Happy new year everyone. Welcome to 2026. Today is Tuesday, January 13, 2026. Welcome to the rate review committee meeting. This meeting of the air rate review committee will be held in person at the location provided on this notice. Members of the public are welcome to attend this in-person
meeting. Please note that while an option for remote attendance and/or participation via Zoom is being provided as courtesy to the table to the public I'm sorry I said table because the lighting on the table is terrible. So that's what I was thinking about. Um the
meeting hearing will not be suspended or terminated if technological problems interrupt the virtual broadcast unless otherwise required by law. Members of the public with particular interest in a specific item on this agenda should make plans for in-person versus virtual attendance accordingly. This meeting
will be live on Zoom. The public may access the proceedings by joining Zoom meeting ID number 978-772-8220 or by calling 9292056099. For additional information about remote participation, please contact Carly Anteneellis, assistant town manager at
atmair.mma. us or 9787728220 extension 100 prior to the meeting. Seriously, the lighting on this table is terrible. >> Oh, we can What about this light here? >> Thank you. >> Does that matter?
>> No. Like, thank you. Oh my god. a little light on the table. All right. Um Okay. So, we have the meeting minutes from our last meeting of October 14th, 2025. I
didn't see anything of concern. Anybody else? >> No. >> I'll make a motion to approve the minutes. >> Second. >> All those in favor? >> I chair says I. The meeting minutes are approved. All right.
Now we're going to start the initial review and discussion of the proposed FY2027 water, sewer, and storm water rates. Who wants to take over? >> May I just a quick question? What are
our current water and sewer rates benchmark? >> So they're down here in the blue it block. It's hard to read. Tier one. Do you want water or sewer? >> Uh, both. Well, just it's basic. >> Well, why don't we start at the
beginning and uh >> as far as what we've got and then that should answer all our questions, too. >> Um, and what we're >> Okay. >> So, we updated uh the water model. We put in the fiscal 25 operating actual
expense expenditures as we closed out fiscal 25. So everything has been updated um on the operate O andM budget. Sorry I'm reading the tabs, debt service, CIP and financing. We also put
in the uh fiscal 25 consumption. So everything I believe is up to date for the model for a good starting point for setting the next tax rate. Um our last last year we did a 2% and a 2 and a half%. So
that's kind of what's plugged in for the future because it just will repeat the most recent tax rate. So for 2026, um >> so last year through the chair Barbara, it was 2% on the water.
>> Yep. And two and a half% on the sewer >> sewer for FY 2016. >> And feel free to correct me if I'm reading something wrong. >> Yeah. And I'll say through the chair, we also did the 500,000 from retained earnings. Yes. So, in the
revenue tab on this, it does include a $500,000 use of retained earnings for fiscal 26. And then if it's not all needed, it'll drop back to retained earnings at the end of the fiscal year. >> Okay. And how much do we have in water
right now? We're talking about water right now, right? >> For retained earnings. Mhm. >> So at the close of fiscal 25 we have $4,516,388 in the water retained earnings and that is down from 5,73,094 and that's because of budgeting the
500,000 and we did go to special town meeting for the end of fiscal 25 to use some retained earnings and we used about 65,000. So that's where that it's a cumulative of those two things decreasing.
>> I am glad we did it. Um Kimberly's predictions were correct about consumption and for fiscal 25. So right on. So that puts us where we are today. The the chart kind of just gives a reflection based on the current
information that's been put in there. uh we haven't done the budget yet to decide or maybe part of this process will be to decide if we're going to use any more retained earnings or budget retained earnings for fiscal 2027. Um and that's where we are at. What kind
of projects do we have that we would need the retained earnings for? >> So it's kind of a fiscal year 27. The capital projects are pretty light. Um, sorry I didn't come prepared with that.
Um, >> no, but two of the projects must be prepared. >> I'm sorry. >> Would you mind looking on the CIP and financing tab of the model? >> Okay. >> So, if you look here and you scroll over to the left if you can. I know it's hard
with the the other direction. >> Left the other left. for fiscal 26 25 we have some projects uh they had quite a few projects water's on top and sewers on the bottom or reverse reverse reverse >> reverse so water's on the bottom >> down here
>> um and a little more >> yeah if you want to see the descriptions you go go to the left a little more and you can see all the different projects right so >> water main replacements is 550,000 And >> this is for for the FY27.
