Water and sewer rates are expected to rise in fiscal year 2027 as the town addresses increased operating expenses and prepares for significant infrastructure upgrades. The proposed adjustment would add approximately $52 per year to residents’ bills.
Director of Finance Patrick Luddy presented the proposed water and sewer rates during the Select Board’s meeting Tuesday. The discussion is held annually, and the new rates will first appear on bills issued Aug. 15.
Luddy is recommending an increase to the sewer consumption and base rates by 4%, which would in turn allow the town to retain a projected earnings of 32.2% of budget at the end of hte 2027 fiscal year.
He is also suggesting a 3% increase to water consumption and base rates, which would lead to a projected retained earnings of 47.9% of the budget at the end of the 2027 fiscal year.
“Those are funds that would help support the capital costs,” Luddy said. “This is in line with what we talked about last year when we were considering a large increase and the board was looking at the future and how we would have stability moving forward.”
Last year’s increases combined was around 18%, according to Luddy.
“One of the biggest complaints I have heard is the increase to the water and sewer bill and how hard it has been on residents, so I would like to see a number lower than 4%,” Select Board Member Mary Ellen Fletcher said.
Select Board Member Wayne Spritz also asked for lost revenue from inaccurate meter readings and water main breaks.
Including indirect costs, the sewer fund budget is increasing 7.3%, while the water fund budget is increasing 6%. The budgets were approved at Town Meeting in May.
Luddy said the additional revenue will help fund capital improvements over the next five years, with $5.76 million allocated for sewer projects and $6.25 million for water infrastructure.
“Both of those require a significant amount of debt service to pay for those costs, as well as projects that have already been approved and borrowed for” Luddy said. “There’s some significant needs that are coming in the next few years that we’re all aware of that are going to require our revenues to support.”
Preliminary fiscal year 2026 results show the sewer fund is expected to retain $1.02 million in earnings, equal to 29% of its operating budget, up 17% from the previous year.
The water fund is projected to retain $1.49 million in earnings, or 33% of its operating budget, an 8% increase from the previous fiscal year.
Town policy calls for each fund to maintain retained earnings equal to at least 20% of its operating budget.
“This is well within our policy,” Luddy said. “In the past, as of our last certification, both funds were below policy.”
Select Board Vice Chair Danielle Leonard noted that the large increase last fiscal year was to “try to fix some of the mistakes we made in the past” and bring the town back on track.
Luddy said he expects to return to the Select Board for approval at its next meeting.
