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Newburyport council adopts three‑tier water and sewer rates; average bill to rise about 7.5%
Summary
After hours of debate, the Newburyport City Council approved a new three‑tier water and sewer rate structure (order 8‑51) that shifts the first tier down to 2,000 cubic feet and raises water rates about 17% (projected overall average bill increase roughly 7.5%). The vote passed 9–2. The council also approved a reduced procurement bond for meters.
The Newburyport City Council approved a new three‑tier structure for water and sewer rates, effective July 1, 2026, after an extended floor debate about fairness, conservation incentives and how the increases would be used.
Budget and Finance members described the change as a way to rebuild reserves and prepare for major water projects. The new structure reduces the lowest tier from 3,000 to 2,000 cubic feet, adds a third (high‑usage) tier, and would raise the water rate by about 17% under the administration’s model. Councilors and staff said those rate changes translate to an overall average customer bill increase of roughly 7.5% in the coming year.
"The average customer's bill would go up about 7 and a half percent overall," the budget chair summarized during the presentation, noting the figure comes from the model used by the Department of Public Services and finance staff.
Council debate focused on three issues: whether a third tier is the best way to promote conservation, how much the council should bank now for future capital projects (including a potential Lower Artichoke Dam project and water treatment facility), and whether the proposed FY27 assumptions rely on projects that are unlikely to occur in the next 12 months. One councilor urged smoothing increases over several years rather than imposing a large step this year; others argued that building retained earnings now will improve the city’s access to grants or low‑interest loans.
The council rejected a motion to revert to a two‑tier system by roll call (2 yes, 9 no). After voting down other amendments, the council approved the three‑tier order on a roll call of 9 yes and 2 no.
Councilors who opposed the measure said they worried the third tier would expose large commercial or multifamily users to very large bills and that the administration’s five‑year model relied on projects that are not yet funded or scheduled. Supporters said the structure is reversible — the council sets rates annually — and that early reserve building reduces future shock when large capital needs arise.
The council also directed the water ad hoc and finance staff to continue reviewing the multi‑year projected rate path and to work on rate smoothing and project sequencing at upcoming ad hoc meetings.
Next steps: The rate schedule adopted tonight will be implemented for bills beginning July 1, 2026. The water and sewer commission and the ad hoc committee will continue to refine multi‑year forecasts and report back to the council.
