City Council is poised to set annual water rates for the next 10 years that would include annual increases of 5%.

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The governing body introduced an ordinance (O-48-21) at its Nov. 8 meeting that will come up for a public hearing and final approval at its next meeting, on Monday at 7 p.m. 8 p.m.

UPDATED, Dec. 14: City Council last night unanimously (9-0) approved the ordinance with no comments or questions from City Council members or the public.

Chief Financial Officer Frank Ruggiero told City Council during its November meeting that the increases are part of a the renewal of a management contract with Suez Water for the city’s water system. “It’s very important the the utility maintains its self-liquidating status for and pays for its own expenses,” Ruggiero said.

The city’s utilities (water, sewer, parking) are self-liquidating, meaning they generate revenue to cover expenses, outside of the municipal budget.

City Council approved a new 20-year services agreement with Suez Water in early 2017. The new services agreement with Suez replaced the final two years of the previous 20-year lease, which was set to expire in 2019. Under the terms of the lease, the city retains ownership of the water treatment facility on Westfield Avenue and the right to set water rates with any water utility surplus channeled back to the city budget.

In response to a question from Councilman At-Large James Baker at the November meeting, Ruggiero noted a senior citizen discount of a minimum bill of $5 per quarter for 1,100 cubic feet or less — if they qualify for a state senior citizen tax deduction. The minimum bill on a monthly basis for the average homeowner with a standard 5/8 water meter is $18.72, which works out to $224.64 per year. Baker was the only council member to abstain on the ordinance at the November meeting.

New water rates take effect Jan. 1 of each year, starting in 2022 under the latest ordinance, with minimum charges increasingly accordingly. Over the course rate schedule, metered rates would rise to $96.25 per 1,000 cubic feet (kcf) by 2031,  about 55% higher than $62.04 set for 2022.

The last time City Council approved annual water rates was in 2017, setting rates for a five-year period from 2017 through 2021, with similar 5% increases each year. Prior to that, City Council set water rates in 2013 via ordinance (O-39-13) for the five-year period  from 2013 through 2018, also with 5% increases baked in annually.

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