>> FYI27. We moved a few things to FI20 FY28. And those last two items we're still getting quotes on. Um, so those numbers might change. The first one is security
improvements, which is for SCADA and camera work. And the second is a hydronomatic tank with blower. it's original to the treatment plant and looks like um it could go at any time and if um it does we are um unable to
make water after the first backwash. And just to make a note the uh they usually almost every year have a media replacement. You see the year before there's the 500,000 and the 350. The recommendation is to use litigation
funds for the fiscal 27 media replacements um to help offset any pressure on the rateayers. So that's why you're not seeing them in fiscal 27. >> What do you mean litigation funds? >> So the the town um is involved in
multiple uh class action PAS lawsuits and we have received settlement money from the DuPont and and 3M. >> Oh yeah, I remember that. >> It's about 8 million >> 1.8 million. And so when this was
presented last week to capital um and there was no though capital didn't take any official votes yet, the FY27 requests um seemed to be reasonable. The recommendation to capital was on that 500,000
and the 350 thou for the media in rather than pay for it we would use settlement funds towards that to offset you know on the rates and the thing with that settlement money is it has to be used
specifically for PAS activities. So >> the media um the replacement of the media seemed to make sense. >> So I just wanted to point that out why why they're so light project wise is because those two items were >> are going to be paid in a different way.
Okay, good. Looks like we don't have anything. >> The big one is FY28. >> Yeah. >> And that's a you know a real rough number now 3.5 million for a new well pumping station and transmission main. is we're we're seeking a new well source
at pond for additional supply. Um and that project's ongoing, but that would be the construction of it. So that's when you see the yellow hatch on the on the water cash flow. That's the debt proposed debt service increases
a bunch in FY28. That's because of that big project there. Um, we are seeking an SRF fund that we did submit for that, which is a low interest loan with principal forgiveness, but we still have to borrow for that project. >> Yep. >> And we don't know if we're going to get
it. >> Yeah. Keep me posted on that. That would be great. >> So, may may we may I just summarize? So the big capital items for water for this fiscal year >> 2700,000. >> So there's there's the 550,000
uh for the water main uh replacements, the annual water main replacements. There's a 125,000 for the water security improvements. And as Kimberly mentioned, DPW is currently that's a placeholder. They're currently obtaining definitive
numbers. And then 270,000 for the hydronneumatic >> tank and blower. And as she mentioned, that's also a a placeholder they're finalizing quotes on. >> Good. Thanks. >> So, right now, I know that the model is
is just automatically built in, but you're looking at what the 2% increase. Well, you can look at the the dashboard. You want to flip back to the dashboard? >> Back to the dashboard.
Okay. Here. >> So, yep. So, at fiscal year 27, um, it is slightly below the two. It is a 2%. Um, it is slightly below the the chart, but it's doable.
>> Uhhuh. If if we stay with the 2% based on what we're currently seeing in the model, I recommend, you know, budgeting use of retained earnings. >> Yeah. >> The FY26 that first grade off for revenue, it's a little higher because we
used 500,000 retained earnings. Correct. Then everything goes back to not using retained earning, just the rates. >> Yes. >> That's where we're at in FY27 forward. How much would you recommend abusing for retained earnings? >> So, I kind of think we maybe need a little more information on how the
consumption because the commercial consumption changes was kind of what made us use the 500,000 last year. Do you guys have any updates on the web? >> Do you think for fiscal 27 we'll be back up to our normal?
>> Oh, yeah. So, the the clear well project, >> yes, >> that will be this spring substantially complete. Correct. >> So by then theoretically it'll be able to produce water like we used to before be best treatment which we be able to accommodate.
>> So if my calendar my mental calendar that's like the second half of fiscal 27 >> by this spring. >> This spring. Oh >> it's the end of fiscal 26. >> 26. Okay. So fiscal 27 we should be okay.
>> Okay. because the consumption was significantly down. So now the projection is going to have continue that until we >> tell it not to. >> Okay. >> So for initial discussion, how much are we thinking to use out of retained earnings? This is just for discussion.
