Water Sewer FY26 Rate Proposal presentation 6.11.25 — File 25-1103

Water & Sewer FY2026 Rate Proposal City Council File ID 25-1103 June 12, 2025

Agenda • Water & Sewer Enterprise Expenses • Operations & Maintenance • Administration & Billing • Improvements for FY26 • Capital Investment Plan • Long Term Financial Plan & FY26 Revenue Requirement • Current Financial Status & FY26 Rate Proposal • Affordability & Fairness • Rate Payer Assistance Program – Previous Conclusions & Next Steps • Proposed Billing Structure Changes 2

Water & Sewer Enterprise Expenses What do the rates pay for next year? 3

Water & Sewer Operations & Maintenance Critical work to deliver safe drinking water, safely handle sewage and stormwater, and provide on-demand fire protection 4

Delivering Vital Life-Sustaining Services 24 hours a day, 365 days a year Quality Water Safe Sewer Services Fire Suppression 5

Overseeing Our Water & Sewer System • 116 miles of water mains • 183 miles of sewer mains • 4,800+ manholes • 3,600+ catch basins • 1,600+ fire hydrants • 29,000+ water & sewer connections 6

Sustaining Aging Infrastructure 7 • Aging Infrastructure: Many of our underground water pipes date back to the late 1800s, significantly increasing the risk of failures and service disruptions. • Rising Maintenance Costs: There is growing concern about the escalating cost of maintaining and repairing these aging systems. • Increased Material Costs: The cost of pipe and fittings required for repairs continues to rise, further straining maintenance budgets and long-term sustainability.

Snapshot of Select Water Services FY25 8 • Emergency Responses: • Addressed 59 urgent issues to ensure public health and safety. • Non-Emergency Maintenance: • Completed 140 tasks (curb stop resets, hydrant and valve replacements) to maintain system reliability. • Water Quality Monitoring: • Collected 84 water samples monthly to ensure safe, compliant drinking water. • Lead Sampling: • Collected 20 samples from homes and 2 from schools/daycares annually to monitor and reduce lead exposure.

Snapshot of Select Sewer Operations FY25 • Responded to over 244 Q-alert/311 request in the last year • Over 2,500 Dig safe requests • Over 46 sewer back-ups • 102 Catch basin issues • 73 Manhole cover matters • Hydraulicly clean 7,759 ft of sewer line • Secured property on 508 Columbia St to set up staging area to offload catch basin tailings for catch basin cleaning to be disposed of 9

Administration and Billing Critical support work to operate a public utility 10

Administration & Billing 11

Managing Administration & Billing 12 ~51,000 bills generated each year ~67,000 bills per year after FY27 start of quarterly billing ~16,000 accounts & water meters Two Principal Clerks Ratio = 1 Full-Time Clerk per 8,000 accounts

Growing Admin Needs 13 • Increased Accounts: Real estate market & condo conversions are driving new accounts • New Stormwater Enterprise Fund: requires management • Final Bill Requests: produced daily for real estate property sales • Research & bill dispute: capacity needs to match demand • WaterScope: great service, but reports require follow-up coordination (leaks, etc.) • General admin: Rising account maintenance, meter tracking, document management needs • Modernization & Service Improvements: intensive and critical efforts require staff management/time investment

Advancing Key Projects & Improvements 14 800+ fiscal tier adjustments to lower retroactive bill costs Meter Replacement Project: 94% complete All paper meter files/records converted to e-format Integrating intake activities with 311 QAlert System

Advancing Key Projects & Improvements 15 Created new MUNIS Utility Billing Manual Weekly MUNIS Technical Training Sessions Bi-weekly meetings w/ Customer Service & Billing Teams Task Resolution Tracker (TRT) Issue Resolution System

Operational Improvements for FY26 16

Billing & Admin Staffing Plan 17 • Proposing 4 positions: • Principal Clerk: Utility Billing Operations Support (Union) • Principal Clerk: Front Office/Customer Service (Union) • Service Operations Manager • Utility Billing Manager

Field Staffing plan ✓SMEU Unit B contract executed • Targeted recruitment strategies: • Mass Municipal Association, Mass Water Works, NE Water Works, and others • Targeted W&S Hiring Working Group: • W&S, Human Resources, IAM, DPW, Auditing, Mayor’s Office, Comms, IGA • Reviewing DPWs training & development • Mayor Summer Jobs workforce: • They support us now, we hope to attract them as hires in the future 18

