Water commissioners approve rate increase

LACONIA — Water rates for households across the city will go up, after the water commission approved increased rates during a meeting at City Hall on Tuesday evening.

The change will go into effect for bills on or after Jan. 1, 2026, and will reflect water usage starting Nov. 1, 2025. 

Nobody attended a public hearing held ahead of the vote to express their opinions regarding an increase in water rates. 

Ward 2 Councilor Robert Soucy was the only commissioner to vote against raising rates. 

Laconia Water Department commissioners approved a raise in the base rate from $25 to $28.75 per unit per quarter, and an increase in the consumption rate from $2.55 to $2.81 per hundred cubic feet.

Water department leaders say the increase is necessary to keep up with operational and maintenance costs, which are steadily rising. They also foresee significant infrastructure upgrades in the near future.

The estimated fiscal impact to the water department is a $350,000 increase in revenue.

“The purpose of the rate increase is to keep the financial position of the Water Department satisfactory, to continue to improve the service and performance of the department and to keep pace with the increase in inflation,” Chair Brian Wolfe said on Tuesday night. 

All other rates remain unchanged.

“It’s $41 a year and change for a single-family house,” of $0.11 per day, Water Department Superintendent Benjamin Crawford told city councilors during their meeting Monday night. 

“A little less than $1 a week,” Wolfe said. 

Wolfe, at the council meeting on Monday night, confirmed rate increases are decided by the water commission, not the council.

“There’s $2-point-something-million in cash in the bank at the Water Department, and I can’t see asking the rate payers of the City of Laconia to add for that additional money, we have that money in the bank,” Soucy said Monday night. 

“There was no plan to raise the rates this year, in this budget year,” he said. “Now that’s all changing, and I’m disturbed by it. I’m not sure the rest of the council is, but we really have no say, I just wanted to bring it up.”

Mayor Andrew Hosmer said everyone is sensitive to rate increases, but he’s not sure the council is the appropriate venue to debate rising water department costs.

“We have a police commission, but the police commission has to come to us for whatever funds we expropriate or expend. We just authorized $40,000 for the police department — the Laconia Police Commission didn’t do that, we did,” Ward 1 Councilor Bruce Cheney said Monday. “I happen to know the chairman, I know he’s an honorable and well-intentioned man, but I think when it comes to these things, the council should be making the decision about rate increases.”

Cheney said if a significant incident occurred and the Water Department needed funds, the council could raise and appropriate them, likening it to a hypothetical situation where the fire department was in need of a firetruck in short order.

“I would like it referred to the [City Council Subcommittee on Government Operations & Ordinances] for review and study about whether we should change that portion — that is, the approval of rate increases portion — to reflect the council’s views,” Cheney said. “The water commission has every right to come in here, as the police commission does, and make their case for funds. But I think the ultimate decision should be ours.”

City Manager Kirk Beattie said the water commission authority was created by city ordinance, so the current council could consider an ordinance change. 

“It was implemented by ordinance by a council in the past,” Beattie said.

The commission was established in 1955.

City Finance Director Glenn Smith said he hasn’t thoroughly researched the appropriate level of reserves for a water department.

“In none of the audits that have been done, for the city or the water department, has the auditor ever pointed to the number and said ‘that’s way too high,’” Smith said. “There’s nothing to indicate from the auditors that the reserves are at an unacceptable level.”

Councilors voted unanimously Monday to send the question to committee.