Millsboro Asset Management, Budget, and Finance Committee Meeting - October 15, 2026

The committee met at 16:55:44 UTC on Thursday, October 15, 2026. It adopted its agenda, approved prior minutes, heard an asset management status update, and received a water and sewer rate presentation from Waterworth. No public comments were made.

Consent Calendar

• The agenda was adopted by voice vote; no opposition was stated.
• The previous committee meeting minutes were approved by motion and second.
• Roll call confirmed that Mr. Mason, Mr. Burke, Mr. McKee, Ms. Sounder, and Mr. Plack were present.

Public Comments & Testimony

• No public comments were offered; none appeared online.

Discussion Items

Asset Management Update

• The committee chair reported on a recent session with public works directors and Town Manager Jamie Burke. All collected asset data has been entered into the system, and the data structure was described as the right approach based on the chair's 30 years of experience.
• Staff recommended obtaining outside consulting help to build out preventive maintenance procedures, estimated labor hours, and asset tags; this consulting cost is not yet in next year's budget.
• Rich provided iWORKS data as of October 14, 2026: 2,861 work orders had been recorded, with 8 open, 10 in progress, and 2,803 closed. The transcript gives those component numbers as summing to 2,821, not 2,861, so there is an apparent discrepancy. Staff reported a 115% increase in work orders created since the previous asset management meeting.
• The transcript states staff are capturing plus percent of man-hours in work orders; the exact figure is not specified.
• Asset expansion is focused on the town's water treatment plant, with 29 assets and 56 preventive maintenance schedule activities entered so far. The next focus is the Church Street water treatment plant and other wastewater facilities.
• Proposed outside assistance would include standard operating procedures, estimated labor hours, maintenance tasks, and unique asset identifiers such as barcodes or QR codes.

Water Fund Financial Model and Rate Scenarios

• Waterworth presented a projection of water operating expenses rising about 3% annually after the 2027 budget increase, plus capital projects including about $3 million for Old Landing Road and about $2 million for Morris Street water main replacement.
• The status quo baseline assumes no rate changes; the water fund would fall below its operating threshold and below zero by about 2031-2032. The operating threshold is about three months of operating expenses.
• The proposed water revenue scenario is a 10% revenue increase in 2028 and 2029, dropping to 7% thereafter.
• Rate structure changes would set the in-town base charge by meter size instead of a flat charge, lower the consumption threshold from 7,500 to 7,000 gallons, and adjust tier rates. Example in-town impact: a 5,000-gallon bill would rise about $2.25, or 4.3%; larger users would see larger increases.
• Outside-town water bills would increase by higher dollar amounts; examples cited were $4.50 for 5,000 gallons, $11.70 for 7,500 gallons, and $13.20 for 10,000 gallons.

Wastewater Financial Model and Rate Scenarios

• The wastewater baseline includes the White Farm Southwest project, estimated around $10 million per year in 2027 and 2028, with proposed debt funding of $14 million in 2027, $9 million in 2028, $3.5 million in 2029, and about $9 million in grant funding in 2028.
• With no rate changes, the wastewater fund would reach zero by about 2030 and fall below the operating threshold.
• The proposed wastewater scenario assumes a one-time 70% revenue increase in 2028, followed by 7% increases.
• The in-town sewer minimum charge would rise from about $104 to $173, the above-threshold per-100-gallon rate from about $1.39 to $2.32, and the threshold would drop from 7,500 to 7,000 gallons. Outside-town sewer rates would also rise 70%, with higher dollar amounts.

Debt and Rate Policy Questions

• Committee members questioned whether refinancing existing low-interest debt could reduce costs. Staff noted that the town refinanced USDA and SRF loans in 2021 and saved an estimated $1-2 million over the life of the debt, but current higher interest rates make another refinance unattractive.
• USDA loans are generally 40-year terms and SRF loans 30-year terms; the town has no fixed policy on loan length. Members asked staff to provide a full loan schedule with balances, interest rates, and years remaining, and to avoid presenting only annual debt service.
• Waterworth was asked to compare the proposed rates with similar communities among its nearly 500 municipal clients.
• Members discussed charging water-only irrigation meters at a different rate, possibly as a luxury-type rate, and billing them quarterly instead of annually to avoid bill shock.
• Members discussed whether commercial sewer customers should pay higher rates than residential customers because of stronger wastewater; a commercial classification list would be feasible to develop. The town has preliminary industrial pre-treatment authority, but staff said a full program is not ready due to staffing.
• A committee member raised concerns about fixed-income seniors; staff noted there are local assistance referrals and no income-based utility rate is currently contemplated.

Budget Process Timing

• Staff explained that department heads generally submit their spending needs before revenue is finalized, and that revenue and rate proposals are built from those submitted needs.
• The committee agreed on the goal of establishing a budget timeline and completing most of the budget work in committee before taking it to the full council, in order to avoid a last-minute budget crunch.

Key Outcomes

• No rate increase was adopted. No formal vote was taken on rate changes.
• The committee directed Waterworth and staff to refine the water and sewer scenarios, provide irrigation meter data separated by water-only and combined bills, and return with comparable rate data.
• Staff will prepare a full loan schedule showing balances, rates, and remaining terms.
• The committee plans to bring the presentation to the full council in November for public education and discussion.
• A resident notification, such as a mailer, was discussed before any rate increase; council will decide the effective date, with January 2027 discussed as the earliest practical timing.
• The committee agreed to meet again in November, likely the second Thursday (November 12), to review updated rate information and begin work on a budget timeline.