Reading Select Board Approves FY26 Water and Sewer Rates with No Increase, Reduces Sewer Rate by 1%
Amid a nearly five-hour Select Board meeting (recapped here), a key decision to offer financial relief to residents went largely unnoticed. The board voted (4-1 and 3-2) Tuesday night to approve a 0% increase in water rates and a 1% decrease in sewer rates for Fiscal Year 2026. The stormwater rate will remain unchanged at $60 per year.
The decision followed a detailed presentation by Matt Abrahams of the Abrahams Group, who outlined five rate options for both water and sewer services. The board ultimately chose a conservative approach, citing the town’s healthy retained earnings and a desire to ease the burden on ratepayers.
Water Rates: Holding Steady
The board voted 4-1 maintaining current water rates, citing a strong financial position; Karen Rose-Gillis was the lone vote. Retained earnings in the water enterprise fund stand at approximately $5.5 million—well above the town’s policy target of 30% of the annual budget.
Board members emphasized the importance of fiscal prudence while recognizing the opportunity to give residents a break. “This is a good position to be in,” said Select Board member Karen Herrick. “We have a long runway with retained earnings, and we can afford to hold the line this year.”
The FY26 water rates are as follows (effective with December 2025 billing):
- $11.15 for 0-1000 gallons
- $12.14 for 1001-2500 gallons
- $12.45 for 2501-4000 gallons
- $12.97 for 4001+ gallons
Sewer Rates: A Modest Reduction
In a 3–2 vote, the board approved a 1% reduction in sewer rates. The sewer enterprise fund currently holds $6.9 million in retained earnings—93% of the annual budget. While some members expressed concern about potential infrastructure needs, the majority agreed that the fund’s strength justified a modest rate cut.
“This is free money we’re holding onto,” said Select Board member Chris Haley. “We need to give some of it back.”
Board members Karen Rose-Gillis and Karen Herrick dissented, with Herrick citing concerns about aging infrastructure and the potential for unexpected repairs. “We have 100 miles of sewer lines, many of them old,” she said. “I’d rather be cautious.”
The FY26 sewer rates are as follows (effective with December 2025 billing):
- $10.40 for 0-1000 gallons
- $11.37 for 1001-2500 gallons
- $11.73 for 2501-4000 gallons
- $12.24 for 4001+ gallons
Stormwater Rate: No Change
The board also voted 5-0 to keep the stormwater rate at $60 per year per unit, a figure that has remained unchanged since FY19. Town staff reported that the current rate continues to support ongoing stormwater management projects and a planned update to the town’s stormwater master plan.
Looking Ahead
The board’s decision was met with support from residents during the public hearing, many of whom expressed appreciation for the financial relief. However, some urged the board to revisit the town’s policy of maintaining 30% retained earnings, suggesting that a lower target might be more appropriate. The industry standard guidelines suggest 10-25%.
The board also discussed the impact of second water meters, which allow residents to separate irrigation usage from sewer billing. As of the meeting, 122 second meters had been installed, with 161 applications submitted. The town has roughly 9,000 meters overall. The board plans to monitor the financial impact of these meters in future rate discussions and will revisit the retained earnings policy to continue evaluating infrastructure needs in the coming fiscal year.
