Capital Strategic Solutions Can Assist Communities With Applications
The Massachusetts Division of Local Services (DLS) has released the FY2026 application for the Commonwealth Sewer Rate Relief Fund, an important state program designed to help cities, towns, and districts manage rising sewer costs and reduce the financial burden on ratepayers. With $1.5 million appropriated statewide for FY2026, now is the time for municipalities to review their eligible projects and prepare to apply.
The Sewer Rate Relief Fund, established under M.G.L. Chapter 29, § 2Z, was created to offset escalating sewer service costs by providing reimbursements of up to 20 percent of eligible debt service. These awards can help communities stabilize user fees, advance capital planning, and make much-needed infrastructure investments without placing excessive pressure on local budgets.
Eligibility Overview
Eligibility requirements remain unchanged for FY2026. Debt service may qualify if:
- It is permanent debt issued on or after January 1, 1990,
- Issued for a term greater than five years, and
- Used wholly or substantially to finance or refinance water pollution control projects or related wastewater collection and transportation improvements required under state and federal law.
Some important exclusions apply. Debt service is not eligible if it relates to:
- Projects that received state grants, or
- Projects financed through the Massachusetts Clean Water Trust (State Revolving Fund)—unless the community’s total MWPAT debt exceeded $50 million as of June 30, 1995.
Communities submitting newly eligible projects must also provide detailed project descriptions, and DLS has included sample descriptions within the application package to guide applicants.
Applications for FY2026 funding must be submitted no later than Tuesday, January 20, 2026.
Municipalities must attach complete debt service schedules, including schedules from prior submissions, and ensure all refinancing issues are clearly linked to the original borrowings.
How Awards Can Be Used
Communities receiving Sewer Rate Relief awards may apply funds in several ways, including:
- Providing direct credits to user bills,
- Offsetting future year rate increases,
- Supporting capital improvements,
- Treating the award as an additional enterprise fund revenue source, or
- Purchasing equipment that would otherwise require borrowing.
DLS has provided example “Use of Proceeds” statements to help communities clearly articulate their planned approach.
How Capital Strategic Solutions Can Help
Capital Strategic Solutions has extensive experience supporting municipalities with state and federal grant compliance, enterprise fund planning, and infrastructure project documentation.
Our team can assist cities, towns, sewer authorities, and districts with:
- Reviewing debt eligibility and identifying qualifying projects
- Drafting required project descriptions
- Preparing “Use of Award Proceeds” narratives
- Ensuring complete and compliant application packages
- Coordinating with DPW staff, finance teams, and external stakeholders
- Submitting applications ahead of the January 20 deadline
We understand the pressures facing local governments as they work to manage aging infrastructure, rising costs, and ratepayer expectations. The Sewer Rate Relief Fund is a valuable opportunity for communities to secure financial support—and we are ready to help you take full advantage of it.
Contact CSS for Application Assistance
If your municipality is considering applying to the FY2026 Sewer Rate Relief Fund, or if you need support assessing eligibility, preparing documentation, or submitting your application, Capital Strategic Solutions is here to help.
Contact us today to get started.
About Capital Strategic Solutions
CSS is a certified woman-owned, disadvantaged business enterprise of municipal experts delivering creative, cost-effective solutions that maximize success and minimize risk. With deep local government expertise, we craft tailored strategies to meet each community’s unique needs.
Our capabilities span public administration, municipal finance, human resources, policy development, emergency management, public safety, public works, water operations, interim municipal services, public relations, community engagement, project management, grant writing, and onsite support. We partner with clients to define clear goals, overcome challenges, and implement human-centered plans that drive performance and transform communities.