EagleTribune.com, North Andover, MA

Merrimack Valley

July 10, 2007

Council flooded with water rate increase complaints

METHUEN - Residents said they are being blindsided by a water rate increase aimed at encouraging conservation, which in some cases could almost double their bills.

"All of a sudden they need a 40 percent (rate) hike? Give me a break," said Millie Gallo. "How do they expect us to survive?"

During an hourlong discussion with the City Council last night, several residents spoke out against the rate increase proposal, saying it is too much and too fast for consumers who haven't had a rate increase in 15 years.

"I'm angry that such a huge increase would come on all at once, so sudden," said Ed Platz.

The proposal calls for the average bill to increase by $71 from $181 to $252 a year, or 39 percent, according to Water Department estimates.

"I'm furious," said John Ardagna. "If you were doing business and you told your customers that the product is going up 39 percent, you'd lose your customer base."

Under the proposed rate structure, the increase would be much higher for those who use more water For example, a bill of $337 would go to $580 - a jump of 72 percent.

Residents said the tiered system - higher rates as water use increases - is unfair to large families. Mayor William Manzi said the proposal is designed to encourage water conservation.

Because of concerns and questions from the public, the City Council delayed setting the water rate and instead will hold another public hearing to discuss the proposal Monday at 6:30 p.m. at City Hall. The council is expected to take a final vote on a rate increase in August.

City officials agree that some increase is necessary because for years the department's budget has been balanced by spending reserves. Now those reserves are almost gone.

"For now, this is what we need to balance the system," the mayor said. "It's responsible. It's nothing that a mayor likes recommending."

Emma Donnelly, a former Methuen resident and now a consultant, was hired by a group of residents to advocate against the rate increase. Donnelly questioned the Water Department's $4.3 million budget, saying that water users are supplementing outside costs, such as City Hall personnel.

"The increase in the rate is not justified," Donnelly said. "The costs are out of control."



City officials said part of the water bills pay for so-called indirect costs for service, including supplementing the treasurer's office for sending out bills. Donnelly argued that the city is using indirect costs to avoid a property tax increase.

"It's grossly unfair," Donnelly said. "A closer look needs to be taken."

Resident Dorothy Kalil said she plans to start a petition against the increase.

"The impact is going to be dramatic," Kalil said. "My water bill will probably double."

City councilors wanted to review other options. Some said they also felt the proposal unfairly punished people who use a lot of water.

"(Residents) shouldn't be charged a variable rate for consumption," said Councilor Kathleen Corey Rahme. "A gallon is a gallon. I really have a problem with a variable rate."

Councilors who worked on a committee with public works officials said this rate structure was selected because it was fair to the most users. The proposal increases the minimum quarterly charge from $10 to $20. It also provides a $10 senior citizen discount.

"It's not a nice thing to do, but it's something that is inevitable," council Chairman Stephen Zanni said of the rate increase.

If You Go

What: Public workshop to discuss water rate increase

Why: City Council is planning a rate increase of about 40 percent for average homeowners

When: Monday, July 16, 6:30 p.m.

Where: Methuen City Hall, Great Hall

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