The Lisbon Water Department and town have entered into a two-year agreement to consider a merger as they look into opportunities to save money and operate more efficiently.

“The MOU (memorandum of understanding) serves as a flexible, nonbinding framework that allows both organizations to gather information, engage the public, and determine whether a merger is in the best long‑term interest of the community,” according to a department news release issued Wednesday.

Officials representing the two groups held a workshop last month to discuss a potential merger and how the town can help the department overcome some long-term concerns. The Water Department has struggled to hire a general manager, a position that interim Manager Shellie Reynolds has been filling since 2024.

This is the closest the Water Department has come in recent years to a potential merger with the town, which department officials have not favored in the past.

“The two-year agreement marks the first step in a collaborative effort to evaluate options to improve efficiency, reduce administrative costs, and strengthen long-term service delivery for both taxpayers and ratepayers,” the release states.

Lisbon Water Department is structured in a unique way — not quite an independent entity but also not operated by the town. It is considered quasi-municipal, Town Council Chair Chris Camire said.

Though it is early in the process, it is likely Water Department management will either stay the same or merge with the town, he said.

As part of the MOU, the town and Water Department will study operational processes, assess financial impacts and develop a work plan to guide the process for the next two years, the release said.

“Current vacancies in the leadership structure of both the town of Lisbon and Lisbon Water Department have created what officials describe as a ‘unique moment’ to consider changes to how the organizations are structured.”

The memorandum of understanding does not guarantee a merger, Camire stressed Thursday, adding, “The purpose of the MOU is to research the best outcome for the community.”

Periodic updates about the process will be provided to the public at future meetings. No meeting between the two entities has been scheduled, Camire said. The working plan needs to be developed by July 1.

The next Town Council meeting is Tuesday; the next Water Commission meeting is March 10.