Needham reviews adjusted water and sewer rates amid cost comparisons with local communities

The Water and Sewer Rate Structure Committee of Needham, Massachusetts convened on March 18, 2025, to discuss the town's water and sewer rate structures for the upcoming fiscal year. The meeting focused on revenue targets, current rates, and comparisons with surrounding communities.

The committee began by reviewing the projected revenue needs for water services, estimating a target of approximately $6,956,000. This figure is based on a three-year average forecast, with fixed rate revenue contributing around $690,000. The proposed flat rate for water usage is set at $5.05 per hundred cubic feet.

For sewer services, the committee anticipates a need to raise about $11,100,000, with a proposed flat rate of $12.59. Current rates for both water and sewer were also discussed, highlighting that most domestic water usage falls below the proposed flat rate, particularly in the initial steps of the rate structure.

The committee noted the impact of irrigation water usage on revenue, indicating that fluctuations in irrigation billing could affect overall revenue projections. Comparisons with neighboring communities revealed that Needham's average water bill for 12,000 cubic feet per year is projected to be $1,930, reflecting a 5.9% increase from the previous year. This increase is notably higher than the average increases in surrounding areas, which were reported at 4.7%.

The discussion also touched on the historical context of rate increases, noting that Needham had not raised rates in 2020, while other communities had implemented increases during that period. The committee acknowledged that while Needham's rates are increasing, they remain below the averages of neighboring towns over the past five years.

In conclusion, the meeting underscored the necessity for adjustments in the water and sewer rates to meet revenue targets while also considering the financial impact on residents. The committee plans to continue monitoring and comparing rates with surrounding communities to ensure fair and sustainable pricing for water and sewer services in Needham.