Consultant says Middlebury’s water finances look healthy; sewer may need a rate increase if 2027 project proceeds

Amber Nielsen of Baker Tilly presented the utilities portion of the 2025 council report and a five‑year financial plan. She told councilors "Water utility did decrease some fund balances, but that was all project spending from 2024," and added that operating receipts for water were roughly $500,000 higher than in 2024. Nielsen said water fund balances remain above recommended reserves and, based on current assumptions and estimated project costs, "water may not need an in a rate increase to do that project and sustain those additional debt service payments." She noted the SRF project priority list will be released late June/early July and that bids and interest rates could change the outcome.

On sewer, Nielsen said sewer fund balances increased by about $514,000 as of Dec. 31, 2025, but cautioned that forecasted capital spending and a possible 2027 bond could require rate changes. She told the council that, with present estimates, a sewer rate increase could be required and that an estimate under current assumptions was around 45 percent; she framed the figure as a forecast contingent on project timing, bids and interest rates, and recommended the council consider phasing options if necessary. Nielsen offered to provide scenarios showing incremental approaches to rate adjustments.