Sewer director warns of deficit and possible sharp rate increases without new funding

Sewer Director Scott Sobey told commissioners July 23 the wastewater enterprise faces immediate fiscal pressure tied to large capital projects and upcoming debt service. "We're upside down $800,000, period," Scott said, explaining that paying $1,300,000 toward debt for a $36,000,000 project from the enterprise fund would create a shortfall unless the town uses retained earnings or secures outside funding.

Scott outlined options the board could consider: using retained earnings to smooth the first five years of debt impact, pursuing grant funding to lower the town share, or adopting a planned, phased rate increase to avoid a sudden spike. He said modelling suggested an illustrative increase of roughly 23% per EDU under the current schedule, and offered a longer‑term pro forma the board could request from vendors that combine financial forecasting and outreach.

Commissioners discussed mechanics and constraints. The board noted a $1,500,000 transfer to a Sewer Capital Stabilization Fund (Article S16 at the spring town meeting) exists but the staff needs to verify whether funds can be moved from that stabilization fund into operating accounts without additional town‑meeting action. Scott said some loan forgiveness had been obtained but the debt schedule still requires principal and interest payments that will affect near‑term cash flow.

Members emphasized the need for clearer forecasting to present concrete per‑customer impacts to residents rather than estimates. "How much is this gonna cost me?" a commissioner asked; Scott said the proposed RFQ and vendor presentations are intended to produce the specific pro formas and materials the board needs to explain rate proposals to the public.