SHREWSBURY – According to the town’s water rate analysis and recommendations report, most Shrewsbury consumers can expect an increase in the water rates in the upcoming fiscal year.
The Select Board discussed the report with Assistant Town Manager for Administration and Finance David Snowdon and Water and Sewer Superintendent Daniel Rowley during their April 11 meeting. The board held a public hearing on April 25 and ultimately unanimously approved the changes to the water rates during their May 9 meeting.
The town’s report — conducted through a collaboration between the Town Manager’s Office, the Department of Public Works, and the Select Board — found that the existing rates would produce “annual shortfalls” that could exhaust the Town’s Water Enterprise Fund cash balance within fiscal year 2024.
“Based on projected water usage, the town’s current water rates will not produce adequate revenues to cover the water system revenue requirements in FY 2024 or during subsequent years,” the report reads.
The town’s over 11,000 customers currently pay for water in two ways: a fixed quarterly charge based on meter size and a conservation-based tiered rate structure. The latter of which, according to the town’s water rate analysis, “encourages the efficient use of water by charging customers a higher rate as their water consumption increases.”
Under the new plan, only the tiered rate structure would be changed. The report seeks to increase the town’s water system revenue by 3.50% in 2024.
Residential customers can expect small rate increases.
Approximately 50% of residential consumers, those who consume less than 12,000 gallons of water quarterly, will have their bill increase by no more than 2.85%. Meanwhile, 75% of residential consumers, those who consume less than 17,000 gallons quarterly, will see their bill increase by no more than 3.02%.
Ninety percent of residential consumers, those who consume less than 30,000 gallons quarterly, will have their bill increase by no more than 3.18%.
