Asset Management, Budget and Finance Committee Meeting - August 21, 2026

On Friday, August 21, 2026, the Asset Management, Budget and Finance Committee convened to discuss the town's financial stewardship, asset management program, and future water and wastewater rate structures. The committee re-elected its chair, adopted a mission statement, reviewed progress on asset management and paving, and received a financial modeling presentation from Waterworth. Key goals include monthly meetings, a rate proposal by end of September, and a 2028 budget process beginning early.

Consent Calendar

• The agenda was adopted.
• Minutes from the previous meeting were approved unanimously.

Public Comments & Testimony

• No public comments were offered.

Discussion Items

• Re-election of Chair: Mayor McKee was unanimously re-elected as committee chair.
• Mission Statement: The committee adopted the mission statement: "To safeguard the town's financial and physical assets through prudent financial management, transparent reporting, and strategic life cycle planning, ensuring sustainable infrastructure and public trust for our community."
• Committee Goals and Objectives: The committee discussed the need for monthly meetings to stay on top of the budget and asset management. Members emphasized the importance of incorporating new water and sewer rates to avoid over-reliance on restricted fund withdrawals. The goals from the previous year (December 2024) were read and will be circulated for member feedback.
• Asset Management Program: Staff reported progress on preventative maintenance schedules, particularly for water assets. Challenges include recent staff turnover and the age of the wastewater plant, which is reaching end of life. The committee debated the level of detail needed—whether to focus on criticality and life safety or high-level cost forecasting. The consensus was to aim for a high-level view that informs budgeting, with the understanding that detailed asset management will be phased in, starting with water and streets.
• Paving and Streets: The public works director presented a preliminary paving priority list. Members noted discrepancies between the spreadsheet ratings and actual road conditions. The committee agreed to use a $350,000 annual paving budget as a baseline, potentially increasing to $400,000 due to rising costs. A 10-year look ahead was deemed sufficient, with a future bucket for 10-20 year needs. The possibility of using millings for other town projects (e.g., White Farm) was discussed but determined unsuitable due to drainage issues.
• Waterworth Financial Model Presentation: Representatives from Waterworth presented baseline financial models for the water and wastewater funds. The models showed current and projected revenues, expenses, debt service, and capital improvements. Without rate increases, the water fund's cash position would fall below the operating threshold (3 months of expenses) by 2031-2032, and the wastewater fund would face similar pressures. The committee discussed the impact of large capital projects (Morris Street water main, Old Landing Road, White Farm wastewater plant) and the potential for principal forgiveness loans. The next step is to incorporate consumption data and propose new rate structures by the end of September 2026.

Key Outcomes

• Chair Re-elected: Mayor McKee will continue as chair.
• Mission Statement Adopted: The committee approved the mission statement as presented.
• Goals and Objectives: The list from December 2024 will be emailed to members for edits and additions, to be finalized at the next meeting.
• Asset Management: Staff will continue to develop a phased asset management plan, prioritizing water assets and critical infrastructure. The committee will receive a 10-year renewal plan for underground infrastructure.
• Paving Budget: The committee agreed to use a $350,000 annual paving budget (with potential escalation to $400,000) and will work with public works to refine the 10-year paving schedule.
• Waterworth Rate Proposal: Waterworth will return with a detailed rate proposal (including consumption data and rate structure options) by the end of September 2026. The committee will review and make a recommendation to full council.
• Next Meeting: The next meeting will be scheduled after the Waterworth team provides an update, likely within a few weeks. The committee will aim for monthly meetings going forward, with a focus on the 2028 budget cycle.