Merrimack Valley

Methuen water rate increase down the drain ... for now

By J.J. Huggins
Staff writer
Published: July 2, 2008

METHUEN — The Water Department will face layoffs and people will have to conserve water unless the City Council approves a water rate increase, Mayor William Manzi said.

Councilors Monday voted 5-4 to raise rates, but that wasn't enough because a two-thirds majority, six votes, is required when setting water rates, said council Chairman Philip Lahey Jr.

But the council is scheduled to reconsider the rate increase Monday at which time Manzi said he is confident of having the votes.

"It will have sufficient votes at that time, I believe," Manzi said.

Councilor Joseph Leone voted against the increase, and said yesterday it's "quite possible and maybe even likely" he'll vote in favor of the increase the second time around.

He said he voted against the rate because he didn't get satisfactory answers to some questions.

"It was just number crunching," he said, when asked what the questions were. He hopes to get the answers by Monday, he said.

The new rate would charge customers 8 percent more for water, Manzi said.

If the council does not approve the new rate, people will continue paying the rate on their most recent bill and the Water Department will be underfunded, which Manzi said would be forced to let workers go.

"Under those conditions, you could see mandatory water conservation methods," Manzi said. "We wouldn't have the manpower to deliver that water that we have."

"People have to have water," said Lahey, who voted in favor of the increase. "I thought it was a fair rate."

Other than Leone, councilors Jeanne Pappalardo, Kenneth Willette and Larry Giordano opposed the rate increase.

The new rate would increase the price for water for residents from $1.50 to $3 per 100 cubic feet of water, to $1.62 to $3.25 per 100 cubic feet.

People who use more water pay a higher rate. For example, somebody who currently uses less than 1,000 cubic feet of water per quarter pays $1.50 for every 100 cubic feet. Somebody who currently uses more than 5,000 cubic feet of water per quarter pays $3 for every 100 cubic feet.

Under the new proposed rate, a resident who uses less than 1,000 cubic feet per quarter would pay $1.62 for every 100 cubic feet. Somebody who uses more than 5,000 cubic feet per quarter would pay $3.25 for every 100 cubic feet.

The new rate also would increase the service charge from $10 to $15. Senior citizens do not have to pay the service charge. Businesses pay a flat rate, and they would see it increase from $3.25 per 100 cubic feet to $3.55 per 100 cubic feet under the new rate.

The Water Department, which uses the money it raises from rates to fund it's daily operations, raised $4.9 million last year. Officials said they need to raise $5.6 million to operate this year.

There are three reasons why the Water Department needs more money, Manzi said.

The first is that the cost of the chemicals used to treat the water is rising, as well as the cost of fuel and electricity. The second reason is that the city is paying off a loan for a new water tank on the east side of the city, and the third reason is that the city is paying off another loan for the new treatment facility on Burnham Road.

The city will pay a total of $1.85 million annually for 20 years for the loans for the water tank and the treatment facility, Manzi said.

If the council approves the new rate at its next meeting, the city will send out water bills next month, the mayor said.

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Current water rates

Residential

People who use 0 to 1,000 cubic feet: $1.50 per 100 cubic feet

People who use 1,001 to 2,000 cubic feet: $2 per 100 cubic feet

People who use 2,001 to 3,000 cubic feet: $2.50 per 100 cubic feet

People who use 3,001 to 5,000 cubic feet: $2.75 per 100 cubic feet

People who use more than 5,001 cubic feet: $3 per 100 cubic feet

Commercial

$3.25 per 100 cubic feet (flat rate)

Proposed new rates

Residential

People who use 0 to 1,000 cubic feet: $1.62 per 100 cubic feet

People who use 1,001 to 2,000 cubic feet: $2.15 per 100 cubic feet

People who use 2,001 to 3,000 cubic feet: $2.70 per 100 cubic feet

People who use 3,001 to 5,000 cubic feet: $3 per 100 cubic feet

People who use more than 5,001 cubic feet: $3.25 per 100 cubic feet

Commercial

$3.55 per 100 cubic feet (flat rate)

Note: The city bills people on a quarterly basis.

Source: City Council documents