Leadership Staffing Plan • W&S, Finance, IAM, Mayor's Office • All involved in new Director search and evaluation • All in support of additional positions • Filling positions now will put new Director in a position to succeed • HR is supporting this top priority need to both fill positions and recruit a new Director • W&S positions are exempt from temporary hiring freeze (both due to essential priority and separate funding via Enterprise fund) 19

Capital Investment Plan Primary driver for future rate increases 20

Aging infrastructure • 90% pipes are over 50 years old • 70% are older than 100 years 21 2796 17 [phone removed] 136 272 934 Unknown 1800 to 1880 1880 to 1900 1900 to 1920 1920 to 1940 1940 to 1960 1960 to 1980 1980 to present Water Line Pipe Segments Built [phone removed] 694 915 18 153 64 Unknown 1860 to 1880 1880 to 1900 1900 to 1920 1920 to 1940 1940 to 1960 1960 to 1980 1980 to present Sewer & Drain Line Pipe Segments Built

Guiding Principles for CIP Project Selection • Fulfill Regulatory Requirements • Comply with Administrative Orders and Permits • Mitigate CSOs • Improve Level of Service • Increase capacity to deliver water • Decrease sewer system backups • Mitigate Flooding • Add capacity and storage to reduce surface flooding • Reduce Risk • Rehabilitate or replace pipes before they fail • Prioritize pipes with greatest impact • Add water valves and sewer manholes to improve operations & maintenance 22

Sewer debt service projection 23 $- $5 $10 $15 $20 $25 $30 $35 $40 Millions Existing Annual Debt Service Future Annual Debt Service to Support CIP

Morrison Ave & MROSS Projects • Preliminary designs complete • Final design initiation requires W&S rate proposal approval 24

Long-range rate projections Avoid year-to-year swings and future rate shock 25

Rate model and dashboard 26

Operating fund target & Revenues vs. Expenses 27 • Keep fund balance near but above revenue requirement target projection, create ability to cash-fund capital projects • Align revenues with expenses

Stabilization Fund 28 Goal: Maintain Stabilization Fund balance for emergencies

Debt service coverage, Debt service to Revenue ratio 29 Goal: Manage debt service within targets to maintain bond rating and keep capital projects affordable

FY2026 Revenue Requirement 30

FY26 Water Budget 31 MWRA Assessment, 11,051,015, 50% Debt Service, 3,498,209, 16% Capital Outlay, 3,920,000, 18% Personal Services, 1,694,814, 7% Ordinary Maintenance, 1,051,100, 5% Other, 965,923, 4% Fixed Costs 66% Fixed costs make up between 66-84% of the annual budget

FY26 Sewer Budget 32 MWRA Assessment, 18,481,236 , 56% Capital Outlay, 4,375,000 , 13% Debt Service, 5,030,439 , 15% Personal Services, 2,322,392 , 7% Ordinary Maintenance, 1,469,600 , 5% Other, 1,136,466 , 4% Fixed Costs 71% Fixed costs make up between 71%-84% of the annual budget

FY2026 Revenue Requirements: Water 33 Fees $147,000 1% Investment Income $283,096 1% Penalties and Interest $15,427 0% Other Revenue $594,300 3% Base Charge $1,200,000 6% Usage $19,199,000 89% Fees Investment Income Penalties and Interest Other Revenue Base Charge Usage

FY2026 Revenue Requirements: Sewer 34 Investment Income $570,584 2% Penalties and Interest $18,768 0% Other Revenue $377,859 1% Base Charge $1,283,692 4% Usage $27,922,622 93% Investment Income Penalties and Interest Other Revenue Base Charge Usage

Impact of no rate increases in FY2025 Proposal of 9.5% for Water and 5% for Sewer failed to pass, creating dire financial circumstances for FY2026 36

Water FY25 – 9.5% Proposed Increase • Projected 10% increase for FY26 & FY27; Reduce thereafter • Revenue & expenses balanced • Build up cash to offset future debt 37

Water FY26 – Financials without increase • Stabilization reduced by $1.7M in FY24 to minimum level in FY25 • Debt coverage and operating funds below targets • Requires 40% rate hike in FY27 to balance 38

Sewer FY25 – 5% Proposed Increase • Projected 15% increase for FY26 & FY27; reduce thereafter • Revenue & expenses balanced • Build up cash to offset future debt 39

