Sewer Rates Going Up 12 Percent

The almost balked Wednesday night at the proposed 12 percent increase in sewer rates for next year. But after being told they would jeopardize the town's bond rating if they didn't raise the rates, the board voted unanimously to approve the new rates.

The water rate will remain the same at $6.40 per hundred cubic feet, as it has for the last two years. The sewer rates will rise to $5.60 per hundred cubic feet. A cubic feet equals 7.48 gallons.

"This is a tough pill to swallow," said Selectman David Van Dam.

Selectman Glenn Kessler agreed, "This is a no win situation."

When Selectman Jill Sullivan moved to approve the new water and sewer rates, no other selectmen would second the motion until Town Administrator Thomas Younger and Director of Public Works Gino Cresta explained that the increase was needed to replenish the reserve fund for the sewer system that was tapped to pay for the damages caused by the broken discharge pipe.

That accident cost about $2 million. The damage to the interior of the station was covered by an insurance policy. But the damage to the station's exterior was only covered by an insurance policy that had a smaller coverage limit. The town is suing the contractor and the engineer to recover about $500,000 it paid to fix the exterior.

The selectmen were optimistic that the town will win the lawsuit. "We may get some money back," Cresta said.

But in the interim, the sewer reserve fund has been reduced from $630,000 to $120,000, Younger said. That amount is not enough to keep the bond rating agency from lowering the town's bond rating, which would cost the town more money in future debt service.

The new rates will be reflected on the next quarterly water and sewer bills, which are scheduled to be sent out in mid-August.

The Selectmen were concerned that the town may face other increases in sewer rates as the city of Lynn is raising the rates the town pays for solid waste treatment.