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Committee recommends $1 water rate increase to cover new loan and meet lender covenant
Summary
The Public Utilities Committee unanimously recommended a $1.00 increase to the minimum and over-1,500-gallon water rates for both in-town and out-of-town customers to meet a new $60,100 annual loan payment and lenders' 115% debt-coverage requirement.
The Public Utilities Committee on May 21 recommended that town council advertise a proposed water rate increase as part of the FY2026-2027 budget. Clerk/Treasurer Amanda Hawkins said the proposal would raise the minimum and the over-1,500-gallon water rate by $1.00 for both in-town and out-of-town customers to cover an added annual loan payment of $60,100 tied to a water project completed in spring 2026 and to satisfy lenders' 115% Debt Coverage Ratio requirement.
Hawkins told the committee that the town eliminated one full-time and one part-time position at the Water Treatment Plant but still faces higher costs from a state-mandated minimum wage increase and a 7% rise in group health insurance premiums. The committee voted unanimously to recommend the increase to council for inclusion in the public hearing advertisement for Ordinance 14-2026; the next step is the council public hearing and formal vote.
