Jamestown BPU customers could be looking at a 7% to 7.5% water rate increase – though the 2026 budget for the water division isn’t final yet.

Budget work continues for the Board of Public Utilities for 2026, this time with the board taking a look at the draft budgets for the Solid Waste and District Heat divisions and reviewing the key items for the wastewater and water divisions.

Kevin Karr, BPU finance and customer accounts manager, said the water division is the most challenging of the divisions reviewed during the BPU board’s most recent meeting.

“Water is in a critical cash position, so there is the possibility of a rate increase,” Karr said. “Right now we’re looking at seven percent or seven and a half percent.”

In the water division, Karr said the BPU is looking to expand into other communities as well as a way to increase its customer base. At the same time, the BPU is looking to continue to control water costs as well, though Karr noted the Cassadaga Pump House is in serious need of repairs. Some concerns for this division include financing Cassadaga Pump House work while also managing to pay for capital projects. Significant expenditures for water meters are expected moving forward, but that is something Karr said will also be reflected in the wastewater division’s budget. New equipment and trucks are needed, so Karr said that is something else they are working to add into the budget as well.

“Our customer base is remaining stable,” Karr said. “If they could just drink more water, that’d be great.”

Karr began with the district heat division, where he said there is a lower projected amount in the budget for capital projects based on past history. A 10% increase in revenue has been worked into the budget, based on a projected rate increase and energy purchases. The amount budgeted for repairs has increased slightly as well.

“That could be a touch and go situation,” Karr said. “District heat can have very large repairs, so that is something we are going to keep looking at at the moment, but that does keep it in a positive net income going forward.”

Karr then looked at sales history for the district heating division, saying that the next few months are usually slower in that area than other times of the year, so he did not expect a large increase in revenue coming up. He then went over expenses for district heat, including IT and capital projects. A finalized district heat budget will be presented at next month’s meeting.

For solid waste, 2026 revenue is expected to stay fairly stable, and Karr said they are also in a fairly stable cash position. Some retirements are expected and Karr said hopefully maintenance fees will be going down also, with the purchase of new garbage trucks and the replacement of older ones.

“Buying a new truck brings down our costs, these trucks get a lot of usage, a lot of hydraulics are used all of the time,” Karr said. “They’re out in the winter, they’re out in the summer. They’re hauling a lot of materials, but we’re keeping an eye on expenses.”

As far as revenue for solid waste goes, Karr said it is expected to stay pretty much stable, though there is a slight dip with the elimination of dumpsters. The BPU is also looking into a new recycling program going forward, which is specifically for new tracking for the recycling bins that are already there. There is no anticipated rate increase for solid waste in 2026, and a finalized budget will be presented at the next meeting as well.

Moving on to key items for wastewater, Karr said a major goal is to increase revenue by doing things like possibly taking in new customers from outside the community. The BPU is also looking into more grants, controlling expenses, sliplining, and is looking at a possible three percent increase for wastewater, but Karr said the hope is to reduce that to zero.