Jim Higgins, LWG CPAs & Advisors, left, confers with Milford Clerk/Treasurer Tricia Gall before the Dec. 13 meeting of Milford Town Council. LWG recently completed water and wastewater rate studies for the town, resulting in proposed rate hikes. InkFreeNews photo by David Hazledine.

By David Hazledine
InkFreeNews

MILFORD — Milford Town Council took another step toward correcting financial shortfalls in the town’s water and wastewater departments at its monthly meeting Monday, Dec. 13. The council voted to advertise proposed rate hikes based on the findings of a study by LWG CPAs and Advisors. If passed, Milford users will see water bills go up $7.56 and wastewater go up $8.10 per 4,000 gallons of usage per month, the industry standard estimate. The rate hearing will be held prior to the council’s regular meeting at 7 p.m. Monday, Feb. 10.

Jim Higgins of LWG presented two sets of numbers to the board. First, to simply meet operating expenses, the town needs to increase water $2.73 and wastewater $6.06.

Then LWG added the amount of increase required to pay debt service on prospective loans for capital improvements needed to ensure efficient operations in the future. For $500,000 in debt service on water, this amount is $4.83; for $250,000 in debt service for wastewater, $2.04.

The council is proposing both measures, which will translate to an average monthly bill of $32.41 for water and $54.60 for wastewater.

The last time utilities rates were increased was 2015 for water and 2019 for sewer. In both instances, the council chose smaller increases, which were not able to correct the department’s financial shortfalls.

The proposed capital improvements come as nearly $700 million in infrastructure loans for water projects is expected to be made available by the state, according to Higgins.

“The state is looking for average customer rates of $65 to $75 per month,” he said. Even with the proposed increases, he added, Milford would be well under those averages.

Clerk/Treasurer Tricia Gall pointed out the town was recently unable to obtain a $800,000 grant for new meters and lead and copper line replacement, largely due to the town’s low rates.

“We know this is a reasonable way to do it,” said Councilman Ken Long, contrasting the proposed rates with debt service of $1 million considered in earlier discussions. “It’s a reasonable increase we need to discuss.”