Sewer FY26 – Financials without increase • Stabilization reduced to minimum level • Debt coverage, Debt/Revenue & Operating Fund below targets • Requires 20% rate hike in FY27 to balance 40

FY23 to FY26+ Fixed Cost Increase 41 $17,021,568 $17,759,770 $17,561,095 $18,481,236 $19,405,298 $1,971,248 $3,600,126 $5,030,440 $3,464,262 $3,637,475 $9,471,778 $9,500,557 $10,694,450 $11,051,015 $11,603,566 $1,817,696 $2,184,846 $3,498,209 $3,491,062 $3,665,615 FY23 FY24 FY25 FY26 FY27 WATER Debt Service WATER MWRA ASSESSMENT SEWER Debt Service SEWER MWRA ASSESSMENT

FY2026 Proposal 42

Water FY26 – 18% increase • Projected 18% for FY27, 10% for FY28 & FY29; Reduce thereafter • $1.5M taken from Stabilization; Revenue & expenses balanced • No cash buildup to offset future debt, which becomes problematic 43

Sewer FY26 – 12% increase • Projected 12% increase for FY27 & FY28; reduce thereafter • Revenue & expenses balanced • Build up cash to offset future debt 44

Improving Affordability 45

Rate Payer Assistance Program 46

Rate Payer Assistance • Affordability program efforts thus far stymied by legal constraints • Massachusetts law prohibits many financial-means-test subsidies for utilities • Utility billing and Enterprise Funds must be based on utility use • Still committed to evaluating affordability programs • Will remain a priority for Department and new Director • Item ID 25-1069 – I/I Fee will increase revenue collected from developers 47

Billing Structure Changes Improve fairness and reduce burden on small residential users 48

Billing Structure Changes • Align base rate scaling with industry standards for fairness • Current structure collects too little revenue from large users; therefore, 1-, 2-, & 3-Family users are paying more than their fair share • Reduce volumetric tiers from 5 to 3 and shift brackets to simplify billing & increase fairness • Current structure puts 2- & 3-Family users into higher tier; therefore, they are paying more than their fair share • Introduce charges based on impervious area to offset sewer bills based on water use to increase fairness • Current structure ignores the cost of stormwater runoff; therefore, residential users are paying more than their fair share • Details provided in Presentation Appendix 49

Resulting net changes to bills 50

Bill Impacts – Residential Alternative Structure (Tri-Annual Bills) Water Use Meter Current FY 26 $ Change % Change Average Condo 15 5/8 $ 112.85 $ 134.99 $ 22.14 20% Average Single Family 18 5/8 $ 139.49 $ 162.37 $ 22.88 16% Average Two-Family 30 5/8 $ 246.05 $ 282.84 $ 36.79 15% Average Three-Family 42 5/8 $ 352.61 $ 414.26 $ 61.65 17% Average 8-unit Apartment Building 110 1 $ 974.51 $ 1,188.97 $ 214.46 22% Sewer Use Meter Current FY 26 $ Change % Change Average Condo 15 5/8 $ 224.62 $ 236.97 $ 12.35 5% Average Single Family 18 5/8 $ 272.53 $ 283.87 $ 11.34 4% Average Two-Family 30 5/8 $ 464.17 $ 490.21 $ 26.04 6% Average Three-Family 42 5/8 $ 655.81 $ 715.32 $ 59.51 9% Average 8-unit Apartment Building 110 1 $ 1,775.31 $ 2,050.92 $ 275.61 16% Combined Use Meter Current FY 26 $ Change % Change Average Condo 15 5/8 $ 337.47 $ 371.96 $ 34.49 10% Average Single Family 18 5/8 $ 412.02 $ 446.24 $ 34.22 8% Average Two-Family 30 5/8 $ 710.22 $ 773.05 $ 62.83 9% Average Three-Family 42 5/8 $ 1,008.42 $ 1,129.58 $ 121.16 12% Average 8-unit Apartment Building 110 1 $ 2,749.82 $ 3,239.89 $ 490.07 18%

