Ayer Rate Review Committee Eyes Lower Rate Hikes Using Retained Earnings in FY2027

AYER — January 13, 2026 — Ayer Rate Review Committee opens FY2027 water and sewer rate discussions with eye toward modest increases. Meeting Tuesday, the committee reviewed updated financial models showing a tentative 2 percent water rate increase and a possible draw of $500,000 from the water retained-earnings account — which stood at $4,516,388 at the close of FY2025 — with members also discussing a 1.5 percent alternative scenario. For sewer, the committee leaned toward dropping from last year's 2.5 percent increase to 2 percent, with a cushion draw of roughly $100,000 to $150,000 from the sewer retained-earnings balance of $4,892,590. Staff noted that approximately $850,000 in annual PFAS media replacement costs will be paid from a roughly $1.8 million class-action settlement with DuPont and 3M, keeping those items off the rate base entirely. The stormwater rate was recommended to remain unchanged at $95, with projected annual revenue of approximately $670,000 now that billing has commenced. The committee will reconvene January 27 at 4 p.m. to model specific rate scenarios and review connection fees.