Water and Sewer Public Hearing Info Session FY25 — File 24-0913

WATER & SEWER INFORMATION SESSION AND PUBLIC HEARING MAYOR KATJANA BALLANTYNE MAY 29, 2024 Demetrios G. Vidalis P.E., SHEP Director of Water & Sewer Water & Sewer Department 1

2 AGENDA 6 to 6:30 PM • Meter Replacement Project Update • Presentation of Rate Proposal 6:30 to 8 PM • Public Hearing • Accepting public testimony for the record

3 UPDATE ON CITY-WIDE METER REPLACEMENT PROGRAM • 90% of the City’s meters have been replaced. • Less than 6% of ratepayers have seen a significant increase due to catch-up reads from low estimates. • The Water & Sewer Department is currently reviewing adjusting some bills by recalculating charges to align with previous lower rates.

4 SIGN UP TODAY! Please sign up for WaterScope to receive real-time information and alerts on your water/sewer usage. Contact Mass Installation, Inc. at [phone removed] or email [email removed] with the subject: WaterScope Opt-In Also, please, keep your property’s contact information up to date to ensure you receive updates and information from the Water and Sewer Department

5 WATERSCOPE EXAMPLE

6 WATER & SEWER SERVICES Public Health • Clean water to your home or business • Sanitary sewer and stormwater service for all Somerville properties Fire Suppression • Sufficient water pressure and volume for fire suppression and firefighting. Administration • Customer Service • Account Management • Billing

7 WATER & SEWER INFRASTRUCTURE 116 miles of water mains 183 miles of sewer mains 29,000+ water & sewer connections 4,800+ manholes 1,600+ fire hydrants 3,600+ catch basins

9 WHERE DO YOUR PAYMENTS GO? Massachusetts Water Resources Authority Fees Operational Costs Ongoing Maintenance and Repairs Infrastructure Improvements Water & Sewer Bill Payments

10 COST FACTORS TO FY25 RATE RECOMMENDATION INCREASE IN MWRA FEES $500M FOR NEEDED INFRASTRUCTURE UPGRADE AND REPLACEMENT INFLATION AND HIGHER INTEREST RATES REGULATORY REQUIREMENTS AND ONGOING MAINTENANCE -2% MWRA Sewer Assessment Cost for FY25 +13% MWRA Water Assessment Cost FY25

MWRA 53% Capital Investments 16% Debt Service 16% Personnel 7% Maintainence 8% MWRA Capital Investments Debt Service Personnel Maintainence 11 WATER & SEWER DEPT FY25 BUDGET

12 HOW MUCH WILL THE CITY PAY THE MWRA? WATER 50% Cost of water supply from MWRA: $10.7M SEWER 55% Cost of wastewater treatment by MWRA: $17.7M

13 IMPROVEMENT PROJECTS FY25 Sewer Projects Amount Project Status Spring Hill Sewer Separation $1.5M Near Completion Sewer System Evaluation Study $1.5M Annual Program Poplar St Pump Station $110M In Construction Morrison Ave Flood Relief TBD In Design Mystic River Outfall and Sewer Separation $2.7M In Design Sewer Improvements $5M Annual Program Water Projects Amount Project Status Lead Service Line Replacement $200K Annual Program Spring Hill $200K Near Completion City Wide Meter Replacement $200K Near Completion Water Improvements $7.3M Annual Program

15 AGING INFRASTRUCTURE

16 WHAT ARE WE WORKING TO PREVENT?

17 FLOODING BEFORE PROJECT IMPLEMENTATION 10-year, 24-hour storm event (total rainfall = 5.16 inches)

18 FLOODING AFTER PROJECT IMPLEMENTATION 10-year, 24-hour storm event (total rainfall = 5.16 inches)

LEAD SERVICE LINE REPLACEMENT 21 • We have been hard at work to identify and replace lead lines from the over 15,500 services in the city. • Since 2019, we have replaced 267 lead service lines, exceeding our annual goal of 44 replacements per year. • We are ahead of industry standard for our region. • For more information, you can check www.somervillema.gov/leadservice.

22 PROPOSED RATE ADJUSTMENTS FOR FISCAL YEAR 2025 Base Charges No Change Water Rates Sewer Rates 5% Increase Average Increase 6% 9.5% Increase

23 PROPOSED RATE INCREASE IMPACTS Total Units per Bill (in CCF) FY 2024 Annually FY 2025 Annually $ Change/Year (FY25 – FY24) Annual $ Change/ Household % Change 15 (average condo unit) $1,012 $1,067 $54 $54 5% 18 (average 1-family home) $1,236 $1,305 $69 $69 6% 30 (average 2-family home) $2,131 $2,259 $128 $64 6% 42 (average 3-family home) $3,025 $3,212 $187 $62 6% 110 (average 8-unit building) $8,249 $8,782 $532 $66 6% Total Change in Annual Costs for Various Billing Units (including base & volumetric charges)

24 FY25 WATER AND SEWER PROPOSED RESIDENTIAL RATES Tier Tier Range (per CCF) Water Sewer Combined Discount Rate 0-8 $6.06 $11.82 $17.88 Tier 1 9-13 $6.76 $13.15 $19.91 Tier 2 14-67 $9.72 $16.77 $26.49 Tier 3 68-133 $10.18 $17.59 $27.77 Tier 4 Over 133 $10.59 $18.21 $28.80 FY25 Residential Volumetric Charges ($/Billing Unit)

25 FY25 WATER AND SEWER PROPOSED COMMERCIAL RATES Tier Tier Range (per CCF) Water Sewer Combined Tier 1 0-13 $6.76 $13.15 $19.91 Tier 2 14-67 $9.72 $16.77 $26.49 Tier 3 68-133 $10.18 $17.59 $27.77 Tier 4 Over 133 $10.59 $18.21 $28.80 FY25 Commercial Volumetric Charges ($/Billing Unit)

26 RETAIL VS TAP: 1 GALLON BOTTLE 1 Gallon 46 Gallons

27 RETAIL VS TAP: 16 OUNCE BOTTLE 1 Gallon 368 Gallons

28 FINANCIAL ASSISTANCE AND RESOURCES AVAILABLE FOR RESIDENTS • Continuation of policy of no water shut-offs for non-payment • Exemptions for seniors and others (e.g., clauses 17D and 41C) • Visit the Assessor’s office page on the City Website https://www.somervillema.gov/de partments/finance/assessing • We are also currently working with a consultant on additional affordability options and policies that can help our ratepayers starting as soon as Jan, 2025

29 PUBLIC HEARING • In person: Please write your name on the sign-up form • Online: Please write your name in the Q&A box • Those in person will testify first, followed by those online • Please say your name and address before providing testimony • 2 Minutes per testimony