Good afternoon everyone. Welcome to the rate review committee. This is Tuesday, February 24th, 2026. 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 inerson meeting. Please note that while an option for
remote attendance andor participation via Zoom is being provided as courtesy of the public, 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 inperson 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 929-2056099. For additional information about remote
participation, please contact Carly Anteneellis, assistant town manager at atmair.mma. US or 978-772-8220 extension 100 prior to the meeting. Okay. So, first up on the agenda, we're
going to we're going to review the January 27th meeting minutes. >> Okay. And that should have the edits that we had made. >> Yes. >> Oh, right. So, Madam Chair, yep. So, on February
10th on page one, about third from the bottom, the committee reviewed the draft meeting minutes from January 27th, there was an amendment on page two regarding a statement made by Jay Livingston to be corrected as this is the corrected one.
If you recall, it had that was on me. It was sort of uh unclear. And then if you look on page three um >> all the wrong amounts. >> Yes. All the numbers are now correct
under specifically under sewer on page three. >> Yeah. So the 4% used in 50,000 was 16,000 uh surplus which the 5% using 50 was 59,000 surplus. Um so you know one of those numbers it
had gone down. We raised the interest the rate and it went the money went down. [laughter] >> Yeah. Had had it. >> Yeah. >> Yeah. So yeah, it was a typo. So [clears throat] all right. >> A lot of models there. >> Yes. >> All right. I'm good with this. Are we
good with the January 27th? Anyone have any issues? >> No. [clears throat] >> Okay. >> So, I'll make a motion that the meeting minutes from January 27th uh be approved as submitted.
>> I'll second that. >> All those in favor? I I >> say I those meeting minutes are approved. All right. Anybody see anything on February 10th? Okay. Anybody have any comments?
>> All right. Yep. >> I'll make a motion to accept the meeting minutes uh from fe February 20 February 10th, 2026 as presented. >> Second. >> Okay. All those in favor.
>> And chair says I meeting minutes from February 10th are approved. >> Some lighting here. >> It's too dark. >> We don't know what going on here. >> Awful. like this >> like a bulb went out. Went out.
>> Okay, maybe it's just the lighting from outside or it's my eyes. Um, okay. So, next up, we're going to do the review of the draft 2027 um FY2027 water sewer storm rope presentation.
All right, go ahead, Dan. Do we want to um start thinking past years if we just kind of everyone I think has had a chance to review by now or do you want me to go page by page or we want to >> just do everyone's >> list? No, just do a quick show page one, show
page two. Okay. >> Just we don't have to take long on it. >> Yeah. All right. So, in short, basically I took last year's presentation updated for this year. Um I did narrow it down a little bit last year. there was a lot more in storm water because it was the first year of of the stormwater
enterprise fund. So there's a lot more background there. Um so page one's just the cover. Hopefully anyone might have noticed if I missed messed the date up. I tried not to >> see your print out >> agenda.
Um which is very typical. We go through the committee members who are all listed here. goals, >> meeting goals. So, I adjusted this to water, sewer, and storm water rates. Last year, a little different for the
board was also voting the storm water regulations at the time. Um, then we get into background on water and wastewater. So, this is pretty vanilla. Not a lot changed here from last time.
Um, and that's the same water. this page the same. I mean, we can tweak things, but yeah, this is this is a little different. I added a photo. I took a picture of like the Clear Well progress right now. Um, and so you can see on
this page here. That's the pumping station building in the foreground and like the Clearwell tank in the background. >> Sewer system, same as last year. this page same as last year except I adjusted
we're doing the final bullet 750k per year we were doing now we we've reduced that to 500k per year because we've caught up with the significant II uh issues in the the system um this is pretty much up to date the
the plant upgrades we're going through and we do have some out to bid right now actually the filter feed pumps and I did update these pages so based on actuals and budgets of 25 26 27 those
numbers are showing here so that is up to date this is the latest pi graph of the the um expense budget for water division and it's just showing the biggest pieces of
the pie debt and expenses are their highest fall by wages um just to kind of show people that um an understanding of it. >> What is the chair just says capital purchase says 0%.
>> So that's if we purchase directly through the operating budget a capital item. >> Yeah. So this is the operating budget in a pigraph >> right I think in sewer we have some right oops yeah sewer 3%
>> um I forget what those are without 110 grand so I think it was a vehicle >> thank you for the clarification >> two items >> that >> and then that this is the most upto-ate capital five-year capital plan. Um, and
that that since has FY27 has been voted by the capital planning committee, sewer division similar updated the um the uh the spreadsheet to show
the actuals and budgets moving forward. Similar piraphph as well. This one it further breaks out. You can see how much we spend on on sub uh sending it um sending flow to Devons through our agreement. Sewer capital similar here latest 5year
>> pickup truck. >> There it is. Yeah. Pickup truck and tertiary filters. Yep. >> So those Yeah, you're right. So then we get into after that's all the background the financials of the water and sewer budgets. Now we get into the
water and sewer rate model. So first bullet we updated it in 20 FY24 with Rafelis for that modeling year. And um and since then the town's continued to update it with help from repelis when needed.
