The city council approved a 4 percent water rate hike on Monday night.
That increase sets up a 4 percent increase for the combined water/sewer rates for residential and commercial properties for FY27.
Under city ordinances, the council approves the water rate, while the city administration sets the sewer rate.
The approved combined water/sewer rate for FY27 is $21.09 per HCF (hundred cubic feet) for residential properties and $34.82 per HCF for commercial users.
The water and sewer budget operates under a revolving fund, where the money taken in through fees covers the expenses. City finance director Richard Viscay said the increased assessments from the MWRA are the driving factor behind the rate increase.
“It is my expectation that a 4% increase in the effective water/sewer rates for FY2027 will generate enough revenue to cover all direct and indirect costs of the water/sewer enterprise fund,” stated Viscay.
Several councillors asked if there was a way to increase exemptions for senior citizens or look at ways to lessen the impact of the rate increases, especially given that residents faced a rate increase of over 9 percent last year. There were also questions about whether use of existing stabilization funds this year were worthwhile to hold off on a rate increase.
Viscay noted that using the stabilization funds this year would effectively lead to doubling the increase for FY28, as the stabilization funds would have to be built up again.
Ward 4 Councillor Paul Argenzio asked about the city looking at a tiered approach to water rates, where residents who use less water would pay a lower rate. He noted that a tiered approach would likely benefit senior citizens and others who do not use as much water.
“I think it is a great idea and I’d be happy to work with the DPW, water and sewer, whomever,” said Viscay. “That might be something where you want to bring in a consultant … you can set all these tiered rates, but if we miss, we put ourselves behind the eight ball. But I think there are organizations out there that can do a pretty comprehensive exam on that; and … those who use less water would pay less.”
Argenzio noted that a tiered rate might also promote water conservation.
“I guess you are asking us to either pay now or pay later, but we’ve got to pay,” Council President Anthony Zambuto said before the vote. “The decision is do we want to kick the can down the road and pay it next year, or do we go with the 4 percent increase that MWRA is charging us; so it is as simple as that and it’s up to us to make the decision.”
The water rate hike passed with an 8-2 vote, with Councillors Michelle Kelley and Marc Silvestri voting no and Councillor Robert Haas III absent.