The Board of Selectmen on Jan. 14 adopted a 5% increase to water and sewer user charges, effective March 1, 2025, after a public hearing that included a staff presentation on system condition, revenue volatility and planned capital work.
Jeff O’Neil, the town’s finance director, and Mark Ryan, director of public works, outlined operating results and capital pressures. They said unaccounted water has declined since the town began a multi‑year pipe cleaning and lining program: unaccounted water fell to about 7.6% in calendar 2023 after leak detection and relining work. The town is continuing a 10‑year water main cleaning/lining program intended to reduce leaks and long‑term operating costs.
Staff presented three rate options: no immediate increase (with a projected need for a larger July increase), a 5% March increase plus a potential smaller July action, and a single 7% March increase intended to carry the utility through the fiscal year. The board discussed timing — staff noted a six‑week lead time is needed between a board vote and billing changes — and debated whether to smooth increases now or defer until July. Several board members favored a March increase to begin rebuilding a healthier retained earnings balance in the water/sewer enterprise fund.
Selectman Matt Lane initially moved a 7% March increase; that motion failed 3–2. Selectman Bill Plasco then moved the 5% March 1 increase, seconded and approved on a 5–0 roll call. The board directed staff to re‑examine fund projections at midyear and to return with updated recommendations in July.
Public comment was brief; one resident urged a smaller increase because other municipal budget pressures are expected in the spring. Staff said the 5% March increase is estimated to generate roughly $400,000 in additional revenue for FY25; a 7% option would have generated more (roughly $600,000 in staff estimates). The town’s presentation also noted one commercial customer (Home Market Foods) represented a significant portion of receivables in the prior year and that weather and major industrial outages affect annual collections.
The board closed the public hearing and adopted the 5% increase by unanimous vote; the new rates will appear on March bills (covering February usage). The board asked staff to report back in July on actual first‑half results and recommended whether any additional rate action should be taken for FY26.
Ending: The selectmen’s motion set a near‑term rate change to stabilize the water/sewer fund while committing to a midyear review that could recommend further adjustments.