Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utility Rates topic
No spam. Unsubscribe anytime.
Council amends and tables proposed water and sewer rate schedule, adopts 10% FY25 increase only
Summary
After staff presented a multi‑year rate plan, the council amended the measure to adopt a 10% water and a 10% sewer increase for fiscal 2025 only and then voted to table the item pending a new public hearing; CAFO said reserves were used to balance the fund in recent years and warned of budget impacts if delay continues.
The Methuen City Council took up a proposed water and sewer rate schedule and, amid questions about reserve usage and timing, amended the measure to adopt a single‑year increase before tabling the remainder for further public process.
Staff presented a rate analysis tied to the city’s enterprise fund shortfalls. The CAFO said the enterprise fund had relied on reserves in recent years — roughly $1.5–2.7 million in the most recent fiscal years — and that delaying the rate increase would lower anticipated revenue available for FY25 budget assumptions and possibly require mid‑year budget adjustments.
Councilor DeZaglio introduced and successfully moved a narrow amendment to limit the adoption to a 10% water and 10% sewer increase in fiscal year 2025 only (the amendment passed by roll call). Several councilors asked for more granular data about reserves, outstanding account liens and how much revenue the city has been deferring or collecting through liens. CAFO staff said they would provide more detailed impact analyses.
After debate, a motion to table the amended resolution carried; the council instructed staff to re‑advertise a public hearing and return the measure for a subsequent vote within the 30‑day statutory window if possible. Councilors stressed the need for clear data before committing to multi‑year rate changes.
Ending: The council directed staff to prepare additional financial detail and to schedule another public hearing; the amended single‑year increase will be revisited as part of the next formal vote sequence if staff and the council proceed.