Bill Impacts – Residential (Tri-Annual Bills) Residential Current 7/1/2025 % Change 1/1/2026 % Change Single Family Water 157 $ 181 $ 15% 181 $ 0% 5/8" Meter Sewer 304 $ 315 $ 4% 230 $ -27% Annual Use 60 CCF Stormwater 173 $ Total 462 $ 496 $ 7% 583 $ 18% Three Family Water 397 $ 469 $ 18% 469 $ 0% 5/8" Meter Sewer 736 $ 809 $ 10% 571 $ -29% Annual Use 47 CCF Stormwater 111 $ Total 1,133 $ 1,278 $ 13% 1,150 $ -10% Large Condo Water 67,133 $ 79,585 $ 19% 79,585 $ 0% 4" Meter Sewer 125,140 $ 136,536 $ 9% 94,675 $ -31% Annual Use 7,204.5 CCF Stormwater 7,138 $ Total 192,274 $ 216,121 $ 12% 181,398 $ -16%

FY26 Rate Proposal Summary • Water volumetric rate increase: 18% on average • Sewer volumetric rate increase: 12% on average • Reduction in number of residential volumetric tiers and increase in base charge scaling to reduce burden on most residential customers and align with actual costs • Mid-year addition of Stormwater fee to allow for property owner control, reduce Sewer charges, and align with actual costs 53

Water & Sewer FY2026 Rate Proposal Appendix City Council File ID 25-1103 June 12, 2025 Additional details

Changes to Billing Structure 56

Objectives & Components Align bills with costs 57

Balancing Objectives S O M E R V I L L E 2 0 2 1 R A T E D E S I G N 58 Simplicity Proportionality Revenue Requirement Industry Standards

Elements of Rates S O M E R V I L L E 2 0 2 1 R A T E D E S I G N 59 Charge Type Base Charge Volume Charge

Elements of Rates- Base Charge S O M E R V I L L E 2 0 2 1 R A T E D E S I G N 60 Charge Type Base Charge How is it Applied Fixed amount per meter Rationale Many of Utilities’ costs are fixed (ex: debt) Fixed revenues protect the utility from changes in demand Bond rating agencies measure fixed cost recovery Industry best practice

Options for Scaling Base Charge S O M E R V I L L E 2 0 2 1 R A T E D E S I G N 61 0 50 100 150 200 5/8" 3/4" 1" 1 1/2" 2" 3" 4" 6" 8" Current AWWA Average Use • Represents cost that the utility incurs in standing ready to serve customers when their demands occur 24/7 • Cost should scale by meter size 5/8” 3/4” 1” 1.5” 2” 3” 4” $20.00 $20.00 $20.00 $40.00 $64.00 $120.00 $200.00 1.0 1.0 1.0 2.0 3.2 6.0 10.0 Meter Size Base Fee Scaling 6” $400.00 20.0 8” $400.00 20.0 Proportionality

Elements of Rates- Volume Charge S O M E R V I L L E 2 0 2 1 R A T E D E S I G N 62 Charge Type Base Charge How is it Applied Fixed amount per meter Rationale Convey conservation messaging Encouraged by regulation Allows customers to control their bill Key measure of system utilization Volume Charge Based on use in CCF

Volumetric Charge Considerations S O M E R V I L L E 2 0 2 1 R A T E D E S I G N 63 Tier Volume CCF Rate 1 0-8 $4.20 2 9-13 $4.68 3 14-67 $6.74 4 68-133 $7.06 5 >133 $7.34 Tier Volume CCF Rate 1 0-10 $4.68 2 11-100 $6.74 3 101-200 $7.06 4 >200 $7.34 Commercial Bi-Monthly Residential Tri-Annual Volume Charge • Considering the treatment of multi-unit properties with a single meter • Analyzing the tier breakpoints for residential, using the most current census data and volumetric trends • Evaluating the appropriateness of commercial tiers in light of industry standards

Residential Tiers S O M E R V I L L E 2 0 2 1 R A T E D E S I G N 64 Currently Five Tri-Annual Tiers in Place Tier Volume CCF Rate 1 0-8 $4.20 2 9-13 $4.68 3 14-67 $6.74 4 68-133 $7.06 5 >133 $7.34 80% of Volume 20.6% 11.8% 49.3% 6.5% 11.8% 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Residential Billed Volume by Tier (CCF) Current Simplicity

Multi-Unit Residential Pays More S O M E R V I L L E 2 0 2 1 R A T E D E S I G N 65 Proportionality 3 Unit Total Tri-Annual water Bill: $243 $268 3 Dwelling Units and one meter 3 Dwelling Units and 3 meters 10.5% higher 3 Unit Total Tri-Annual Use CCF: 39 Tiers as currently constructed can do not account for multiple units, resulting in higher bills for multiple units 39 Meter Size: 5/8”(3) 5/8”(1)

