City Council

Minutes were approved by the Government Operations & Ordinances Subcommittee on 11/18/2025. CITY OF LACONIA - CITY COUNCIL SUBCOMMITTEE MEETING Government Operations & Ordinances 2:30 P.M. 10/8/2025 - Minutes 1. CALL TO ORDER Meeting was called to order by Councilor Haynes at 2:32 PM. 2. SALUTE TO THE FLAG Councilor Felch led the salute to the flag. 3. RECORDING SECRETARY Hilary Young, Assistant City Clerk 4. ROLL CALL Chairman Haynes, Councilor Felch, and Councilor Cheney entered the meeting at 2:42 PM. 5. STAFF IN ATTENDANCE City Manager Kirk Beattie, Water Department Superintendent Ben Crawford, and Public Works Director Wes Anderson 6. APPROVAL OF MINUTES Councilor Felch made a motion to approve the August 13, 2025, and August 20, 2025, minutes as presented. Seconded by Chairman Haynes. Discussion: None. The motion passed with all in favor. 2-0 6.A. August 13, 2025 - Government Operations & Ordinances Minutes 6.B. August 20, 2025 - Government Operations & Ordinances Minutes 7. GOVERNMENT OPERATIONS & ORDINANCES (Haynes, Felch, Cheney) 7.A. Discussion - Water Department At the August 11, 2025 City Council meeting there was discussion regarding the water rate increases proposed by the Water Commission. The Commission had voted to increase the water rates by changing the base rate from $25/quarter to $28.75/quarter, a 15% increase. The rate change for consumption was proposed to change from $2.55 to $2.81 per hundred cubic ft, a 10% increase. These increases would go into effect for any bills generated on or after 1/1/2026 and would reflect any water used on or after November 1, 2025. The increases would result in an estimated increase in revenue to the Water Department of $350,000. Councilor Cheney requested that this matter be referred to the Government Operations & Ordinances Subcommittee for consideration of the Ordinance language to be amended. Attached are copies of two chapters of the Code relating to the Water Commission and the Water Department. Discussion: Councilor Cheney questioned whether the city should have the Water Department be reflect any water used on or after November 1, 2025. The increases would result in an estimated increase in revenue to the Water Department of $350,000. Councilor Cheney requested that this matter be referred to the Government Operations & Ordinances Subcommittee for consideration of the Ordinance language to be amended. Attached are copies of two chapters of the Code relating to the Water Commission and the Water Department. Discussion: Councilor Cheney questioned whether the city should have the Water Department be part of the city or to remain the way that it currently is. Councilor Felch believes this all came from the rate increases. Chairman Haynes mentioned that this started back during budget time and that there was extreme concern from him that it was not the right time for rate increases. He has had residents reach out to him regarding the increases. Councilor Cheney is concerned that they were looking at an increase while they have a substantial reserve. He believes that the water department should come to the council to bond repairs. He also agrees that raising rates right now is not a good time. He mentioned that he heard from residents also. Chairman Haynes with the current rate structure, it has produced this surplus. He questions then how much this increase is going to produce. Councilor Felch does not have a problem with the increase. His problem is that their increase is not going to fit under our tax cap. He recommends step increases in the rates over a few years, so it will not hit the residents all at once. He does not have an issue with the reserve, the City has a reserve, every business has a reserve. The department has a lot of projects coming up, and planning is not a bad idea instead of having to bond everything and paying interest. He would like the Water Department to let the council know if there are any major projects or rate increases so they are aware ahead of time. Councilor Cheney believes they should use the reserve to offset the rate increases and they should come to the council for bonds for emergencies. He doesn’t mind if they stay as their own department or become part of the city. He believes the Superintendent does a great job. He would like to receive quarterly reports. Chairman Haynes was positive that they are already thinking about the next rate increase. Superintendent Crawford thanked the subcommittee for letting him and the water commission attend this meeting and thanked you for mentioning that the department is functioning well and that the concern is on the rate increase and the funds on hand. Mr. Crawford stated that in total, the two million is in checking and savings accounts. These funds can be accessed for emergencies and its money we