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Middletown authority adopts sewer rate, endorses $1.5M loan and capital budgets as council approves water rate
Summary
At its May 7 meeting the Middletown Water Pollution Control Authority adopted a sewer use charge, endorsed a $1.5 million interfund loan to the sewer operating fund and approved $600,000 capital budgets for both water and sewer; the City Council separately approved the proposed water rate.
The Middletown Water Pollution Control Authority on May 7 approved a new sewer use charge and moved a set of budget actions and a short-term loan to shore up sewer operations.
At the start of a special meeting on sewer billing, staff read the legal notice and the board voted to adopt the sewer use charge at $8.75 per 100 cubic feet, effective July 1, 2026. Staff read the adopted language for the sewer use charge and the board approved the motion by voice vote.
The authority also endorsed a one-year interfund loan of $1,500,000 from the general sewer improvement fund balance to the sewer operating fund, with repayment scheduled no later than June 30, 2027. Staff presented the resolution and members voted to approve the loan to cover an anticipated cash shortfall in the operating fund before FY27 revenues are received.
Separately, staff presented capital nonrecurring (CNR) packages for FY26–27: the water department outlined a $600,000 package that included vehicle replacement, water-meter purchases, treatment-station repairs and SCADA improvements; the sewer department proposed a $600,000 CNR package focused on pump-station repairs, vehicle replacement and GIS equipment. The board moved both recommendations forward for finance and council processing and approved them by voice vote.
Staff told the board the City Council had held a public hearing on Monday and approved the city water-rate resolution for FY26–27 setting the water rate at $4.67 per 100 cubic feet; staff said meter-use charges remain unchanged and the effective date for water and sewer changes is July 1, 2026.
The board also adopted a formal goodwill-adjustment policy to handle customer financial-hardship appeals. The policy requires documentation of hardship (medical emergency or extended unemployment), that the account have been current prior to the special condition, a good-faith payment of 10% of the agreed bill (not to exceed $3,000) before the appeal moves forward, and that the adjustment be limited to owner-occupied primary residences (commercial or income-producing properties are excluded). Staff said appeals will be reviewed case by case.
"The sewer use charge shall be at the rate of $8.75 per 100 cubic feet," staff read during the hearing. On the water rate, staff said the council "approved" the resolution establishing $4.67 per 100 cubic feet for FY26–27.
What happens next: the new charges are scheduled to take effect July 1, 2026; the interfund loan is due by June 30, 2027; and staff will carry the approved CNR packages forward to finance and council action as required. The authority intends to continue outreach to customers about the rate changes and the hardship-adjustment process.