Proposed changes Align with industry standard and increase fairness 66

Base Charges – Water Meter Size Current Scaling Base Charge - Residential (Tri-Annual) Base Charge - Commercial (Bi-Monthly) 5/8" 1.0 $20 $10 3/4" 1.0 $20 $10 1" 1.0 $20 $10 1 1/2" 2.0 $40 $20 2" 3.2 $64 $32 3" 6.0 $120 $60 4" 10.0 $200 $100 6" 20.0 $400 $200 8" 20.0 $400 $200 AWWA Scalin g Base Charge - Residential (Tri-Annual) Base Charge - Commercial (Bi-Monthly) Base Charge - All Classes (Quarterly) 1.0 $20 $10 $15 1.5 $30 $15 $22.50 2.5 $50 $25 $37.50 5.0 $100 $50 $75 8.0 $160 $80 $120 21.75 $435 $217.50 $326.25 37.5 $750 $375 $562.5 80.0 $1,600 $800 $1,200 140.0 $2,800 $1,400 $2,100 AWWA scaling would increase water base charge revenues by $240,000 per year Current Revised

Base Charges – Sewer Meter Size Current Scaling Base Charge - Residential (Tri-Annual) Base Charge - Commercial (Bi-Monthly) 5/8" 1.0 $40 $20 3/4" 1.0 $40 $20 1" 1.0 $40 $20 1 1/2" 2.0 $80 $40 2" 3.2 $128 $64 3" 6.0 $240 $120 4" 10.0 $400 $200 6" 20.0 $800 $800 8" 20.0 $800 $800 AWWA Scaling Base Charge - Residential (Tri-Annual) Base Charge - Commercial (Bi-Monthly) Base Charge - All Classes (Quarterly) 1.0 $40 $20 $30 1.5 $60 $30 $45 2.5 $100 $50 $75 5.0 $200 $100 $150 8.0 $320 $160 $240 21.75 $870 $435 $653 37.5 $1,500 $750 $1,125 80.0 $3,200 $1,600 $2,400 140.0 $5,600 $2,800 $4,200 AWWA scaling would increase sewer base charge revenues by $475,000 per year Current Revised

Usage Rates – Revised Residential Water and Sewer Tier Usage Water Sewer 1 0-12 $7.30 $12.51 2 13-24 $9.13 $15.63 3 Over 24 $10.95 $18.76 Tier Usage Water Sewer 1 0-9 $7.30 $12.51 2 10-18 $9.13 $15.63 3 Over 18 $10.95 $18.76 Tri-Annual Billing Quarterly Billing Tier 1 Tier 2 Tier 3 All Additional Use Assumes 18% water rate revenue increase and 12% sewer revenue increase in FY26 1 Small Household Typical Indoor Usage 1 Description Value 1 People per Household 1.10 1 Typical Indoor Use (Gallons per Capita per Day) 58.6 1 Typical Essential Domestic Use (CCF/ Tri-Annualy) 12 2 Average Household Typical Indoor Usage 2 Description Value 2 People per Household 2.19 2 Typical Indoor Use (Gallons per Capita per Day) 58.6 2 Typical Essential Domestic Use (CCF/ Tri-Annualy) 24

Usage Rates - Commercial Water and Sewer Tier Usage Water Rate Sewer Rate 1 0-13 $6.17 $12.52 2 14-67 $8.88 $15.97 3 68-133 $9.30 $16.75 4 Over 133 $9.67 $17.34 Tier Usage Water Rate Sewer Rate 1 0-13 $7.28 $14.02 2 14-67 $10.48 $17.89 3 68-133 $10.97 $18.76 4 Over 133 $11.41 $19.42 Tier Usage Water Rate Sewer Rate 1 0-19 $7.28 $14.02 2 20-100 $10.48 $17.89 3 101-200 $10.97 $18.76 4 Over 200 $11.41 $19.42 Bi-Monthly Billing Quarterly Billing Assumes 18% water rate revenue increase and 12% sewer revenue increase in FY26 Recommend maintain current commercial water and sewer usage rate structure (4-Tiers)

Additional changes to billing coming mid-FY2026 Stormwater runoff based on impervious area 71