do not need to vote on to use. They have CMA savings which only consists of money that comes from fees taken in by new meters or upgraded accounts. These funds can only be used for system-wide repairs, cannot use funds anywhere else. The reserve amount is six months’ worth of operating expenses; this was recommended by their auditors 5-6 years ago. They are not increasing their rates to increase their reserve. From this year’s budget, they transferred $368,000 to their O&M Budget. With this rate increase they are projecting $350,000 in revenue which will offset the transfer. Mr. Crawford did say that he has done a lot of research on the rate increase, looking at past increases and expenses. They are always looking at the future, whether there is an increase or decrease in rates. At one point they thought about bringing in a third party review their rates to see where they stood, it was not approved. He would be more than happy to hire someone to come in and look at it. According to a study, Laconia is the 4 th lowest rate in New Hampshire. With this increase they will be the 5 th lowest rate in the state. Councilor Soucy asked if the city changed auditors for this coming year. Mr. Crawford stated that they did change, Matt Hunt is the new auditor. He spoke with him recently, and he does not have the expertise in this and provided references and financial policies that Ben has been looking through. Many of the policies range from date base and percentage. He has reached out to NH Water Works; Laconia is in the middle of what they keep on hand. He has done their due diligence.  Councilor Soucy asked if the city changed auditors for this coming year. Mr. Crawford stated that they did change, Matt Hunt is the new auditor. He spoke with him recently, and he does not have the expertise in this and provided references and financial policies that Ben has been looking through. Many of the policies range from date base and percentage. He has reached out to NH Water Works; Laconia is in the middle of what they keep on hand. He has done their due diligence. Councilor Soucy does not think it’s a good idea to have two million in reserve. He asked what other departments are enterprise funds? Director Anderson stated the Sewer Department is an enterprise fund. The expenses are paid out of the general fund, and the sewer department reimburses the general fund. Councilor Soucy asked what the school keeps on hand. City Manager stated that they do have enterprise funds but does not know what they have in them. His biggest concern is that two million is sitting in the bank at a very low interest rate and he’d prefer to see that money work for them. Mr. Crawford mentioned that the public have been up in arms about these increases. He stated that they had public hearings and only one person showed up. Councilor Haynes believes that the issue is that these meetings were in the middle of the summer. Mr. Crawford does not believe this is an issue. He has not heard any push back other than one written note on a water bill. Councilor Haynes stated that he has heard from people that he did not know even lived in his ward. Mr. Crawford asked if any councilor receives complaints against the water department to forward them to him directly. He believes there is a disconnect between the Water Department and the City Council. Councilor Felch stated that he believes that the rate increase is justified due to salary increases, cost of supplies, gas/vehicles. This is going to maintain that reserve. Councilor Cheney does agree there is a disconnect. He would really like Mr. Crawford to come to a council meeting quarterly with updates. Mr. Crawford agreed that he would love to come and give updates. Mr. Crawford stated that they have seen an increase in consumers using low flow fixtures, conserving water. There is an increase in units, not necessarily using more water, water usage is maintaining, and expenses are increasing. City Manager Beattie stated that DPW is in the same situation with the increase in the cost of construction. Councilor Cheney would like Mr. Crawford to reach out to the auditor again to get more guidance and for him to come quarterly. Councilor Felch would like to see a comparison with other cities our size to see what their Brian Wolf stated that the water department has not taken a bank loan since 2020. The rates are steady with inflation. He stated that they are following the guidance they received from the auditors, and if the current auditors say to have less in reserve, they will respect that. 8. CITIZENS REQUESTS TO COMMENT ON CURRENT AGENDA ITEMS 9. Any other business that may come before the Council 10. ADJOURNMENT Chairman Haynes adjourned the meeting at 3:29PM. Respectfully submitted, Hilary Young, Assistant City Clerk Hilary Young, Assistant City Clerk