NORTHBOROUGH – The typical residential customer in Northborough may soon see an increase of $5 per quarter on their water rates.
The water and sewer rate study was presented to and adopted by the Water and Sewer Commission on Aug. 16.
Northborough is proposing a 3% increase on the water volumetric rates and an approximately 12% increase on water fixed charges.
According to town consultant Raftelis, a typical residential customer, who uses about 1,900 cubic feet, has a quarterly bill of about $340.
These changes would amount to a $2 increase in the base charge and $3 volumetric increase.
MWRA assessment
Northborough has two separate enterprise funds for water and sewer. Northborough’s rate study is evaluated multiple times a year.
“As everybody knows, we went through a troubling time through the pandemic,” Department of Public Works Director Scott Charpentier said. “There were some significant impacts that were outlined last year due to the pandemic.”
Northborough receives all of its water from the Massachusetts Water Resources Authority (MWRA).
During a presentation on the water and sewer rates last August to the Board of Selectmen, Charpentier told the selectmen that during the pandemic the MWRA’s large users didn’t require as much water. Communities like Northborough used more water than they usually did.
This meant Northborough’s percentage of overall use increased during fiscal year 2021. That translated to higher MWRA assessment in fiscal year 2022, according to Charpentier.
In a typical year, the increases range between 5 to 7%, but in fiscal year 2022, the assessment increased by over 26% or $338,000.
“Well above what we typically project,” Charpentier said. “Nobody was projecting a global pandemic.”
Additionally, last summer was a particularly wet summer, meaning the town’s revenue was down over $100,000 from the past fiscal year, he said.
To recover, Charpentier said the town made amendments to its operating budget and cut “a lot” of their project expenses.
For fiscal year 2023, the town budgeted $2.6 million for the water enterprise fund, which was a decrease of nearly 11%.
Raftelis’ David Fox noted that between Fiscal Year 2022 and 2023 Northborough’s MWRA assessment decreased by 14%.
No sewer rate increases
The town is not proposing an increase to its sewer rates this year.
According to Fox, the town has been preparing for a resolution to the town’s litigation with the City of Marlborough.
Northborough discharges its sewage at the Westerly Wastewater Treatment Plant.
(Photo/Laura Hayes)
Last year’s rate study said Northborough’s estimated sewer expenses were complicated because there wasn’t an intermunicipal agreement with the city. Additionally, there were questions regarding Northborough’s responsibility when it comes to the plant’s upgrades.
Fox said Northborough has been building up “some significant” reserves.
“We hope we’re getting really close to having some resolution there,” Fox said. “At this point in time, we think we have enough of a reserve fund to mitigate the changes that are coming — potentially back payments to Marlborough — and set ourselves up in a good financial position going forward with hopefully some normalcy without having a rate increase this year on sewer.”
Fox is anticipating that Northborough residents may see a 4% water and sewer rate increase in the next fiscal year and beyond.
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