The main issue with developing the Water Department budget for FY2012 was the conversion of approximately 1 million dollars of short term debt to a long term bond.  Short-term debt and free cash were used to fund water main replacements on Gail Street, Grove Street, High Street Extension and on portions of Haverhill Road, Ipswich Road, North Street, Main Street, Mansion Drive, Washington Street and Woodside Road.  The debt portion of these projects was initially funded using short term bans which require interest only payments for the first 3 years.

The Finance Committee issued their guidelines and it was clear that in order to reduce the effects of the new debt payments on water rates more aggressive cost cutting action was required.  To this end the following steps were taken: