The meeting commenced with an examination of the upcoming fiscal year’s sewer rates. The Select Board, acting as sewer commissioners, debated the need to adjust rates to meet the operational costs and debt service requirements for the South Deerfield plant. The financing of the sewer plant has been complex, with the town securing multiple loans, including one from the USDA amounting to $8.57 million at a 2.2% interest rate for 36 years, and a second loan for $2.987 million at 1.38% for 38 years. Additionally, a town bond of approximately $680,000 was issued, initially at 5% interest, decreasing to 4% in later years. These financial obligations necessitated a review of the sewer rates, which had been set at $20.94 per thousand gallons in the previous year.

The board considered various scenarios for rate adjustments. Options included maintaining the current rates, which would eventually increase costs to $24.45, or altering the service fee to $150 while raising the minimum charge to $100, setting the rate at $23 per thousand gallons. This proposal aimed to balance the budget while covering operational costs, including urgent repairs. One issue was the failed effluent pipe leading to the river, which had been exacerbated by recent flooding and required immediate attention. The board had applied for emergency funding from the state revolving fund to address this but had yet to receive a response.

Further complicating the board’s decision-making process was the decline in sewer usage, which had decreased by about one million gallons from the previous year without a clear cause. This drop prompted a analysis of usage trends and financial projections, with charts and graphs prepared by DPC Engineering offering insights into potential adjustments. Concerns about the fairness of the current billing structure were raised, particularly regarding the impact on senior citizens and low-usage customers. The board debated whether a significant rate increase was necessary or if it would unduly burden residents, especially given current economic conditions.

Public engagement was encouraged, with several residents voicing questions about the financial aspects of the sewer system. One resident requested a detailed breakdown of the USDA loans and sought clarity on the town’s financial contributions. The board clarified that the town pays 25% of the loan payments annually, with the remaining costs covered by ratepayers. Discussions also included the definition of a sewer user, which encompasses both residential and business connections, and the challenges in equitably assessing fees for multi-unit properties and large institutional users like Deerfield Academy.

The board acknowledged the need for a sustainable financial strategy, emphasizing the importance of retaining earnings within the enterprise fund to manage future expenses without relying on retained earnings for day-to-day operations. A proposal to implement a rate freeze and provide a comprehensive financial presentation was suggested to ensure transparency and accuracy in how costs are allocated.