Laboring in relative obscurity, the Acton Water District Finance Committee (AWD FinCom) grapples with tough problems and big price tags. Their work is becoming more complicated and possibly more consequential as the Water District faces escalating capital and operational costs to remove perfluoroalkyl and polyfluoroalkyl substances (PFAS) and other contaminants from the water supply.
The AWD is a separate municipal entity from the Town of Acton, with its own Charter, Bylaws, Board of Commissioners, Annual Meeting, Moderator, and Finance Committee. According to the Bylaws, FinCom’s responsibilities are to review the budget for the Annual Meeting, make recommendations to the Commissioners on any matters of a financial nature arising out of an Annual or Special Meeting, and make recommendations as to the long-range fiscal plans of the District. The three members of the committee are appointed by the AWD Moderator, and serve three-year, renewable terms.
As of their May 26 meeting, the committee has a new chair and one new member. The new chair is William (Bill) Guthlein. He has been a FinCom member for approximately ten years. He brings to the committee a background in corporate financial management, underlain by an MBA from Harvard Business School. In addition, he is a lawyer, Certified Public Accountant, and Chartered Financial Analyst. The new member is John Peterson, a veteran of the Acton School Board. He leads a consulting company in the pharmaceutical industry, making use of his PhD in organic chemistry. The third member of the committee is engineer Ron Parenti, who is a former Water Commissioner and currently serves on the Town of Acton Water Resources Advisory Committee.
When asked about his priorities for the committee for the coming year, the new chair replied by email, “… the top priority of the Finance Committee is always to provide oversight of the financial management of the district. This role involves periodically reviewing operating results and investment performance; reviewing and recommending approval of the budget and warrant articles to the public at the annual meeting; and providing advice to the Commissioners about water pricing and capital spending. These latter items, water pricing and capital spending, are currently the focus of FinCom’s efforts as the cost to treat PFAS and other contaminants drives up water rates. The FinCom is currently preparing a proposed Scope of Work for a water rate study for the district. Volume rates vs. fixed fees, summer rates vs. winter rates, and increasing block rates [the tiered system by which larger-volume users pay more per cubic foot] all have an impact on who pays for the cost of water. Water rates influence the incentive to conserve. There is also concern about the burden water rates have on low-income households.”
