This May the voters of Boothbay, Boothbay Harbor and Southport will be asked to approve raising the debt limit for the Boothbay Region Water District (BRWD) from $12 million to $19 million. This request is for an adjustment after 22 years without raising the amount of debt the BRWD may incur.

The BRWD was formed in 2001. At that time the Maine Legislature granted the district a $12 million debt limit to allow the district to continually update its water treatment plant, protect its finite water supply and maintain 102-miles of distribution water main. The debt limit was maintained when the BRWD expanded by acquiring the Southport Water District. The BRWD has managed to operate successfully within the same debt limit ever since.

The BRWD is a strictly regulated public utility which falls under the financial review and regulation of the Maine Public Utilities Commission (PUC). Under PUC regulations, it is very difficult for a district of the size of the BRWD to save money for renewal and large capital improvement projects through rates, so most larger projects must be financed by taking on debt.

For smaller projects, the BRWD has set up a “Paygo” system, for infrastructure upgrade and replacement, funded directly from rates with no debt incurred. These projects are for either treatment plant component replacement and upgrades, or more commonly, replacement of water service mains feeding specific streets and roads throughout the towns served by the system. These “Paygo” projects are usually under $300,000.00 to complete and are performed by the highly skilled BRWD staff.

However, one advantage of taking on debt is that the BRWD then becomes eligible for grant funding, of which the BRWD has an outstanding record of securing. Virtually all large capital projects the BRWD has undertaken in the past 25-years have had a grant component, translating into, most commonly, the Federal or State government picking as much as 50% of the cost of any large project undertaken.

The district incurs debt only for very specific purposes, which include:

1.Repair and replacement of district infrastructure in the distribution system;

2.Large upgrade projects within the District’s Adams Pond Treatment Plant;

3.Protection of the District’s water resources; and

4.To comply with new Maine or Federal regulations.

The district does not take on debt to cover operational expenses.

This request from the voters of the Boothbay Region is simply to adjust for inflation. When calculated the approved 2001 debt limit of $12 million has the same “real dollar” value as $19.8 million now in 2023. The BRWD is requesting less “real dollar” value than originally approved by the Maine legislature, but due to the district’s financial management, and excellent debt management practices, believes that updating to a $19 million debt limit will serve the district adequately well into the future.

This May please vote yes on raising the debt limit for the BRWD from $12 million to $19 million.

Nell Tharpe
Treasurer BRWD Board of Trustees
Boothbay Region Water District

Jon Ziegra
General Manager
Boothbay Region Water District