Framingham Water, Sewer Bills Must Rise To Avert Disaster: Study

FRAMINGHAM, MA — Framingham business owners and residents may be in for some large water and sewer bill increases soon — otherwise, Framingham's water and sewer system may drown.

That's the verdict of a consult hired to study the city's water and sewer system following recent deficit problems in the enterprise funds. Consultant Douglas Gardner told Councilors Tuesday night the city's utility rates have not kept pace with costs — the rates did not rise at all in 2021 — and the rate structure is outdated, leaving the city vulnerable to revenue losses if a large ratepayer were to leave town.

"We're still drowning," consultant Douglas Gardner said of Framingham. "But we need to get our head above water."

In upcoming fiscal year 2022, which begins July 1, Gardner is recommending Framingham increase rates by 11 percent. That increase relies on the city using $4.1 million in federal stimulus funds to pay for other costs in the system.

Right now, water and sewer rates are $6.30 and $8.18 per-unit, respectively, for tier 1 users, which includes most single-family homeowners. At current rates, a household using six units (about 4,500 gallons) per quarter pays $86.88. That would rise to $96.42 with an 11 percent rate hike.

By comparison, Mayor Yvonne Spicer has recommended a 9.7 percent rate increase in fiscal 2022 offset by $4.5 million in federal stimulus funds.

Without using federal funds, Framingham water and sewer rates would have to increase by about 20 percent in fiscal 2022. According to Gardner, the Massachusetts Water Resources Authority annual assessment and water and sewer debt service are the two biggest costs right now. And like most other communities, water and sewer revenues dropped during the pandemic due to restaurants and offices being closed. Chief Financial Officer Mary Ellen Kelley has told the Council the city will see revenue pick up in the coming year as the pandemic wanes.

When fiscal 2023 begins, Gardner said the city should increase rates by 12 percent. On top of that, Framingham should institute a minimum charge on all bills that could be used to pay for certain fixed costs, like reading meters, he said. Framingham will likely still have federal money left for 2023, but Gardner said he wanted to show what a rate increase would look like without federal money in the picture.

"It only puts a band-aid on a cut that is bleeding profusely," he said of Framingham's use of federal stimulus funds to pay for the water and sewer funds.