The Select Board on July 12 approved a combined water and sewer rate increase of 7.2 percent for the fiscal year that began on July 1.
The rate reflects a 10.8 percent rise in the water charge and 4.7 percent more for disposal into the sewer system. The financial impact on individual consumers depends on consumption.
There are two rate categories: ”R1,” which remains at $1.80 per 100 cubic feet for water and $3.20 for sewer, and “R2,” which applies when usage exceeds 2,000 cubic feet in the six-month billing cycle. That rate will rise from $9.90 to $10.90 for water, and $13.70 to $14 for sewer.
These apply to residences and small businesses; the “R2” threshold for commercial/industrial users is 333.33 cubic feet.in the billing cycle.
There also will be an increase of $13 and $15, respectively, in the base charge for water and sewer, the first change since 2000.
Also approved was a rate of $13.30 per 100 cubic feet of water specifically used for lawn and garden irrigation, a 17.7 percent jump. Water use charged for irrigation is measured on a separate meter.
According to a memorandum from two town department heads, the combined annual residential impact of the impact on an average user – based on 6,000 cubic feet per year — will be $54. Finance Director David Castellarin and Public Works Director David Manugian reported that the current average water and sewer payment is $752.
Variables leading to the recommended rate increases included higher costs from the Massachusetts Water Resources Authority, debt payments for water and sewer projects, and a decline in water consumption.
All of Bedford’s water emanates from the regional system; town officials suspended drawing from the Shawsheen Road wellfields more than two years ago because of concerns about possible chemical contaminants.
This is the largest combined rate increase since 7.2 percent in fiscal year 2019; two years earlier the percentage was 8.6. Board Chair Emily Mitchell recognized the current increase, noting, “We had three years of pandemic when we weren’t doing much. On the whole, this doesn’t feel out of line” with previous patterns.
Although the vote was unanimous, several board members acknowledged the magnitude of the increase.
Ed Pierce looked for a path of financial relief. “Everybody’s got higher bills tp pay,” he said. Pierce proposed that if water revenue exceeds the budget this fiscal year, perhaps there could be a commensurate tax rate reduction through appropriation of free cash.
“What I really would like to know is where I’m using the water. How am I consuming this amount of water? I’m sure I’m not alone,” Pierce continued. Amy Fidalgo, assistant town manager of operations, said there is a developing technology that is expected to be able to break down usage for consumers.
Mitchell pointed out that one of the Select Board’s “overarching goals” is sustainability, and that could be reinforced by “opportunities to make consumers more aware of how much they are using and how they can be better stewards.”
Margot Fleischman pointed out that “we still want to encourage people to take measures to conserve water.” But “as the delta (between the two rates) grows, it begins to call out for some scrutiny as to whether an intermediate rate might be something we’re looking at.” Perhaps this would “keep commensurate cost to commensurate usage.”
The increase in the base sewer rate charge from $22.50 to $30 actually accounts for almost half of the sewer rate increase. Bopha Malone asked if it will be another 20 years before the base is adjusted again. Fidalgo replied that after installation of upgraded meter reading equipment, several years elapsed, extended by the pandemic, when fee increases were not considered.
Mitchell asked about the relationship with the MWRA. Manugian said the largest expenses are for water purchase and sewer use. The town budget is approved every year before the MRWA sets its rates, so the town and the agency work together to arrive at cost estimates.
Water and sewer rates are calculated mathematically, factoring personnel costs, purchase of water and related services, sewer charges, and debt payments for bonded water and sewer projects. “We come up with a rate by taking the estimated system costs and dividing those costs by the estimated consumption. The consumption is based on previous years’ actual consumption,” Manugian explained in an email on Tuesday.
This means that reduced consumption contributes to the higher rate, because “all of the fixed costs are more or less unchanged and divided over a smaller consumption base.”
Pierce noted that fiscal 2022 data which showed dramatic shrinkage in commercial and industrial water use, a result of the impact of the pandemic on workforce size and location. The fiscal 2022 total was about 4.5 million cubic feet, less than half of the consumption of five years ago. Pierce pointed out that an increase in consumption this year could provide revenue in excess of the budgeted amount.
Fleischman asked if commercial and industrial use is expected to recover this year. Manugian said it’s unpredictable, especially on the lawn irrigation.
Mike Rosenberg can be reached at [email protected], or 781-983-1763
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