>> Say at least $250,000 and we could plug it into the revenue tab if you want to see what that looks like. >> Do you want me to do that? >> Sure. >> No, not at all. Just through the chair. um and refresh my memory. So, one of the
issues with the water enterprise recent issues is there's been a decrease in water um revenue consumption because of the PAS issue which we're correcting with the Clarewell >> and it's anticipated once the Clarewell
goes back online um the hope is that that will increase. So, it won't let me add that in at this time, but yes, that is >> that is correct. >> The copies um >> I just wanted to >> Yep.
>> We'll let you do this. >> It's going to make you >> Yeah, >> that's okay. So, I can you know, I think if you did at least 250,000, it would put you just there. >> So, if we did maybe 500,000 like we did
last year, >> then you'd probably be safe. Yeah. just looking at the dollar charts versus the chart. >> Yeah. >> And that would help the consumer who's getting the bill >> would help the consumer and ensure um that if there's any issues with getting
the consumption activity back up, we'd still be okay for fiscal 27. And if we don't need all of it, it will just fall back down to retained earnings. >> So, we can get I can get what that looks like. I just can't do it on the fly right now.
So this would be 2% then. >> This currently is showing a 2% increase for fiscal 27 in that model. >> So what if we did 500,000 of retained earnings and then like a one and a half% increase instead of a two.
>> So yeah, we'd have to look at that. Yeah. >> Plus one and a half%. Um yeah, so >> these can be the scenarios, some of the scenarios. Yeah, >> that's another we can run that scenario.
We're seeing the 2% but without retained earnings. So I'll do 500k 2% 500k 1 and a half. And um next week we'll just next time we'll just make sure we have an editable spreadsheet. We can look at some if anybody else has anything else that
comes up, you can look at it right on the screen. >> Okay. So now the um the court money what what are we calling that the settlement >> settlement money. So where is that coming into play right now? >> So back on capital
>> on the capital end right if you go back to >> CI so we go back here Kurt. So if FY27 in FY26 there was a $500,000 for the Grove Pond media
>> and there was 350,000 for spec pond media for the PAS media or water media. >> What what has been recommended to capital is for this year as you can see FY27 those that 850,000
is going to come out of the settlement funds rather than from the enterprise fund. Okay. So, >> so basically that means it won't be on the rate payer. >> Okay. >> So, in other words, those capital things
we were looking for in this year, >> the 550, 125, 270 we're going to pay out of the settlement. >> Nope. Nope. >> Normally, they were there would have been two more capital item items >> that are not on here because we're going to pay for them out of the settlement.
>> Oh, like a week. >> Yeah. every year we need to replace the media so it's going to be perpetual cost. So that's the thought here is let's absorb that. >> Okay. So that that was the key. So we've already used the settlement. >> Oh, we will. Yeah, >> we will. >> In the grove pond the 500 we did that
was for two changes. >> Both of them were for two vessel change outs. >> Yeah. So that's a little higher number than >> but normally it' be >> Yeah. >> 175 and 250. >> Yeah. >> Yeah. And in FY28 we're building a new well.
potentially. Yes. As we go forward with per >> Oh, the clear well storage tank. >> That's just That's a tank. Yeah. >> Then you had the money to do the exploration for >> Yeah. We've been going through the sort of phases. We've done the >> That's why I'm thinking about it.
>> Yes. Yeah. It is part of Well, yeah. So, we've had other other Yeah. articles on it already, >> you know, for the the sexy. where you're going around with the stick. It feels like we doesn't it feel like you talk about it so many times and you're like,
"Oh my god, how is this done?" >> Okay. All right. So, yeah. So, yeah. So, I mean, one of the things obviously, you know, we know we want to make sure that we're not, you know, we want to make the fees uh reasonable >> but prepping us for the future at the
same time. So, um >> so, >> okay. So with those scenarios then we would take you're going to look at say we're going to take 500,000 for retain. So that would drop our retain balance from 4.5 million to 4 million
>> potentially >> potentially if we use it. Yeah. >> Okay. So then I'm looking at on these uh spreadsheet here fund balance part and I'm seeing as we go into 28 29 that it drops off. Is is this because we're
accounting for the 3.5 million capital in 28 or is that just the fact we're >> if if I may >> it's because the line the rate line is below our expenses. So we would y
>> so we would be >> so the model automatically factors in using retained earnings. So on those two charts, the water cash flow part where we're showing that we're not covering our expenses, the model says then your waterfront balance is going to go down.
