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Wayland BoPW flagged large FY27 water shortfall tied to $38.2M project; PFAS funds recommended for mitigation
Summary
Consultant Matt Abrahams and DPW Director Tom Holder told the Board the water model shows a large FY27 deficit driven by new debt for a $38.2 million dual-source project and higher operating costs; Holder also noted Wayland expects $2 million in PFAS litigation funds (about $660,000 received) and recommended those funds be used for PFAS mitigation.
Consultant Matt Abrahams presented the town’s water-enterprise financial model on May 19 and warned of a projected FY27 shortfall driven largely by debt related to a $38.2 million dual-source project and added operating expenses tied to anticipated MWRA water purchases.
Abrahams highlighted existing debt on the books versus new debt for the dual-source project and noted the model includes an MWRA purchase line beginning in 2030. He confirmed the projected figures include an estimated interest rate and said the model projects "expenses will exceed revenues and that the contingency fund will be overspent as well." Director Tom Holder agreed and said the Select Board’s policy recommends retained earnings of at least 25%, though Abrahams recommended modeling between 10% and 25% depending on local factors.
Holder told the Board he is preparing to pursue conventional borrowing this summer, will update the SRF Project Evaluation Form by the end of July, and has submitted a congressional directed spending request for $4 million through the Senate and to Congresswoman Katherine Clark’s office (no response yet). He also noted litigation settlements for PFAS could total $2 million over 10 years for Wayland, and the town has received about $660,000 to date; Holder suggested the BoPW ask the Select Board to direct those funds to PFAS mitigation.
