DPW: At First Glance, No Increase In Water, Sewer Rates for Fiscal ‘23

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Photo: Water and sewer rates are likely to stay where they are into fiscal ‘23.

While inflation has reached seven percent over the past 12 months, Belmont property owners will likely have some good news when it comes to the water and sewer rates for the next fiscal year. And that change is no change for the fourth year – as the Director of the Department of Public Work reported to the Select Board on Monday, Jan. 24.

DPW head Jay Marcotte told the board based on discussions with Town Administrator Patrice Garvin and Town Accountant Glen Castro and the current view of the budgets and the level of retained earnings, “we’re potentially looking at another zero percent for [water and] sewer rates.”

The water and sewer rates are traditionally voted on by the Select Board in late March or April when each line item is based on hard and true numbers, said Belmont Select Board Chair Adam Dash.

In terms of the water budget as of the last week in January, the department’s biggest expense – the Massachusetts Water Resources Authority assessment to the town for supplying water which accounts for 43 percent of the budget – is anticipated to fall by approximately five percent from last year’s $3,336,000 valuation, a marked reduction from the nearly 10 percent increase for fiscal ‘22.

”It’s not official yet we are still waiting on the official document [which is delivered in early March] … but from circles of people we know at the MWRA, that’s the estimated number,” said Marcotte. In addition, there is a reduction of $62,850 in MWRA loan payments – now at $854,200 – as the town continues to pay down that line item.

As for the Water Department’s big ticket items in the coming year, the department will spend $250,000 to continue its multi-decade water main project while parceling out $169,000 for equipment replacement.

At the end of January, the water department fiscal ‘23 budget grand total comes in at $7,838,000, up by 1 percent with the department using last year’s MWRA assessment as a placeholder.

”So basically the water budget’s flat when you do all the pluses and minuses,” said Select Board Chair Adam Dash.

Unlike the water budget, sewer “is a different animal … with a variety of pressures,” said Marcotte, including a higher MWRA assessment, larger debt load and far more regulations that puts pressured on expenses.

“There are just more costs associated with sewer,” said Marcotte, pointing to the department needing to transfer $600,000 to the Community Development Office allocated for the town’s sewer and stormwater improvement plan so the town remains in compliance with the federal and state departments of environmental protection.

The MWRA’s sewer assessment is expected to increase by 4.5 percent, said Marcotte. The grand total for sewer in fiscal ‘23 is currently $10,806,000, an increase of $356,500 or 3.8 percent.

The saving grace for residents is the significant level of retained earning for both entities enterprise funds: Marcotte reported that certified retained earning for water is $2,810,724 and $2,894,974 for sewer.

”We try every year to balance the retained earnings and how much we use … to offset rates and that’s why we’ve been lucky enough for the last four years to not have a rate increase,” said Marcotte.

A definition of retained earnings is below:

Massachusetts Department of Revenue

No Increase In Belmont Water, Sewer Rates … Again

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Photo: Water main on Brighton being repaired

The annual adjustment of the Belmont water and sewer rates was no adjustment at all as both will remain unchanged from the previous fiscal year. This marks the third consecutive year for water and fourth for sewer where rates remained flat, said Jay Marcotte, director of the Department of Public Works who announced the report at the Select Board’s virtual meeting held Monday, May 10.

The average Belmont homeowner will see its monthly bill remain at approximately $140 for fiscal 2022 beginning July 1.

“It’s surprisingly good news for the ratepayers. I wasn’t expecting it to be this good,” said Select Board Chair Adam Dash.

The zero rate comes as the Massachusetts Water Resources Authority imposed a whopping 9.7 percent increase in Belmont’s assessment, up from the one percent hike in 2020. “This year my eyes popped out of my head when we got the increase,” said Marcotte, as it represented a $296,000 jump from 2021. The MWRA sewer assessment came in at a more typical 3.6 percent.

As with last year, planned use of retained earnings was used to offset the MWRA increase. “We’ve been purposely drawing down [earnings] to basically stabilize rates and not have any impact to our [customers],” said Marcotte.

Marcotte told the board the DPW will continue its quarter-century water improvement program in which all of Belmont’s pre-1928 cast iron mains – which makes up 42 percent or 38 miles of the town’s total – will be replaced. This year, about 6,970 linear feet of pipe will be removed resulting in 31.4 miles of the pre-1928 mains now replaced with the program 83 percent complete.

On the sewer side of the ledger, the town will replace two existing pump stations and start a new one in the Winn Brook neighborhood while budgeting $450,000 for sewer and storm drain main repairs and upgrades.

In addition, $150,000 from both water and sewer capital will go to the installation of fuel tanks at the DPW Yard.

No Increase In Water,Sewer Rates (Again) As Monthly Billing Coming By Jan. 1

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Photo: Water main being replaced by Belmont DPW

Belmont water and sewer customers will receive a nice surprise as rates for those services will remain steady for the upcoming 2021 fiscal year. This marks consecutive years for water and the third year in which sewer rates will not increase year over year.

And by the new year, customers will be paying those charges monthly as every customer has been fitted with an electronic measuring device.

Department of Public Works Director Jay Marcotte presented the rate proposal before the Select Board at its virtual meeting held Monday, May 11.

Marcotte noted the major cost driver pushing rates higher is due to the annual assessment of the Massachusetts Water Resources Authority, which supplies the town with water and takes its sewage. The MWRA’s water and sewer assessment for fiscal ’21 increased by 1 percent, with most of that growth due to debt held by the agency. Nearly 48.3 percent of Belmont ratepayers water bill comes from the MWRA’s assessment, and 62.7 percent of the sewer payment. 

With the planned use of retained earnings to offset the increase, the rates will remain where they are for another year, said Marcotte. The average Belmont homeowner who uses about 3,000 cubic feet of water will see their quarterly bill remain at approximately $440 for fiscal 2021 that begins July 1, 2020.

And by January 2021, that bill will be coming to customers 12 times a year as opposed to quarterly. With the Smartmeter installation program now 99 percent complete, the department can institute monthly billing.

“We’re working with Belmont Light … to streamline and have one bill” going to customers both departments. While moving from a quarterly to monthly payment will likely increase the cost of mailing it out, “monthly billing is our number one ask by customers” as it will be easier for them in their own budgeting.

Marcotte told the board the DPW will continue its quarter-century water improvement program in which all of Belmont’s pre-1928 cast iron mains – which makes up 42 percent or 38 miles of the town’s total – will be replaced.

This year, about 6,970 linear feet of pipe will be removed which will be 31.4 miles of the pre-1928 mains replaced which will result in the program being 82.8 percent complete. Those streets include Chester, Hammond, Fletcher, Van Ness and Gorham.

With the town expected to transfer all its nearly $2 million pavement management line item for fiscal ’21 to balance the town-wide budget, Marcotte said his department will place a more durable temporary asphalt “patch” on the roadway.

The sewer budget will focus on water quality improvement, system upgrades and replacing two pump stations and a new station in the Winn Brook neighborhood with surcharge mitigation improvements.