Select Board hears FY26 enterprise budget previews for Our Island Home, sewer/stormwater and water
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Summary
Town enterprise fund managers reviewed high‑level FY26 budgets and capital priorities for Our Island Home, the Sewer/Stormwater enterprise and the Water Department; leaders cited rising operating costs, PFAS testing and regulatory pressures, and capital projects tied to the third force main work.
On Feb. 12 the Town of Nantucket Select Board received high‑level previews of fiscal 2026 enterprise budgets for Our Island Home (the town nursing facility), the Sewer & Stormwater enterprise, and the Water Department.
Our Island Home: Peter Holden, administrator for Our Island Home, told the board the FY26 request shows an overall operating increase of about $452,000, driven primarily by payroll (about $361,000 of the increase) for wage adjustments, COLAs and insurance costs. Holden said the facility is focusing on staffing stability, documentation to support higher Medicaid reimbursement rates, and preparation for incoming regulatory survey changes. He noted the facility’s daily staffing metric (PPD) needs to remain above minimum thresholds to avoid Medicare/Medicaid penalties and that the facility is currently serving about 41 residents.
Holden listed several operating increases planned for FY26: heating fuel (+$12,000), electricity (+$11,000), food (+$20,000), medical supplies (+$20,000), pharmacy (+$10,000), employee housing assistance (+$13,000) and propane (+$4,000). He also described capital needs including window replacement, corridor and resident doors, generator replacement and sprinkler system work.
Sewer and stormwater: David Gray, sewer director, reviewed goals and large capital projects tied to the third force‑main construction and CMOM (capacity, management, operations and maintenance) work. Gray said membranes at the treatment plant were recently completed and that year‑two PFAS source testing across streams entering the plant is providing a baseline to inform future treatment plans. He identified potential capital requests including an Airport Road pump‑station upgrade (approximately $1.7 million), Somerset area work (about $3.4 million), Keita Lane improvements (about $1.9 million) and clarifier replacements (about $1.7 million). He also described work to develop stormwater regulations, build a stormwater enterprise, and map stormwater infrastructure in GIS.
Water Department: Water representatives said the department expects FY26 to look similar to recent years but highlighted regulatory pressures tied to PFAS and the EPA’s unregulated contaminant monitoring (UCMR) program. The department said a new North Pasture supply well is under MassDEP review and that planned extensions of water mains will be coordinated with sewer and stormwater street projects. Officials said staffing and customer‑service needs may grow modestly as new connections come online.
Why it matters: Town managers said rising energy, food and chemical costs and emerging PFAS regulations for water and wastewater will increase operating and capital needs. Board members and staff discussed coordinating road work so water, sewer and stormwater replacements occur together to reduce disruption and construction costs.
No formal votes were taken on budgets at this meeting; the presentations serve as previews ahead of budget hearings and the town‑meeting process.