MONTAGUE — The Selectboard unanimously approved a 3% increase to sewer rates in fiscal year 2027 on Monday, bringing the residential and commercial rate to $19.06 per 1,000 gallons, and $20.09 per 1,000 gallons for industrial users.
Montague Clean Water Facility Superintendent Chelsey Little presented the increase to the Selectboard members, who also act as the town sewer commissioners. She explained the change keeps up with the cost of inflation as operating expenses rise.
While this vote was to set the FY27 rate only, Little presented a long-term model to demonstrate what an annual 3% rate increase would look like through 2039. Only one year, fiscal year 2028, is expected to have rates increase by 4%, as debt payments from the facility’s screw pump project start that year.
“To me, I find this to be really great news,” Little said. “We’re not looking at a 70% spike anywhere, or anything weird or crazy like that.”
This annual increase also helps maintain the facility’s Montague Wastewater Fund — a reserve fund used to cover “operations, emergencies and financial obligations,” and helps with long-term planning and fiscal stability, Little explained.
To help contextualize this increase, Little provided examples of actual residential usage for single-family homeowners. For residential ratepayers who use 17,000 gallons in a six-month billing period, this represents a $9.44 net increase from the previous year’s $314.50 bill. For ratepayers using 25,000 gallons, it’s a $13.88 increase from last year’s $462.50 bill.
Outside of questions from the Selectboard, a resident referenced the town’s previous practice of keeping sewer rates low by drawing from retained earnings. Little said it’s a bad practice to use retained earnings from the previous year to keep rates low, as it takes away from available capital spending.
Additionally, Little emphasized her goal to not need large rate increases to cover necessary equipment updates or capital projects.
“I think spreading it out long-term — I know nobody likes an increase — but I think people can be more comfortable and plan for 3%, 4% increases,” Little explained, “instead of running the plant into the ground, causing emergency procurement and not being able to fix any of the capital projects, which eventually, it snowballs.”