So what we've done, we've shown this in the past. If we did not do a rate increase, here's what the cash flow would look like. And then the next slide we've shown with the recommended rate increase. Here's the cash flow.
So I kept that the same. And then we show the reserve fund balance. We do this for both water. and then pursuer. >> So I think just to I don't know necessarily where you would that you would write it onto the slides, but when you're speaking to it, just kind of
remind everyone that when they're looking at that, you know, those lines that's assuming that it's the same rate increase every year. >> Okay. Yeah. Like from here >> because that the the model, you know, maybe here the model is a fixed rate and
has to be changed, you know, uh something to kind of explain that. So when somebody's looking at that, they're not going to be like, "Oh, you know, because I mean, next year if we had a windfall for some reason, you know, we would maybe only have to do
I'm just using E numbers for an example, a 3%." >> You know, so but if you're looking at that, you're thinking, "Oh god, this way is going to have to be all the time." Um, so maybe just kind of speak to that or or update this the the model page a
little bit. >> Yeah, it could. You know what I'm saying? I'm not explaining right, but I know you get what I'm trying to say. >> Yeah. Yeah. And and you're kind of right. The water really looking at the future that's like looking at this you're like, "Wait, what? Our revenue is way below expenses." We kind of have to
explain that next year's pro will give us more certainty because the clear will be will be running. We'll be selling more water. >> So, we're kind of in this year where we're, you know, >> the future is a little more unpredictable. We're waiting until next year. I mean, I [clears throat] could put some bullets or something toward
that or just speak to it during the >> Yeah. >> presentation. Yeah. >> Reaching earnings 27 also, right? So, it's zero earnings in the future as another bullet.
>> Yeah. Okay. Okay. Noted. Okay. Yeah. Then similarly there's a water question. >> We want to I don't know if you want to put it in writing or speak to
uh the fact that we're anticipating or hoping for increased revenue due to the Clearwell project. >> Yeah, that's what I was mentioning. I could I mean I think it might actually be good to lay it out on a on a slide after this just because it's very
important and it's something we know and this is something well >> but if somebody came across this presentation six months sorry >> so you add slide kind of like important points >> yeah I think it's important right
because it it it explains the dip right now and then if all goes well with online that >> slide to that >> okay I can add that with a few bullets we'll put that right after
>> explanation and the fund balance falls in line with the the cash flow we just saw um oh this is fund balance with no rate increases, then we show fund balance with the rate increase. >> Okay?
>> So, we do the vote for both. >> Then we do the same thing for sewer. If there was no rate increase, here's where we would be with recommended rate increases. Should that be rate increase, not
increases plural? It's only for this year. increase. >> Yeah. >> I wonder if it was that way in the other. No, it was just increase. Yeah. >> Here. >> I'll change that globally. You'll make sure. Yeah.
>> Write it down. >> You can you can have this back. [laughter] >> That's all right. I got it because yeah, you know, we're just talking about sewer. We're just talking about this slide. It's sewer here. Um, so here's the recommended rate increase. I did put
bullets at the bottom of this one and of the water one of we're applying 50,000 of retained earnings and the increase is a 4% increase. >> Yeah, I saw that on on the water. That's >> on water too. Same thing. >> In a few slides you re recap
recommended, but >> yeah, >> this is good to see it right with the chart. >> Yep. Okay, similar thing. No rate increase. Here's the super fund balance with the recommended rate increase.
Here's where we land. And then we get into the proposed water and sewer rates on the following slides. So quarterly minimum proposed rates and these were calculated based on the um 3%
for water, 4% for sewer. So that's just your minimum bill if you aren't over that. And here are the steps. So we'll be up basically updating the the existing
three steps. Um each step is separated by 3,000 cubic feet. That's the footnote at the bottom. So 0 to 3,000 you'd pay 319. 3,000 to 6,000. 395 step two. And then above 6,000 you pay a rate of 469.
