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Consultant recommends 5.5% initial water/sewer rate increase; council to consider action in December
Summary
Town finance staff and NewGen consultant presented a rate plan to smooth revenue against $52 million in projects and a $4 million TRA interceptor cost; the plan would start with a 5.5% increase and a phased structural change to the highest tier.
John (finance staff) reported the town's cash and investment book value was about $114 million with roughly $1.3 million in interest earnings, and he described capital spending tied to the Star Center and other projects.
Matthew Garrett of NewGen presented the water and sewer rate study, recommending a 5.5% increase initially followed by phased adjustments over a five‑year horizon to avoid large catch‑up increases later. Garrett told council the plan was designed to smooth rates while funding about $52,000,000 in projects over five years and a roughly $4,000,000 TRA interceptor improvement. He showed an example residential bill rising from $1.57 to $1.66 initially and projected an increase to about $2.11 by year five for a median customer.
Garrett warned that not raising rates could lower debt‑service coverage, hurt bond ratings and increase borrowing costs, and potentially expose the town to regulatory fines if required capacity projects are delayed. Council discussed consequences of skipping increases, possible protections for families with high seasonal use, and directed staff to bring an action item in December for a January 2, 2026 effective date if adopted.
