SWAMPSCOTT — Director of Finance and Administration Amy Sarro and Town Treasurer Patrick Luddy detailed two potential rate options for the town’s water and sewer consumption for fiscal year 2025.
The first rate option proposes a 7.5% increase to the water rate and a 19.5% increase to the sewer rate, while the second includes a 6.2% increase to the water rate and an 18.2% increase to the sewer rate. The two proposals would equate to estimated increases of $124 and $111, respectively, in annual costs to the average homeowner.
Since 2020, Swampscott’s combined rate increase for sewer and water has not been more than 4% in any given year.
“We’ve been trying to be very conservative with those in past years. but it has now left us behind some of our peer communities,” Sarro said. “We’re now at a point where we, at Town Meeting, dipped below our recommended 20% of retained earnings.”
According to Sarro and Luddy, the first rate option has the potential to restore the water and sewer infrastructure budget’s retained earnings to 18%, while the second is estimated to restore it to 17%.
Luddy presented a projection of yearly rate increases through the next fiscal decade if one of the two rate options for this year is adopted by the town. While the water-rate growth was projected to remain at approximately 6% throughout the next three years before lowering, the sewer-rate increase was expected to see an immediate decline down to 6% before gradually decreasing to 2% by FY34.
“I’m sure you did a great job, but I’m very suspicious of anything that goes out beyond five years or even three years,” Select Board member Doug Thompson said in response to Luddy’s projection.
Luddy assured Thompson that the projection does take into account the town’s asset-management report, which identified the most critical areas in need of repair pertaining to water and sewer. The town’s FY25 capital budget approved at Town Meeting includes $3.5 million in sewer repairs for both King’s Beach and Fisherman’s Beach funded through the sewer-enterprise fund, which is another contributing factor for the significant increase.
“It’s a bill that has to be paid,” Town Administrator Sean Fitzgerald said.
With the Water and Sewer Committee set to review the options this week, the Select Board will then have until the end of July to make a final selection.
