SAUGUS — The Board of Selectmen has given the go-ahead for a 7 percent sewer rate increase for fiscal year 2021, which will raise residents’ sewer bills by a yearly total of $22.
During a numbers overview presented at Wednesday’s board meeting, town consultant Matt Abrahams said the rate hike would raise the average bi-yearly residential sewer bill by $11 to $175, and raise commercial sewer bills by $107 to $1,632.
Initially recommending the board approve a 10 to 12 percent increase, Abrahams explained that the town’s sewer enterprise fund ran into a nearly $700,000 deficit in FY20, impacted by lower billings that were the result of less water consumption following wetter-than-normal weather patterns and residents’ inability to pay due to the COVID-19 pandemic.
He added that sewer fund expenses are expected to rise 12 percent in the coming year, noting that increasing sewer rates would help avoid budgetary shortfalls.
“The rates just haven’t kept up with expenditures and they haven’t for a few years now,” Abrahams said.
Selectwoman Corinne Riley was the sole opponent of the increase and argued that raising costs during a time when so many people are out of work due to a global public health crisis wouldn’t be fair to residents.
“To try to address it now is not the right time,” she said. “Record numbers of people have lost their jobs and we’re holding food drives, toy drives, to help the kids who don’t have meals at home. We’re doing all we can to help the small businesses stay afloat … this is not the time to ask our residents and businesses to dig deeper into their pockets to address the sewer increase.
“Every penny counts at this point with so many people not working because of the pandemic.”
Although Riley’s motion to postpone the increase was voted down, she requested that next year’s meeting be announced 14 days in advance to give residents adequate notice.
Selectman Jeff Ciccolini said that while he understood how financially difficult the year has been for many households, rejecting a rate increase for 2021 would only delay the inevitable.
“As sewer commissioners, we have a fiduciary responsibility to the residents of the town to maintain this fund and make sure this fund continues and is sustainable,” Ciccolini said. “By voting in a 7 percent increase, we’re already depleting our retained earnings by two-thirds … By not voting in a sewer increase, we are literally pushing the burden to 2022.”
Selectwoman Debra Panetta said that if the sewer enterprise account is depleted, the town will need to dip into its operating budget, taking funding away from other entities.
“This is not something any of us want to do,” she said. “I don’t like increases, but it is our responsibility, and we need to do what’s best for the town based on the analysis presented to us.”
