Needham anticipates significant water and sewer rate increases through 2028

The Water and Sewer Rate Structure Committee of Needham, Massachusetts, convened on March 18, 2025, to discuss the ongoing challenges and projected increases in water and sewer rates. The meeting highlighted the necessity for rate adjustments due to rising operational costs and changes in water consumption patterns.

Committee members noted that the town had already implemented a rate increase last year, with expectations for several more years of higher rates than previously experienced. The average annual expense increase for the water and sewer department has been approximately 5.5%, driven by factors such as energy costs, tariffs on materials, and significant capital projects. These projects include major sewer line replacements, which are projected to cost around $13 million and will impact the town's debt budget through 2028.

The committee expressed concern over stagnant customer growth, particularly at the Unida Crossing, which has not generated the anticipated increase in water usage. This stagnation, coupled with rising assessments from the Massachusetts Water Resources Authority (MWRA), is expected to further elevate rates. The MWRA's budget for the upcoming fiscal year indicates a potential increase of 3.5% to 5%, which will directly affect Needham's water and sewer rates.

Additionally, the committee discussed the implications of a water ban that is set to begin in April. This ban is expected to reduce irrigation water usage, which could lead to decreased revenue since irrigation rates are higher than domestic rates. The committee acknowledged that the impact of this ban would need to be factored into future rate proposals.

In conclusion, the committee's discussions underscored the financial pressures facing Needham's water and sewer services, with anticipated rate increases driven by rising costs, stagnant customer growth, and regulatory changes. The committee plans to present these findings and recommendations to the select board in the coming months, as they seek to address the financial sustainability of the town's water and sewer infrastructure.