Water rates set to rise to offset water main replacement project
The Select Board, acting as the water commission, unanimously approved an updated water rate plan for fiscal years 2026 through 2030 with rate increases of 15% for the first four years and a 10% increase in the last year at its meeting on Thursday.
Town Manager Andrew Flanagan presented the modifications to the water main replacement program and water rate plan. He said the overall goal of the plan is to provide high-quality water treatment and distribution services to Andover and North Reading residents and businesses.
There are 40 miles of water mains — unlined and subject to break — still to be replaced in the program.
The plan will maintain the town's water main replacement schedule which targets four miles of annual replacement work. It also prepares for the replacement of the Fish Brook Pumping Station and annual and regular investments in the water treatment plant.
The new plan also adjusts the existing rate plan in order to fund the balance of the Water Enterprise Capital Improvement Plan Program and maintain adequate funding for operations to retain staff. The updated water rate plan will also leverage the 11th year of the North Reading Water Agreement and stabilize rates.
'This is a significant investment in our infrastructure, one of the most important pieces of infrastructure we have in the community,' Select Board Chair Alex Vispoli said.
The modified plan requires the annual investment to increase by $6 million to $12 million in order to fund four miles per year. There is also an annual debt service increase of $750,000. It also adjusted rates from the existing rate plan which would have seen rate increases between 5% to 6% depending on the year through fiscal year 2030.
Department of Public Works Director Carlos Jaquez built in three phases to get all the lines replaced. The phases are based on prioritizing the remaining miles.
The Phase 1 will have the greatest impact on discolored water conditions and covers 10.5 miles over the next five years.
Jaquez said the other two phases address redundancy and resiliency issues throughout the system. Phase 2 fixes another 14.6 miles in six to 10 years while phase three will tackle 14.4 miles in 11 to 15 years.
Flanagan said the town will be able to keep pace at four miles a year with the water rate increases and the payment of $750,000 in debt services annually. About 10% to 11% of the 15% increase is allocated to offset capital expenses.
Vispoli said there are many moving parts to this plan to dig out and construct four miles of new water main yearly. He added there should be an update provided to the board to know how the process is going during the first year it's implemented. Flanagan said the Select Board will know if the town is ahead or behind with the project once or twice a year.
Jaquez said the town has allocated $6 million in bonds for work already planned this past year. When when that number doubles to $12 million in July 2026, the design work will begin for the construction project. He said the town likely won't see any direct impact of construction for another year and a half to two years.
'These water mains do need to be designed before they go out to bid for construction,' Jaquez said.
Flanagan said looking at five-year projections, the plan should be able to fund the Fish Brook Pumping Station replacement project without further action.
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