Stratford wastewater board flags sludge-hauling costs and recommends rate options to cover $2.15 million gap

The Town of Stratford Water Pollution Control Authority held a special budget workshop on May 13 to address rising wastewater costs that officials say may require a user-rate increase.

Tom Hyde, speaking to the WPCA board, summarized the proposed budget increase and its drivers: "49% of that is, or $500,000, possibly up to $700,000, addresses the sludge hauling and disposal increase that took effect in July of '22," he said, and added that administrative costs and operations make up the rest of the increase.

The immediate concern is a combination of higher sludge-hauling bills and planned capital needs. Staff said they estimate roughly $1.4 million should be kept in reserve to cover engineering overages on upcoming projects and described a broader capital need for the town’s share of improvements that could total about $13.5 million, with other federal and state funding expected to offset some of that amount.

Finance staff told the board the WPCA’s unassigned fund balance was reduced by recent auditor adjustments to about $2 million, and the commission faces a current-year deficit "a little bit over $300,000," according to staff. Combining debt-service schedules and sludge pressures, bond counsel provided an estimate of roughly $1,450,000 in additional annual debt service plus an estimated $700,000 related to sludge and utility shortfalls, producing a recommended revenue increase of about $2,150,000.

To close that gap, staff outlined preliminary rate scenarios. "We're looking somewhere between a $50 to $85 a year increase, to residential, which would be about a dollar a week," a staff presenter said, while noting exact impacts depend on how increases are split between residential and commercial accounts. Commercial customers are billed by the CCU (100 cubic feet, about 750 gallons); staff said a commercial unit rate could rise from $5.81 to $7.12 per unit under a possible option presented at the workshop.

Board members and staff also debated operational alternatives to reduce hauling volumes, including on-site dewatering. Hyde warned that dewatering would require substantial capital investment — potentially $1 million–$2 million — and that forthcoming state regulation of PFAS and other contaminants could change the economics or compliance requirements for any new equipment. "We thought we could save some significant money, but I would hate to spend a million or $2,000,000 on equipment to have them come in with regulations that said that we did that wrong also," he said.

Several commissioners stressed the need for more detailed written analysis. One asked staff to provide comparative rate information for neighboring towns so the commission can judge Stratford’s proposed increases in context; staff agreed to produce a written estimate and additional options for how to apportion increases between residential and commercial customers.

No formal vote or rate-setting action occurred at the workshop. The WPCA closed the meeting after asking staff for the requested written materials and for updated projections so the commission can consider a final rate decision in a later meeting.

The WPCA adjourned with its next step set as receiving the written analysis and refined rate options before any formal vote.