Westerly council approves $85M sewer plan funding; adds ad valorem charge on non‑sewer properties

The Westerly Town Council approved the FY2026–27 water, sewer and transfer‑station budgets and related rate ordinances Wednesday after a public hearing in which residents expressed concern about the scale and fairness of financing an $85 million wastewater treatment upgrade.

Town Manager Sean Lacy told the council the sewer plan is tied to required regulatory upgrades and financing decisions made earlier in the process. "The sewer user side, the ad valorem is going to a $0.15 per thousand and there's a $400 fee per sewer user charge per year," he said during the public hearing, adding that the bond splits debt service roughly 50/50 between the general fund and the sewer enterprise fund.

The measure that establishes the sewer use charge and the new ad valorem tax on personal and real property outside the sewer district passed on a 6–1 vote after multiple residents urged the council to reconsider the distribution of costs. One public commenter said the plan would saddle non‑sewer households and fixed‑income residents and urged more grant hunting and phased approaches to avoid forcing people from their homes.

Council members who supported the measures said the town faces regulatory and infrastructure mandates and that the upgrades will improve water quality and downstream ecology. Councilors described programs to assist homeowners with septic systems, including the town's participation in a 0% Community Septic System Loan Program and other aid programs, and encouraged residents to contact staff for help.

The actions passed in separate votes: the overall budgets were approved 6–1, the water rate schedule was approved unanimously, and the sewer use and ad valorem ordinances passed 6–1. The council closed the hearing and directed staff to implement the rates. The ordinance votes record that the measures met the council's procedural requirements; the clerk recorded the tallies but the transcript does not list individual roll‑call names for the vote in the public record.

The council and staff emphasized that the project is driven by regulatory requirements and that many funding options had been considered. Lacy said the town had engaged consultants and state officials and would pursue grant and resiliency funding where available. Several councilors urged residents with financial concerns to contact town staff to discuss available assistance.

The council's approval sets the town on the near‑term path to proceed with the sewer upgrade financing and billing adjustments described in the ordinances; further phases and detailed implementation will be driven by project schedules, grant outcomes and future council decisions.