Published June 24, 2021
By MAUREEN DOHERTY
NORTH READING — It was almost inevitable.
Given the combination of last year’s drought and historically high water usage plus the numerous upgrades necessary to the town’s water infrastructure, as the town draws 100 percent of is water from Andover, water rates in town are rising.
Effective July 1, a 2.5 percent water rate increase was approved by the Select Board Monday night.
The 5-0 vote also approved other fees as recommended by Utilities Superintendent Mark Clark and members of the town’s Water Commission.
The vote was taken following the required public hearing held by the board during which Clark outlined all of the specifics that were factored into this decision.
The town has a three-tier water rate system and the new rates for FY22 will be as follows:
• Tier 1: $9.53 per 1,000 gallons, up to 10,000 gallons per quarter (an increase from $9.30 in FY21)
• Tier 2: $13.98 per 1,000 gallons from 10,000 to 22,500 gallons per quarter (an increase from $13.64 in FY21)
• Tier 3: $19.07 per 1,000 gallons above 22,500 gallons per quarter (an increase from $18.60 in FY21).
Other changes to the fee structure include a $100 fee charged to a customer who requests a meter test that turns out to be accurate (up from $80). If the meter test determines that the meter is indeed inaccurate no fee is charged, Clark said. This policy remains unchanged from prior years.
Other increases in fees are related to specific tests. A cross connection test will cost $75 per device, up from $60, and a $100 increase in fire flow tests, which will now cost $350. Clark stated fire flow tests are conducted at 10 p.m. and the increased fee reflects the actual rate of pay of crew conducting this test.
Clark reported to the board that following action taken at Town Meeting, the Water Enterprise Fund (the Stickney Fund and the Water Infrastructure Stabilization Fund) has a balance of $2,770,799, which is 62% of the annual budget for the Water Enterprise. Such reserve funds may be used for two purposes — capital projects or to offset rate increases.
Voters at Town Meeting on June 5 approved a $105,000 transfer from the Water Infrastructure Stabilization Fund to replace a dump truck, a capital expense.
Clark also stated that with 11 months of billing now complete for FY21 and projecting the rate of the final month of June, the Water Department anticipates FY21 revenues of $4,786,040 and he anticipates there will be “$100,000 in retained earnings” by the end of the fiscal year on June 30.
He explained that the significant increase in billing from FY20 were attributed to two main factors — precipitation and historic high usage.
Since the summer of 2020 was classified as being in a state of “moderate to severe drought” in Eastern Mass., the demand for irrigation corresponded to that drought situation.
Similarly, families staying home throughout the pandemic, in particular last summer, contributed to the historic high usage reported by water suppliers throughout the state. This historic usage surpassed usage during a much more severe drought in the summer of 2016, he said. He does not anticipate that this historic usage will recur in FY22.
The FY22 Water Enterprise budget of $4,484,764 is just 0.4% over FY21, or an increase of $16,586.
Clark stated, “The FY22 budget is the first budget representative of the full transition to Andover as the source of North Reading’s water supply.” This transition was made sooner that previously planned to avoid the need to make expensive upgrades to the town’s wells which would then be shut down within a year or two of those upgrades to go with Andover as the town’s supplier. Capital Plan projects for FY22 approved by June Town Meeting were as follows: $1,194,379 for water main distribution and replacement; $200,000 for water distribution upgrades; $100,000 for water storage tank mixers; $600,000 for storage tank painting and repairs — all done through borrowing — and the aforementioned $105,000 dump truck funding by the water enterprise stabilization fund.
