Preston holds FY27 Budget Public Hearing

PRESTON – The Preston Town Commission held a public hearing on May 18 on the proposed fiscal year 2027 town budget. Formal adoption of the proposed budget will not happen until June, but the town is expecting to increase water and sewer rates to keep up with the cost of running Preston’s wastewater treatment plant.

Preston’s recently appointed Commission President Scott Messick opened the hearing by saying, “I would wish for the people of this town to find kindness, compassion, and something in common instead of derisiveness and division.”

The discussion focused on rising infrastructure and utility costs, including approximately $50,000 spent on water leak repairs this year and ongoing debt payments associated with the town’s wastewater treatment plant loan from the Maryland Department of the Environment.

To cover the cost of running the wastewater treatment plant, the town has proposed increases to water and sewer rates. The proposal includes a 15% increase to water rates and a 5% increase tied to sewer capital recovery and water replacement costs. The basis for these increases is a 2017 rate study and Preston’s most recent financial audit, which identified a deficit of around $35,000 as a result of undercharging for water and sewer rates.

Residents asked questions throughout the hearing regarding state aid formulas, audit contracts, utility infrastructure, reserve funds, and opportunities for greater public transparency. Commissioners discussed future improvements to budget reporting, including providing side-by-side comparisons in future budget cycles and making quarterly financial updates more publicly available.

Commissioners still want to review some aspects of the budget, like exploring whether grant funding could help relieve wastewater plant debt. The proposed FY27 budget must still go through a second reading before formal adoption and eventual implementation on July 1.