DEERFIELD — Amid increased salaries, wages and debt responsibilities, the Selectboard/Sewer Commission has approved an 11.1% increase to the town’s sewer rates.
The approved fiscal year 2024 rate is $20.94 per 1,000 gallons, which is an increase from FY23’s approved rate of $18.84 per 1,000 gallons. Selectboard member Trevor McDaniel said they came up with the number after looking at the operational costs of both the South Deerfield and Old Deerfield wastewater plants, as well as increases to salaries/wages, debt service payments and other indirect costs.
“Doing nothing other than paying our debt, running the plant as we did last year, doing no investments, we would bring the sewer rate to $20.94,” McDaniel said.
Driving the increases are a $261,000 increase to debt service payments and a $91,259 rise in the salaries and wages line item, according to the FY23 expenses approved at a 2022 Selectboard meeting. This year, the town is also investing $41,000 into its operational reserve, which McDaniel said is a fund that can be used for emergency repairs or similar needs.
The only resident to attend Wednesday’s public hearing about the sewer rates was ad hoc Senior Housing Committee Chair Lili Dwight — who was slated to appear before the Selectboard that evening anyway. Dwight asked if there is any difference in rates between South Deerfield and Old Deerfield sewer users, to which McDaniel said all sewer users pay the same rates.
In FY23, the town pulled in approximately $1.7 million in billed revenue. The town expects to have approximately $2.14 million in expenses for this fiscal year.
In a rate estimate sheet provided by the town, it expects to pay these expenses with $1.89 million in user fees and then pay off the rest with $250,000 in retained earnings. The information sheet can be accessed at bit.ly/3QoK8re.
The town also anticipates several additional FY24 expenses, but money has already been set aside for those. Planning for the Old Deerfield sewer systems upgrade is set at approximately $80,000 and sewer replacement on Eastern Avenue and Cross Street is set for $18,450, both of which are accounted for in the expense budget.
The implementation of the Old Deerfield sewer system upgrades, however, will be handled by Deerfield Academy, which McDaniel said is prepared to pay $466,483, as long as the town handles the engineering and planning.
Selectboard Chair Carolyn Shores Ness said she feels the sewer rate is in a good spot, leaving the town able to take on several projects and pay off some of its debt.
“There is work happening and I feel like we’re on top of it for the first time in years,” Shores Ness said before the board unanimously approved the sewer rate.
Chris Larabee can be reached at clarabee@recorder.com or 413-930-4081.