Meredith water, sewer rates increase to support aging pipes

MEREDITH — Water and sewer rates for residents are increasing to cover unexpected costs from an aging infrastructure, the selectboard heard from Chief Water Operator Phil Sausville on Monday.

The selectboard voted to adopt a water usage rate of $5.65 per 100 cubic feet, a sewer disposal rate for metered accounts of $6.35, and $222.14 for non-metered accounts.

A public hearing was held regarding the rate increases, starting with a presentation by Sausville, who told the selectboard the fixed quarterly change and the consumption rate has not changed since 2013.

He recommended increasing the water and sewer rate from 8.25% to 8.5%, which would be an average increase of $85 per year for a single-family home that uses 90,000 gallons of water. Similarly, the recommendation for the sewer rate is an increase of 9% for each of the next eight years, which would be about an $87.50 increase.

The flat rate, which has also not changed since 2013, would increase to $222.14, from $137.48.

Sausville said after the most recent water main break at the town docks on Sept. 16, the town spent roughly $20,000 on pump trucks for repairs. That total repair — around $75,000 — was not in the town budget.

“That is part of the reason we why want to increase these rates, and hopefully cover those unexpected expenses,” Sausville said.

With aging pipes, he said breaks like this could become more common, unless the department gets ahead of the game with regular maintenance.

Meredith resident Anne Sprague asked for clarification about the increases, and whether they would compound year after year, and exponentially increase over time. Selectboard members confirmed that would be the case.

“Most of us are aware that we have aging infrastructure in our underground pipes and this is probably warranted that we need to do it,” Sprague said.

Selectboard Chair Mike Pelczar said state law will require water and sewer department leaders to come back each year to make this request, rather than set up a fee schedule, as suggested by selectboard member Jim Gregoire.

“For the next eight or nine years, they’ll be back here asking for a rate change, which we just can’t encumber you all in one shot tonight,” Pelczar said.

David Thorpe, co-writer of a position paper the water and sewer department used in their report, said one of the issues to deal with soon is how debt service is paid. Currently, rate payers fund 60%, and the other 40% comes from taxpayers. He said since water rate payers also pay taxes, it actually ends up being closer to 70%-30%. Thorpe thinks rate payers should be paying closer to 80%.

He asked the board to consider the value of the central water and sewer system to the town, its economic viability, and what it does for insurance rates.

The selectboard members discussed the possibility of a future change to the ratio, but nothing was decided.

Thorpe commended surveys done by the water and sewer department, calling them “superb,” and saying the quality of work is high.

He also said the rates should have been increased since 2013, as the town is now looking at “staggering changes.” Thorpe looked at plans for both capital and infrastructure improvements, and said they look reasonable, but the increase will also be vital.

“This rate increase, I think, will be really, really important.”