By ADAM SWIFT
PEABODY — Residents could see a hike in water and sewer rates, as well as a voluntary water ban, in coming months.
Both proposals are, in part, a result of a March fire at the Coolidge Avenue Water Treatment plant that has seen the city paying out to use water from the Massachusetts Water Resources Authority (MWRA).
“Right now, because of the fire and emergency we had, we are dependent on MWRA water until we get the water treatment plant up and operational again,” said Mayor Edward A. Bettencourt Jr. “We should have the temporary plant operational by October, and that will allow us to go back to our own water supply.”
By the time the plant is operational again, Bettencourt said the city could owe the MWRA up to $2.2 million. Insurance will cover about $1 million of that cost, the mayor said.
At this week’s City Council finance committee meeting, councilors will consider a 10 percent increase in water and sewer rates being proposed by the mayor.
Several councilors have said they would rather see the city use money from its stabilization fund (sometimes known as the rainy day account) to cover the additional MWRA costs rather than raising water and sewer rates.
“When we talk about a rainy day, this is a rainy,” said Ward 6 Councilor Barry Sinewitz. “We had a fire; it was a disaster and we might need $1 million to $1.2 million. That is where we should go to free cash. It’s going to be a huge bill to absorb.”
The mayor said city officials wrestled with whether to go with a rate increase or use the stabilization fund.
“I felt that it was best we went forward with the water and sewer rates because people have more control over that,” said Bettencourt. “I thought it might be more attractive to residents that they have a little more control of the water.”
In addition to a rate increase, It’s also likely there will be a voluntary water ban declared by July 1, according to the mayor.
“Certainly, spring has had a significant amount of rain and we are not near where we were last year … when we did have a mandatory water ban,” said Bettencourt. “There will be a voluntary water ban coming (to) try to curb some of the costs coming from the MWRA. July and August are the (busiest) months for water usage.”
