PFAS Treatment Demands Could Trigger 30 Percent Annual Water Rate Hikes
Key Points
- Selectboard requests $4 million in federal aid to offset $86 million in projected PFAS water treatment costs
- Town officials warn that 30 percent annual water rate increases may be necessary to fund mandated water filtration
- Duxbury secures $18.1 million bond sale at 3.51 percent interest rate bolstered by its AAA credit rating
- Finance Director clarifies that $5 million in Seawall project savings cannot be transferred to the DPW facility budget
- Selectboard schedules training for the state's Senior Circuit Breaker tax relief program for April 7
The financial reality of Duxbury’s water quality challenges came into sharp focus Friday morning as the Selectboard moved to secure federal aid for critical infrastructure while warning of significant looming costs for residents. During a remote session, the board discussed a formal request for $4 million in congressional discretionary spending to address PFAS contamination in the town's drinking water supply, a project that carries a total estimated price tag of $86 million for two new treatment facilities.
Member C. Ladd Fiorini read the support letter addressed to Senators Elizabeth Warren and Ed Markey, which outlined the dire necessity of the funding. The town is seeking funding for critical infrastructure for the drinking water supply. Several wells exceed compliance limits for PFAS and have been removed from service,
she read, noting that the first facility must be operational by 2030. The fiscal impact on households is expected to be steep, with the letter stating the project will require water rates to increase by 30% each year
to meet the burden without additional aid.
Member F. Guitart emphasized the scale of the work performed by Water and Sewer Superintendent Candace Martin, noting she did herculean work
to position the town for the grant. He stressed that residents must prepare for difficult trade-offs. It would be good to get a summary of all funding sources in front of the community. We have major liabilities and competing interests like the bridge,
F. Guitart said. It's about making informed choices—do we water the garden or spend less to avoid building expensive PFAS plants?
Chair B. Glennon added that the board is exploring less expensive options, such as volume management to keep PFAS levels below 4 parts per billion, but warned the costly infrastructure remains the primary alternative if those efforts fail. Motion Made by C. Ladd Fiorini to approve and sign the letter of support for the discretionary spending application for the town of Duxbury water quality improvements. Motion Passed (4-0).
The board also finalized the execution of an $18.1 million general obligation bond sale, taking advantage of the town’s high credit standing to secure favorable terms. Treasurer/Collector Corey Leiden reported that a competitive bidding process on April 1 resulted in 15 bids, with Fidelity Capital Markets offering the lowest True Interest Cost (TIC) of 3.5198%. Today the Board is asked to authorize the issuance of $16.96 million in general obligation bonds,
C. Leiden said, explaining that a $1.2 million premium allowed the town to reduce the total principal amount of the bonds while still meeting its $18.2 million funding requirement.
Financial advisor Lynn Welsh of UniBank credited the town's AAA bond rating for the competitive interest rate. Duxbury is a quality AAA rating. This means you save between 25 and 50 basis points compared to a Double-A Plus spread,
she explained. B. Glennon sought to reassure taxpayers regarding the town's borrowing habits, stating, I want to underscore that for taxpayers. We are being very careful with the borrowing on these projects.
Finance Director Mary MacKinnon confirmed that the borrowing for the ongoing DPW project is being phased, noting that while $27.39 million was authorized, the town has only financed $25.4 million to date. We want to avoid issuing debt in excess of costs if we come in under budget,
M. MacKinnon said.
During the discussion, Vice Chair A. MacNab sought clarification on whether the savings from the recently completed Seawall project—which finished roughly $5 million under its original $20 million authorization—could be redirected. M. MacKinnon clarified that money does not move from one project to another,
and the town will instead ask a future Town Meeting to rescind the remaining unused authorization. Motion Made by A. MacNab to authorize the sale of the town's $16,960,000 general obligation municipal purpose loan of 2026 bonds as outlined in the document entitled "Vote of the Selectboard" dated April 3rd, 2026. Motion Passed (4-0).
The board also addressed a question from resident Christine Hill regarding why the Alden School feasibility project was not mentioned in the S&P credit rating report from 2025. M. MacKinnon responded that S&P has been aware of the project since 2024 and was briefed again as recently as March 12th. We provide our full capital projects list to S&P. What they choose to include in their written opinion is wholly up to them,
she said. A. MacNab also pushed for better communication regarding tax relief for seniors, following M. MacKinnon's announcement of an April 7 training session on the Senior Circuit Breaker program. I'd also like to get an agenda item sometime regarding all the various forms of tax relief for seniors to increase awareness,
A. MacNab noted, responding to concerns that the current training session was organized on short notice.