Manchester Water Works adopts FY2026 budget and 3% water rate increase

The Manchester Water Works Board of Water Commissioners on an up-or-down vote approved a fiscal year 2026 budget of $30,806,921 and a 3% increase to water rates, saying the measures are intended to stabilize the utility's cash position after two years of low consumption.

Board Chair (acting) introduced the budget proposal and said the board cut about $1.1 million from earlier capital and operating requests to reduce a projected cash shortfall. The board approved the budget and the tariff increase in separate motions; commissioners voted “aye” on both motions.

Board officials said the utility expects to end FY2026 down roughly $1 million in cash compared with prior expectations, a shortfall traced to unusually rainy weather during earlier summers that depressed water consumption and revenue. The budget before the board reduced planned capital relay work, trimmed contingency reserves and deferred some nonessential projects. The board also planned to use a portion of reserve funds if necessary.

Director Crowsdale explained the finance approach: because the waterworks is an enterprise fund whose cash is commingled with the city’s general fund, the utility can continue operations even if its book cash is negative; the city charges interest at an overnight rate on such intra-governmental borrowing. Commissioners were told operating budgets contain limited discretionary spending and that much of O&M is fixed (chemicals, purchased water, leak repairs and paving). Crowsdale said personnel changes and upcoming retirements reduce salary obligations and helped close part of the gap.

Board members said they will monitor consumption and finance metrics month to month and reassess if the summer consumption differs from expectations. The board estimated the 3% increase will raise the average customer’s annual water bill by about $10 and clarified the increase applies only to the water portion of customers’ bills.

The motions carried without recorded roll-call tallies in the transcript; commissioners present voiced assent during the vote.

The board’s action sets the budget and rate schedule for the fiscal year beginning July 1, 2025, subject to internal administrative steps required to implement the tariff change.