Marchetti Proposes 8% Water/Sewer Increase
PITTSFIELD, Mass. — The City Council agenda on Tuesday includes water and sewer rates as well as a proposed change to the schedule and calculation for predictability and fair pricing.
For fiscal year 2025, Mayor Peter Marchetti has proposed water and sewer rate hikes of 8 percent each.
This would raise the average water bill for one toilet by about $24 per year, rising from $295.52 in FY24 to $322.44, and the average sewer bill by about $30, rising from $378.80 in FY24 to $409.12. The annual bill would total around $732.
Additional toilets would rise from about $149 in FY24 to about $161 for water and about $190 in FY24 to about $205 for sewer, totaling about $366 annually. Metered water would rise from $2.16 per cubic foot in FY24 to $2.33 for water and from $4.50 to $4.86 for sewer.
In FY24, water rates rose 12 percent and sewer rates 25 percent.
Marchetti submitted a draft ordinance to adjust the rates on an annual basis, explaining it is "is important for aligning our rates with the actual cost of providing these services, taking into account operational expenses, capital needs, contractual obligations and market goods and services variability."
The ordinance proposes a Rate Adjustment Formula based on the Consumer Price Index Factor (CPIF) and the Operational Stability Factor (OSF) in an attempt to fairly adjust rates, "ensuring our infrastructure can meet the city's needs while considering the impact on our residents."
The CPIF is a way to adjust for inflation or deflation and is calculated by comparing the year-over-year change in February of the CPI index for water and sewer, Marchetti explained, and the OSF aims at ensuring enough funding for future capital upgrades, maintenance, and unexpected challenges with a ten percent cap.
Currently, the city ordinance states that sewer and water charges are established from time to time by the commissioner of public services and utilities and adopted by the City Council. Rates are computed based on the total amount budgeted for sewer works operation and administration plus equipment replacement, capital improvements, depreciation, and projections of water use and wastewater discharge by system users and other necessary factors.
Rates are to be reviewed biennially to ensure they adequately recover these costs and conform with the established user charge requirements.
The proposed ordinance stipulates that rates are established by the commissioner and adjusted by the CPI for All Urban Consumers for Water and Sewer for the month of February, as published by the Bureau of Labor Statistics or its successor agency, plus an OSF.
If necessary, the OSF would be calculated and established by the commissioner or designee with approval by the City Council, considering the need to invest in infrastructure improvements, technology updates, and other capital projects. Notwithstanding the calculated OSF, it would not exceed ten percent.
Rising taxes and water/sewer bills have been a hot topic over the last few years, with many expressing concern for seniors who cannot afford their homes. Councilors have asked for citywide water meters as a part of this effort.
"The importance of this ordinance lies in its ability to provide predictability and stability in water and sewer rates for our residents and businesses. Predictable rates help households and companies plan their finances better, reducing the stress of unexpected increases. They also ensure our utility services can sustainably manage resources, addressing current and future needs without placing undue burden on our community," Marchetti wrote.
"This ordinance is key to the sustainable management of our water and sewer enterprises. It reflects our commitment to transparency, fairness, and responsiveness to the needs of our residents."
Also included in the agenda is a draft five-year agreement between the city and Casella Waste Management for solid waste and recyclables. Marchetti recommended that it be referred to the Committee of the Whole and reported that there would be three public meetings regarding it.
Casella purchased the former trash incinerator facility on Hubbard Avenue from Community Eco Power LLC, which filed for bankruptcy in 2021 and demolished it for redevelopment into a waste transfer station.
The agreement introduces a transition from manual to automated waste and recyclables using "specialized vehicles designed for fully automated curbside collection compatible with the provided 48-gallon carts for waste and recyclables."
If approved, automated collection services will launch in October.
"The proposed agreement includes savings in our budget with $80,000 less than our current allocation for waste management services and includes a commitment by Casella to make the capital investments necessary for the shift towards automated service, including the procurement and distribution of the standardized carts at no additional cost to the city, providing immediate fiscal benefits alongside the long-term savings expected from reduced waste processing fees. Importantly," the contract reads.
It also introduces a structured "pay as you throw" fee system for households requiring additional waste carts.
Tags: sewer rates, water bills,
