BETHEL — The Town of Bethel has completed its purchase of the Smallwood water system formerly operated by JD Water, formally establishing the new Smallwood Water District and shifting the privately run utility into municipal control.

“The purchase of the JD Water Company by the Town of Bethel has been closed and completed,” Supervisor Dan Sturm said at Wednesday night’s Town Board meeting. “This is a significant milestone for both the Smallwood community and the Town of Bethel.”

Sturm said the acquisition was driven by the planned retirement of longtime operator Dennis Dietrich and the need to maintain reliable service for hundreds of seasonal properties that depend on the system.

Sturm said approximately 300 to 400 homes in Smallwood rely on the seasonal system, which operates from May 1 through Oct. 15. Without that service, he said, these seasonal properties would be uninhabitable come May.

“If they don’t have water, they can’t come here,” Sturm said. “It is that serious.”

The town established the district by order on Jan. 14, with the filing acknowledged by the state comptroller’s office on Feb. 9. Officials emphasized that the move allows the town to assume control of operations, pursue grant funding and provide long-term stability for the system.

“To be clear, we would not allow the water company to fall into the wrong, uncertain hands,” Sturm said.

Sturm said the acquisition cost totaled about $235,000, with additional legal and engineering work bringing the total to roughly $270,000. To fund the purchase and startup expenses, the town plans to issue a $500,000 bond, subject to referendum.

The bond would also cover the purchase of equipment, including a truck, excavator and trailer, as well as initial capital needs for the system.

Sturm said the debt and operating costs will be borne entirely by users within the new district.

“There will be zero costs for any Town of Bethel resident outside of the newly-formed Smallwood Water District,” he said.

The town expects the bond to be repaid over 30 years, with costs incorporated into user rates.

The board also adopted a new rate structure for the district, replacing a schedule that had not been updated since 2009.

Sturm said rates were increased by about 15 percent to reflect rising costs and the need to operate the system under municipal management. “Our logic was, it’s one percent a year since 2009,” Sturm said. 

Annual base rates include $561.69 for a residential dwelling, with higher charges for properties with hoses or pools. Additional fees may apply for certain uses, such as filling swimming pools.

Bills are expected to be issued this spring, with initial payments due by June 1 as the town transitions account data from the former private system. Sturm said the town would allow some grace for late payments as bills are being distributed late, but unpaid bills would eventually be added to property tax bills rather than shutting off service. 

The town has hired William Weiss as water operator, with an eight-month salary of about $43,943, and Rafael Hernandez as part-time support. Dietrich will remain on as a consultant during the transition at $1,000 per month.

A customer service team—Megan Maniec, Kelly Bonicai and Dina Sturm—will handle billing and account management.

Officials said the town has already begun preparing the system for the 2026 season, with service expected to begin May 1, weather permitting.

Sturm said the town is already pursuing state and federal funding opportunities to support infrastructure upgrades and improve water quality.

“The town is well suited to apply for and receive grant funding,” he said. “Our aim is to improve water quality and infrastructure for residents.”

Officials acknowledged that the first year will serve as a transition period as the town audits accounts, evaluates system needs and adjusts operations under municipal control.