City holds public hearing on FY27 large-user water rate; GlobalFoundries remains sole large user

The Essex Junction City Council opened a public hearing on the fiscal 2027 large-volume water-user rate as staff reviewed the water fund budget and the calculation used to set a separate large‑user charge. Jess, the finance department presenter, told the council: "Right now, GlobalFoundries is the only large user that we have." She said the FY27 water budget is just over $2,000,000, about a 3.8% increase from FY26, driven by a $50,000 capital reserve contribution to the waterfront, roughly $17,000 in higher admin fees, and nearly $9,000 in increased personnel benefit costs.

Staff explained the large-user rate functions as an administrative pass-through on top of wholesale charges. Jess said the proposed large-user administrative rate would drop (described in the packet as a 7.98% decrease) to $0.158 per thousand gallons because last year's large‑user calculation was higher than needed and this year reflects actual usage. She added that GlobalFoundries also pays wholesale and state water fees directly and that those pass-throughs affect the company's total bill.

Councilors pressed staff on the policy basis for a longstanding 13% figure used in past calculations; Jess said she did not know the original rationale and recommended the council could review the policy. No public speakers addressed the hearing and the chair closed the public hearing after questions. The hearing record will remain part of the FY27 rate-setting process; staff said any over/under collections from GlobalFoundries are trued up annually against actual usage.