The rates increases, that took place in July 2011, were primarily in response to large scale and large cost capital projects that the City was required to undertake in conjunction with the City’s Consent Decree with the U.S. EPA, the MassDEP, and the U.S. Department of Justice. Capital projects were required for both the sewer collection system and at the City’s wastewater treatment plant. In addition to required projects, organizational, personnel staffing and equipment procurement was also required, and plans and studies were also required of the City in the Consent Decree.
The rates increases from 2011 was only accounting for the preliminary group of projects, personnel staffing, equipment and studies, and was planned to account for approximately the initial $30,000,000 investment. This preliminary rate increase (2011) was not planned to fund and finance all funding requirements for projects, studies, plans, equipment.
Additional work and projects, beyond initial $30,000,000 investment, are required and are incorporated into the Consent Decree, and will need to be financed. Within the next couple years, the City will evaluate the additional funding requirements, and will conduct a sewer user rate study to properly fund those funding needs, including the DPW Wastewater Division’s annual operational and capital renewal funding needs.