ATHOL — Athol’s Selectboard held a public hearing at its meeting last Tuesday, July 20, prior to setting the rates to be paid by municipal water and sewer users in the coming year.
Town Manager Shaun Suhoski began the hearing by pointing out that over the past few fiscal years, revenues have barely remained ahead of costs. He also noted that rates were held steady last year as a result of the pandemic.
“I think what we need to do to be responsible to the folks that use water and the folks who flush their toilets, is to make sure we have a rate structure that keeps pace with expenses,” said Suhoski. “With the hold-off on rates last year (due to COVID-19), we really feel the need to come before you and talk about the situation, and the revenue in this department.”
Public Works Director Dick Kilhart began his presentation with a comparison of Athol’s water and sewer rates with those of several nearby communities. At present, Athol ratepayers pay $4.46 for every 100 cubic feet (748 gallons) of water used and $7.14 for every 100 cf in sewer usage. The cost for Winchendon ratepayers is $5.63 and $9.18 for water and sewer, respectively. For Templeton, the rates are $8.60 and $8.80, and in Orange the rates stand at $3.90 and $9.70. Rates in Monson stand at $5.60 for water and a flat $91.75 per quarter.
Kilhart also provided information indicating that the water system currently generates $1.2 million in revenue and carries $100,000 in debt, while those same figures for the sewer system are $1.2 million and $350,000, respectively. He noted that the sewer department debt is higher because, in 2008, the town committed to spending $8 million to upgrade the wastewater treatment plant.
“By being an enterprise (fund) for both the water and wastewater systems here in Athol, and many other communities,” said Kilhart, “you kind of agree that you not only maintain those services, budgets, and debt of those departments, but you also maintain the capital behind those delivery systems and those collection systems.”
Kilhart also suggested the board consider changing from a quarterly billing system to a monthly system. While the overall cost would remain the same, he pointed out, ratepayers would receive smaller bills, albeit on a monthly basis.
“If you went to a monthly billing,” asked board member Stephen Raymond, “is that going to increase the administrative costs?”
“We are looking at that,” Kilhart replied, “but I don’t think we’re quite ready to go there. I almost would suggest that we kind of transition into every two months for residential. That would mean six bills a year. That would still drop the bill ratepayers receive.”
The board then voted to have Kilhart explore in more detail the feasibility of moving to a monthly billing system.
In response to a question from board member Alan Dodge, Kilhart confirmed that Athol is selling water to residents of the Tully section of Orange, also known as Drewsville, at Athol’s rate of $4.46 per 100 cf. However, the town of Orange is billing those same residents $5.95/100 cf.
Board Chair Rebecca Bialecki said, “To anyone watching on AOTV, please make sure that every person in Tully gets the word that they’re being overcharged for their water, and it’s not because it’s Athol’s fault.”
Dodge then asked if Athol could charge Orange a higher rate, to which Kilhart replied that Athol could, in fact, establish a tiered rate for different users. The board voted to revisit the issue once the rates for Athol residents had been established.
In the end, the Selectboard voted unanimously to set water and sewer rates for the next three years, beginning with the current fiscal year and ending in FY24. The increase for FY22 was set at 8 percent, resulting in a rate of $4.82 per 100cf for water, and $7.71 for sewer. Rates will then increase by 7 percent in FY23 ($5.16/$8.25) and 6 percent in FY24 ($5.47/48.25).
Dodge then moved that Kilhart be instructed to return to the board with a recommendation for an out-of-town water rate, a motion seconded by board member Mitch Grosky. The proposal was approved without dissent.
Kilhart told the Athol Daily News he has already started looking into the issue and should be reporting back to the Selectboard relatively soon.
Greg Vine can be reached at gvineadn@gmail.com