Well, that's in the current proposed it would go up accordingly. >> Chair Dan and the majority of residents in step one. >> Yes. Yeah. Mostly typical residents like
a,500 cubic feet per quarter. And we want to put a footnote to that that >> I was just going to say and by step one you could put you know in parentheses residential
>> you know majority of res you know I'm just saying like if a lay person or me somebody >> step two is you know is obviously your um irrigation systems and then step three is your Pepsi and
the soya and all that you know >> right? >> Yes. Yeah. >> Um, yeah, maybe I can put an maybe I'll just put a footnote at the bottom. Just step one, typic res. >> Yeah. Just kind of remind everyone. Yeah.
>> Step two. >> Yeah. >> Higher user. Step three, highest user, >> large business, commercial. Yeah. >> Well, I mean, it's not just the higher hire, but I mean I think if you also if you're kind of showing like, you know, Pepsi because I know Pepsi gets
mentioned a lot. um you know tried to kind of name a company you know for example >> okay >> and this is your residence and this is people who have irrigation systems on their residence you know a little bit more layman >> okay I can
>> Dennis that's a good thing I was you know I occasionally look at the Facebook pages um and someone a couple weeks ago saying >> oh Pepsi >> yeah I know I know >> did you see that it uses all this water and they don't pay for it.
>> I know and and that's not true because didn't Pepsi go to Littleton last year for some water. >> So, but that [clears throat] gets forgotten some of their production because of our issue. >> Yeah. Now, this conservation rate, who's who's that? >> That's the um irrigation rate. So, if
you have an irrigation meter, you're watering your lawn. >> Well, then who's step two? >> Step two would just be, you know, if a residence or a property, it's probably more like a condo, a larger property, uses um between 3,000 and 6,000 cubic feet. >> So, step one would be like a single
family home. >> Yeah. >> Step two would be >> multif family home. >> Yeah. >> Step three is your commercial >> and then the conservation rate is those who have an irrigation system. >> Yeah. >> Oh, see everything I just said I just is now backwards because I was looking at
this going and applying it to that. >> So, so yeah. So, your footnotes I think would help clarify that. >> Yeah, I I can Yeah, I can put that together. >> Yeah. Yeah. >> To help. So, I double check these
numbers. I I um they should be all right. I'll have Kimberly do a check on them, too. >> The fourth tier. >> Look at the fourth step. Was that part of this year or for next year as an assignment of the committee? >> Yeah,
>> we had discussion. >> So where's our we were gonna discuss adding a fourth step? >> Hasn't been >> because we we talked about >> we talked about it last year. We said we would bring it forward and then we
didn't talk about it again. But you know >> the model, >> right? Oh, right. Right. Yeah. >> Right. Now, the model would have to totally be updated and we were going to do that. >> You're right. I think that's where we ended it because my memory going off on that, but
>> could be right. I don't remember that part. I just remember us talking about it last year and saying that we were going to look into this. So, um, >> right. Let's check on that. [clears throat] >> Yeah, let's double check that. And if that is the case, then when would be
year five? We last time we had it done was in fiscal 24. Well, it was done in 2023 >> for fiscal 24. >> So then you could add a note for those who will remember the conversation
um that when the the model is due to be updated, >> we're looking at adding a diff another step >> or another tier or whatever it was. to your system. >> Yeah. >> Yeah. Make a notation. >> Yeah. So, you can put that kind of throw
that in your slides as like a like some like an like another, you know, in for your information type of slide. Uh >> you know, >> go back and look at my notes, but for some reason, >> you could be right. You could be right. Um make
>> So, yeah. So like you could have like towards the end of your presentation and FYI this is what we're planning for this and you know and hey this is you know what we're going to do for this and you know >> yeah because we'll really need the consultant and you know they develop
these rates for communities across the country. >> So but yeah let's you can kind of like you know coming soon. >> Yeah you could have like a coming soon slide. >> Yeah. Yeah. We'll do we'll get that in there. Okay.
Okay. >> All right. >> Are these So, is this quarterly minimum proposed rate and then this are these like do we need both or do we just need one? I'm just asking. >> We do need We need both. Okay. So, the
minimum is is if nobody uses water like a rental, they go or not rental, you know, a summer house, they go away for the winter. We still charge them a minimum rate even if they don't use any water sewer in the overhead cost. So that's where that comes in.
>> Okay. All right. Just making sure. All right. >> Yeah. So the sewer rates similar to water and I can put the similar footnote here. Step one is
>> your residential and so on. And here's your impact on average air resident. Um, this is the same table we've used in previous years. Um, you know, I thought about putting in that graphic we have now from the model which we were looking
at this year. Remember like so what's how much what's the increase to FY27 from FY26? It's $4. Remember 132 to 100 or 133. I thought about putting that graphic. I mean, maybe that's a little clear, but I I updated the the the table
for now, but that's something we could consider if instead of >> Yeah, that's fine. I mean, this explains it. >> So, [clears throat] yeah, tell us annual increase. >> Total of $20, four on the water, 16 on the sewer. And that's exactly what the
model had shown us in the And then we talked about water and so connection fees. Um, so I I put the fees all in one slide. So connection fees are here. And then other recommended fee changes down in the second big bullet.