>> Okay. >> It also um assumes consumption um is the way this model is working it assumes a small decline in consumption going forward too which feeds into that. >> Yeah. And remember with working with
reptelis, the first five years are a little clearer. Once you start heading past that, it's >> pretty murky, but you, you know, you get your trend line so you can have at least an idea. >> So that's it for water. >> And I'll also through the chair, if I may, >> I'll also just point out that dotted
line there is what's recommended to have as a healthy balance, >> right? >> For the model. Yeah. >> Yeah. >> Yes. Sure the chair before we move over to sew and I know this is the initial meeting
do we need to look at any of our um as the rate recommend as the rate review committee makes you know the recommendations to the select board on water do we need to revisit or review I'm trying to remember when we last did like our different connection fees and so forth um
>> yes we would like to review some of those >> okay yeah >> yeah we we'll take a look at those Kim and I were talking earlier about >> to the chair. Do you think maybe for the maybe the next meeting at least an initial look? >> So for everybody if these are all the different connection fees I can't
remember. I know it's in my notes when we last reviewed them. >> I'd have to I think it was 23 but >> okay. >> It's been since I've been here that we did the uh >> All right. It was later than that.
>> Yeah. Just to do the review on that. Yeah. All right. Any further discussion on the water? All right. I think we've got a this start of a game plan for the next meeting. All right. Um sewer.
>> So, kind of the same thing. We we updated the on andm the CIP and financing for projects that are in their five-year plan has been put in there and it's showing a 2 and a half% increase because that's what we approved last for
last year for this year last time. Um so that's what that model is showing. >> Then sewer capsule front up top. Yep.
FY27, >> right? So, >> no, we kept it a little light again. Um, the $500,000 is for inflow and infiltration repairs, which is a um something we have
to do each year. The $90,000 is for to replace a a pickup truck. The $75,000 is for tertiary filter tank rehabilitation. >> The $20,000 is for the tertiary filters
themselves. Um that's every other year $20,000. And the we would like to the $75,000 at the bottom is for design of a garage at Wastewater. They do not have a garage for their equipment and vehicles.
Now, I noticed in FY28 you have projected um wastewater treatment plant upgrades of 3,800. >> Correct. We >> But we just did the 4 million. So in FY25. >> Yep. >> So
>> So it was a phased approach of five steps, five phases. And we're we're starting the $4 million is phase four. The 3.8 8 is phase five. We'll see how far along we get with phase 4 because that's moving along a little slowly. So
that might be pushed off another year. >> Okay. So that could turn into FY29. >> Correct. >> Okay. All right. Um I know we did a 2 and a half% uh last time. Did we didn't use any retained earnings last time?
>> We did not. >> What do we have in retained earnings >> for sewer? We have 4,892,593 >> and that is up about 600,000 from the prior year. So we're still trending
upwards in sewer. >> Okay. >> And when I was looking at the consumption numbers provided, they looked very similar to prior years. So I don't think you're going to see like that. it just seemed like a normal um if we look back at the model uh
front page dashboard you'll see it it doesn't trend down quickly like the water appears to. >> Okay. Um so are you leaning towards another 2 and a half%. Again, this is initial discussion. So, and are you
thinking about using any retained earnings >> by May through the chair? >> Um, I think that looking at the way the sewer cash flow looks, where the rate lands on the expenses, um, it looks pretty good. So, 2.5 seems reasonable
without using any retained earnings. And if we were to use retained earnings, >> so I mean potentially if we wanted to um air on the side of caution, we could budget retained earnings and then if we don't need it, it just falls back to retained earnings. Okay.
>> Could we do some of retained earnings and then like maybe just do a 2% increase? >> We can definitely look at that scenario. >> I'll write that down for next time. the 2%. >> How much in retained earnings?
>> I mean, I would start with 150,000. >> Just thinking 100 >> to have a little bit of a cushion. Um, again, knowing that if we don't need it, it'll fall back to retain earnings. >> Right. and I can look at how that is and if it
seems like if Kimberly and Dan feel we should have a different scenario before the next meeting when we look at it we can bring another scenario >> as well >> because I know we're starting to go through the budget process and and we know that there's potential problems
there out of our control uh you know healthcare and everything so >> yes >> we can maybe might not be able to fix it there but We can fix it here if you guys get my drift. As far as for the >> resot.
