Water and sewer rates proposed to rise as regional sewer district warns of higher electricity, labor and capital costs

Arthur Simonian, executive director of the Mattabassett (Kingwater) Sewer District, told the Middletown Water Pollution Control Authority on April 3 that the district’s fiscal 2026 budget is rising amid higher labor, electricity and capital costs and renewed investment needs for incineration and trunk‑line repairs. “Electricity, unfortunately, went up about $550,000,” Simonian said during his presentation to the board.

The Mattabassett budget packet listed a total budget of about $21,000,005.66 for the coming year and a multi‑percent increase over the prior year; Simonian said the district’s five‑year average flows determine each member town’s operating assessment and noted Middletown makes up roughly 26.6% of average flows while its reserve‑capacity allocation is about 31.6% because of a prior $13 million buy‑in credit that phases out by 2030.

John Dunham, Mattabassett board chairman, told members the district refinanced a Clean Water Fund loan and said reduced debt service helps offset some operating pressures, but ongoing capital needs and higher utility bills are forcing a tighter budget. “We do have to keep the plant in good shape and keep it running for our communities,” Dunham said, noting the board tried to spread costs over multiple years where feasible.

Director Joseph Fizzino presented the local impact to Middletown: staff recommended using reserves to smooth assessments where possible, but the Authority must prepare for higher pass‑through costs from Mattabassett. Fizzino then introduced the Authority’s proposed FY26 rates: raising the water charge from $3.77 to $4.06 per 100 cubic feet (a 7.55% increase) and the sewer charge from $8.02 to $8.48 per 100 cubic feet (a 5.7% increase). He provided sample bill impacts showing an average quarterly residential bill of about $307.60 and an annual average of about $1,229.40 under the proposal.

Board members questioned how the district’s reserve‑capacity allocations had been set and learned Mattabassett plans to revisit the methodology after its bond obligations end in 2030–2031. Simonian said a committee including Middletown representatives will work through potential adjustments in 2026 and that changes to reserve allocations would be performed collectively, not unilaterally by the district.

Operational and capital drivers cited by Mattabassett included: higher electricity charges tied to public‑benefit charges, increases in pension and health costs, targeted capital projects (cone‑valve and trunk‑line repairs), and reinvestment in incinerator equipment because of evolving biosolids disposal constraints such as PFAS concerns. Simonian noted the district uses credits from past member buy‑ins to reduce near‑term assessments, but those credits decline over time.

Next steps: the Authority received the budget and rate proposal for review and discussion; members did not adopt the rates at the April 3 meeting and will consider them in subsequent budgeting and public‑hearing steps required by municipal process.