Backflow retest 75 to 100 and a fee for 2inch fire service 2000. >> And yeah, >> just two cents. You could say two cents >> where it says calculated based on specific criteria. Yeah.
>> Semicolon last updated. Was it 2023 >> or what I'm getting at is is >> was it 2023 the last time? >> I think so. Yeah. Yeah, >> it was. >> It's a small detail, but it's been three years.
>> Yeah, >> we can add that's a good idea. So then then the summary slide for the board. Here's the recommendations of the committee. Effective July 1st, 2026,
increased water rates 3%, resource, and the backflow retest fee and 2 in fire. Do we, and I didn't put in here, do we need to put in the retained earning usage? I don't think they have to vote that. That goes to the town
meeting, right? They can't change the rate, right? Yeah, we we just go with whatever the rate. Um >> Yeah. >> Yeah. We've never The board's never gotten that deep. That goes to town rating. >> That's what I thought. So I didn't >> cover the retained earning >> the rates.
>> Yeah. Yeah. Okay. So that would be then we'll jump we turn gears and go to storm water. And so I kind of chopped this down a little bit. Here's a little background on regulatory
um some of the issues we have. Uh oh, what happened? >> Oh, blank slide. Um and then the recommend get into the recommendation. So really not to be too >> and in that too you could just kind of
talk to the fact that you know for whatever reason I I can't remember why you said you know we just started collecting billing the storm water so it'll take a little while to start getting some numbers anyway. Yeah, >> just to kind of also remind everybody
like you know >> we're not doing >> in that vein if possible wherever is that it was authorized by the air town meeting on whatever the date was because there's a lot of recent chatter that
this just fell out of the sky. >> Yeah, I've been getting a lot more calls recently on it >> and that's what I told I told you to send out a letter to everybody saying this is what going to happen. You did. There was no letter saying we didn't get to bill. So this is why everyone gets
stunned because they forget. >> Swirls go by. >> Inserts and everything. But that didn't happen, >> right? >> So, squirrels went by. >> I definitely think this a reference to the town date, right?
>> The people, >> the people voted town meeting, not the people, but >> y >> you know, and that was after numerous, you know, public information and stuff. So, >> this graphic here actually shows, you
see the green the revenue. >> Yeah. >> It's actually lowered in FY26 than FY27. it factors into the where we where we didn't bill in the first quarter or so. >> So that actually shows that. So you know we're still going to have enough revenue for that year.
>> But we'll be a little shorter than we originally were going to. >> But then FY27 essentially that it would be the same in both those years. $95 fee. This shows a 2% increase after that. We'll we'll see where we go from there in the future in the committee.
So yeah, down at the bottom I highlighted the recommendation and no change maintain annual rate $95. I think that's the end. >> Yeah, looks good. >> Good job. >> Yeah.
>> Okay, I got some good uh changes. Why that went black there? >> Yeah, I think I had a note in there or something you can use. as a reminder. >> So, nope. Looks good. Anybody have any
questions, comments, concerns? >> Okay. So, the public hearing will be on the 17th of March. >> Um, we'll just go from there. >> Okay. These two items. Thanks.
>> Okay. So now um that'll put all this to bed. We'll do the the public hearing and then everything will appear on town meeting. Um so the next time we meet it should be for uh transfer station.
>> Y >> right. >> Yeah. September. >> Yeah. Um, and you need to make sure we have what are we do? You know, sticker versus
>> not just it's not going to work. >> It's got to be a [clears throat] real, you know, this is why we're doing one way or another. >> Yeah. >> And we got to look at those contracts that >> Oh, yeah. And the contracts are Yeah. Yeah.
>> Yeah. Actually, I met with Cassella recently on that and >> so yeah, I'll connect with you, Robert, on what we're doing. Yeah. >> Okay. >> Yeah. >> Good. >> Sounds good. >> Now, if the sticker if you you know when talking about the sticker, we were
talking about like a really big one. >> Remember? >> Yeah. >> Just for I know. >> Yeah. For your research and everything. So yeah, that's what was being >> Yeah, we got and we have the available information from that memo that was done by time bond. Um I think I put together
summary of it, but yeah, I can put together a good >> summary and and >> good clear cut >> and why >> why we're one way versus the other. >> Yeah. >> Okay. >> I'll second it. >> All those in favor?
>> I chair says I. Good night everybody.