Current bill • Water • Base Rate • Meter size • Volumetric Rate • Metered water use • Sewer • Base Rate • Meter size • Volumetric Rate • Metered water use • . 72

Current bill • Water • Base Rate • Meter size • Volumetric Rate • Metered water use • Sewer • Base Rate • Meter size • Volumetric Rate • Metered water use • . 73 Proposed bill • Water • Base Rate • Meter size • Volumetric Rate • Metered water use • Sewer • Base Rate • Meter size • Volumetric Rate • Metered water use • Stormwater • Impervious area

Current bill • Water • Base Rate • Meter size • Volumetric Rate • Metered water use • Sewer • Base Rate • Meter size • Volumetric Rate • Metered water use • . 74 Proposed bill • Water • Base Rate • Meter size • Volumetric Rate • Metered water use • Sewer • Base Rate • Meter size • Volumetric Rate • Metered water use • Stormwater • Impervious area • Revenue neutral • Sum of citywide bills same a current • Individual customers shift based on usage • Pay less if small impervious area • Pay more if large impervious area

Why make the change? To align revenue with costs, and to create credits that reduce capital improvement costs 75

Why make the change? Align revenue with actual costs, and provide credits that drive down the cost of capital improvements 76

Stormwater not related to water use • Target water use • ~ five 2-family homes • Target impervious area • ~ 20 times that of those 5 properties combined 77

78 78 S O M E R V I L L E – S T O R M W A T E R U T I L I T Y O V E R V I E W Residential: 58% Non-Residential: 31% Other: 11% Residential 58% Non- residential 31% Other 11% Residential 90% Non- residential 8.3% Other 1.5% Parcel distribution Impervious area distribution

79 Stormwater Fee Credits ▪Stormwater fee credit is an ongoing reduction in the fee charged to a qualifying property in return qualifying stormwater management ▪Credit is recognition that onsite/offsite stormwater management reduces the City’s stormwater expenditures ▪Credits encourage property owners to proactively manage their stormwater impact S O M E R V I L L E – S T O R M W A T E R U T I L I T Y O V E R V I E W

We know on-site management works • Engineering Driveway & Paving Permit • https://s3.amazonaws.com/somervillema-live/s3fs-public/driveway- paving-permits-brochure.pdf • Engineering Site Plan Permit • Infiltrate/detain first ¾-inch runoff • Reduce peak rate from 10-year storm to mimic 2-year storm • https://s3.amazonaws.com/somervillema-live/s3fs-public/engineering- site-permit-rules-regs.pdf • Green Stormwater Infiltration Guidance • https://s3.amazonaws.com/somervillema-live/s3fs-public/gsi-planning- guidance.pdf 80

81 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 - 5,000 10,000 15,000 20,000 25,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Water & Sewer Construction Metrics Large Diameter Sewer/Drain >24" (LF) Small Diameter Sewer/Drain <12"-24" (LF) Sewer/Drain Lining (LF) Pump Station Projects (Productivity) Water Main Replacement (LF) Water Main Lining (LF) Water Service Replacement (LF) Total Enterprise Fund Construction Costs ($)

82 Stormwater Fees 0 100 200 300 400 500 600 700 - 300 600 900 1,200 1,500 1,800 2,100 2,400 2,700 3,000 3,300 3,600 3,900 4,200 4,500 4,800 5,100 5,400 5,700 6,000 6,300 6,600 6,900 7,200 7,500 7,800 8,100 8,400 8,700 9,000 9,300 9,600 9,900 10,200 10,500 10,800 11,100 11,400 11,700 12,000 12,300 12,600 12,900 13,200 13,500 13,800 14,100 14,400 14,700 15,000 # of Parcels Impervious Area Tier 1 Tier 2 Tier 3 Tri-Annual Fee: Fee Dependent on Measured Area ($70 per 1,000 square feet of impervious) $34 $111 $173 $236 $304 Fees based on FY25 stormwater revenue requirements S O M E R V I L L E – S T O R M W A T E R U T I L I T Y O V E R V I E W Monthly Fee: $9 $28 $43 $59 $76

CSO reduction from on-site management 83 0 5 10 15 20 25 30 35 0% 25% 50% 75% 100% Million Gallons CSO per Year Percent of Private Properties Capturing the First 3/4 inches of Rain 2050 Typical Year CSO Discharge Volume SOM001A SOM007A

Thank you 84