Dear Customer,

The Town has recently completed the annual review of the water and sewer enterprise accounts.  The Town’s management and financial departments have been working with financial consultant, the Abrahams Group, for several years to establish stability in these accounts.  As a result of this year’s review, a water and sewer rate increase is required to balance the fiscal year 08 budget. 

The sewer rates will increase 30% for fiscal ‘08 effective July 1, 2007.  As you may know, the sewer enterprise fund has been plagued by unfunded debt from the original sewer construction phases.  The Town instituted a program to address this issue over the last several years  and we now expect future rate increase should be minimal as this debt is retired, future betterments receipts are in line with actual costs and completion of Phase VI allows spreading the costs over a larger customer base.  During these times the Sewer Department has worked hard to keep its operational costs at a minimum. 

The water rates will increase by 5.5% for fiscal ‘08 effective July 1, 2007.  The minimum charge remains the same as last year.  Projection of the water enterprise account’s operational and capital expenses over the next few years indicates only minimal increases may be needed in the future.

The recently elected DPW Board has committed to beginning the annual review process earlier in fiscal year 09 and appreciates your understanding during these difficult financial times.

Respectfully,

Daniel McIntyre, Chairman
Department of Public Works