Town Manager Terence Delehanty reports that the Town of Winthrop will increase water and sewer rates by $3 per cubic foot beginning with the current billing cycle.
The increase from $16.90 per cubic foot to $19.90 is the result of multiple factors, including a projected revenue deficit, an increase in fees from the Massachusetts Water Resources Authority (MWRA) and debt service on capital improvement projects and purchases.
"We always approach any rate adjustment in a serious and deliberative manner. The Town of Winthrop takes the needs of its citizens to heart. This rate change is needed due to many factors, including vital improvements to our water system that ensure we are providing the best possible water for our the drinking, cooking, and cleaning needs of all," Delehanty said.
Breakdown of Rate Adjustment
- $1 rate increase needed to offset a projected $479,000 deficit caused by a lack of rate increases in previous years.
- 57 cent increase comes from an increase in the MWRA assessment, which is a mandatory, direct cost to the Town of Winthrop.
- 92 cent increase comes from the repayment of debts on capital improvement projects, including projects in Winthrop Center and Winthrop Shore Drive.
- 26 cents to fulfill debt obligations on capital expenses, including the purchase of a new dump truck.
- 17 cents used to pay for increases in Water and Sewer Division costs including rising insurance rates and the rising cost of supplies over time
- 8 cents will fund a cost of living adjustment, resulting in a total of $38,000 in additional salary costs shared among all Water and Sewer Division employees.
Residents should expect to see the increase on their May 1 water and sewer bills.