>> Yeah. So, you know, just do we'll just do the best we can. >> And as far as any capital, we don't have do we have any real capital projects? >> There was the Oh,
>> for So, there's the inflow. >> No, there's the garage. >> The Oh, yeah. coming. >> The treatment plan upgrades are the big ones. >> Yeah.
>> So, yeah, the fiscal 27 it seems like a pretty standard. >> Yeah, doesn't look too bad. >> And then 28, we don't have any big hit like we did in with the uh 3.5 in water, >> but for sewer 28, there's nothing if I
>> Well, 28 could get pushed to 29. Right. >> I mean, I hate to have a project be slow. Just in this case, let it be a little bit slow. >> So, okay. All right. So,
I'm sorry. >> I I just wanted to because I'm I'm switching back and forth between rate review and capital hats here. Um >> Well, you just when you're here, just be a rate review. When you're there, you can be a capital hat. Okay.
>> So, on the >> when you're a fincom, you can be that hat. I'm just, you know, just >> be a woman be just keep wearing different hats. that >> any case so on the the capital
expenditures pursuer >> um Barbara if we don't use anything from retained earnings to pay those then in the chart here on the cash flow that is the
debt service >> is the yellow >> the debt service is covering these capital expenditures. >> It's just there. Yeah. >> Okay. >> But it's being account it's not it's being accounted for. >> Yep. >> Okay. >> And that but that's with a two and a
half% rate increase on this picture. >> Okay. >> We're going to look at a lower percentage and using some retained earnings for next time. >> Okay. >> If that >> Yeah. Just I'm going back to Jim and I's discussion of using retained earnings or
debt service to cover capital. So, I just wanted to make sure I'm clear on that. Thank you for quite double checking that for me. >> All right. So, anything else on sewer? >> And to the chair would look at these connection fees as well.
>> Yep. >> Yeah. >> All right. So, right now we we're discussing um 1.5 on water with using I think 500,000 on the retained earnings for water. For sewer, we're going to
look at what we can use for retained earnings and instead of doing a two and a half, doing a two. >> Okay. And then uh and then also look at the connection fees and whatnot. So, all right, that sounds good as far as our initial discussion.
And then I know that there was a um for storm water >> which I gota I have to laugh that we were going to think about storm water. So >> no. >> Yeah. So just Yeah. So it looks like
it's good. You just stay at the >> Yeah. >> And the conversation. >> I saw that I'm thinking oh no way. >> Yeah. Um I mean so I did update the mo the storm water model which time bond created for us we with the work group
and it it appears there's no reasons to change the rate. I would keep it at 95 and and that's the short answer. Um but you can see on here we are missing some revenue on FY26. We were late to billing because that's been frustrating but we are billing storm water now. Um and you
can see that's kind of I'm pointing at the green dot. That's the revenue the the yellow dot with the green line. That's the revenue um >> right >> line. >> So FY27 if we have our full year revenue we're right around it's like 67 $70,000
in a year. Um and so we're well above um above the current >> that's why I was kind of laughing. I mean we just started building and it's like well let's look at this see if $95 is appropriate. like it is >> um a couple I guess just that's um
capital notes in FY27. We're not going to do um a capital item for culvert improvements. Last year we did a big one and we're still working on that graten school road culvert. Matt and I actually have a meeting with the consultant. They're working toward final design on
that one. Um and then we have to go into permitting, etc. Um so color improvements 130,000. we're not going to do next year, but we'll keep doing our usual storm drain upgrades of the 230,000. It's all shown in the model here. >> Um, so, you know, the next five years
look pretty clear. Um, the big jump in FY30 is if we do another big culvert then. So, that's kind of the debt. You're going to see on the debt service yellow. >> So, we'll have to as we get closer to that figure out what makes the most sense. But long story short, I don't see
any reason to change it. and make everyone mad, too. >> Yeah. All the above. So, yeah. >> So, okay, good. All right, then. Well, if there's no further discussion on that stuff, let's schedule our next
meeting. You guys want to meet again in two weeks? like on the 27th 4 o'clock. >> Yeah, that's good. >> Yeah. >> Okay. >> Yeah. So, January 27th at 4 p.m.
>> All right. Sounds good. Anything else? All right, I'll entertain a motion. If nobody's got any questions, motion to second.
>> All those in favor? The >> chair says I. Good night, everybody. >> Good night. Thank you.