revision of a 2001 contract that would increase wastewater charges to neighboring Winfall.

Town Manager Janice McKenzie Cole told council the formal budget was not ready for presentation but led discussion about employee cost-of-living adjustments after noting Social Security’s CPI‑based figure of 8.7% and the state governor’s recommendation of an 8% COLA (5% the first year, 3% the second). Council members said retention and turnover costs have been substantial and asked Cole to prepare two budget options: one showing a 4% COLA and another a 5% COLA. Council also discussed retention bonuses and sign‑on incentives as options to reduce turnover-related costs.

On utility rates, Cole recommended base-charge increases for electricity customers and higher demand charges for small commercial users, citing expected annual increases in purchased electricity through 2027 and an aging town system. Council agreed to build the FY23-24 budget using base-rate increases recommended by ElectriCities and to present a balanced budget at the April 24 work session.

Council also considered terms of a 2001 contract with the Town of Winfall for wastewater treatment services. Cole said the contract allows Hertford to modify terms and that the town last adjusted charges for Winfall in fiscal year 2011–12. Using Winfall’s usage and Hertford’s FY22-23 budget figures, Cole said Hertford was proposing to raise Winfall’s monthly fixed rate by 53% and variable costs by 66% to reflect higher salaries, maintenance costs, chemical costs and other inflation since the last adjustment. "Hertford is proposing to raise Winfall's monthly fixed rate by 53% and variable costs by 66%, as no cost adjustments have been made to Winfall in 11-12 years," Cole said. The council approved a motion to send the proposed letter to Winfall (motion by Councilman Jerry Mimlitsch; second by Councilwoman Connie Brothers; vote 5-0).

Mayor Pro Tem Ashley Hodges framed the action as part of an ongoing partnership: "we are in partnership with Winfall, and future budgets cannot overlook this contract and the costs," he said, urging review of cost sharing in future budget seasons.

Manager Cole reported a separate billing error beginning July 1, 2022 that underbilled some small commercial customers for usage above 3,000 kWh. She said the error has been corrected for the current billing cycle and that the town will send letters to affected customers to arrange repayment plans; Attorney John Leidy confirmed the manager has discretion to negotiate repayment schedules. The council also voted to require two staff members to verify future rate changes in the billing system to prevent similar errors.

Other business included approval of a resolution to participate in a regional Golden Leaf grant application and personnel announcements: the council selected preferred dates for a Harbor Towns celebration in mid‑May and was scheduled to welcome David Forsythe as Public Works Director effective May 1.

The council adjourned at 7:57 p.m.

Next steps: staff will prepare the two budget options (4% and 5% COLA), include ElectriCities' rate recommendations in the draft budget, and transmit the approved letter to Winfall.