Severance proposes 6% wastewater rate increase, 1.5% for water

Severance’s proposed 2027 rates would raise wastewater charges 6% and water charges 1.5%, ahead of a Nov. 10 public hearing on the budget.

The proposed water rate has a $38.15 monthly base fee, plus $8.88 per 1,000 gallons used. Wastewater would cost $39.81 a month for the first 5,000 gallons, plus $4.42 per 1,000 gallons above that. Stormwater would cost $6.25 per lot monthly, or $75 a year; the transportation utility fee would be $15.50 per lot monthly, or $186 a year.

Completed water projects allow a smaller increase, while the wastewater increase would support financing a joint treatment plant with Windsor, a staff member said. The town plans to borrow $5 million for the $20 million project and use $15 million from reserves, the staff member said. A council member said using more of the wastewater fund would lower debt-service costs and rate increases, but a catastrophic repair poses a risk: “we've only got $2 million in the fund to pay for that.” Borrowing or the General Fund could cover such a repair, the member said.

A staff member proposed a 3% service fee on animal licenses and dog and cat tags, excluding utility payments, and said the schedule could be amended for Nov. 10. On a $15 animal license, the proposed fee would add an estimated 45 cents, the staff member said. The charge would cover payment-processing costs the town now absorbs rather than generate additional revenue, another staff member said. “I think transparency-wise, I'd like to see it disclosed and just collected,” a council member said.

The proposed Outdoor Community Pool project has an $8,075,000 budget: $200,000 for 2027 and $7,875,000 for 2028. The 2027 allocation is for design and planning, not construction, a staff member said. “I don't think we've spent as much time as we need to,” a council member said. Staff would return before spending the design money, and the project could come back for reconsideration if it proved unfeasible, the staff member said.

The current draft omits a roughly $174,000 wastewater debt-service payment due Dec. 1, 2027, staff said. It was added to the next draft using preliminary figures from Stifel and assuming bonds are issued in June, staff said. A staff member said the revised budget was expected at the Nov. 10 public hearing, with no further changes anticipated beyond possible corrections during review. Updated 2026 projections were expected to raise projected fund balances, another staff member said.