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DANVERS — The town plans to hike water and sewer rates against the backdrop of a $20.6 million water treatment plant upgrade and conservation measures that have caused revenues to dry up.
"We are looking at a significant increase in the water rate," said Department of Public Works Director David Lane, who said preliminary figures for fiscal 2011 water and sewer rates were not available Friday.
The Water and Sewer Commissioners will hold a public hearing on rates tomorrow at 7 p.m. in the Toomey Room, Town Hall, 1 Sylvan St.
Given the need to borrow to pay for the water treatment plant project, with residential and commercial ratepayers footing the bill, the town wants to raise rates this year to build up a reserve fund to pay off debt.
Building up reserves now will help pay for the project in the peak debt years of 2015 through 2017, Lane said.
It's a strategy the town used to pay off debt on the Holten Richmond Middle School project, and also its share of the nearly $80 million renovation of Danvers High, Lane said.
To offset the cost to ratepayers, the town has applied for 2 percent loans under the State Revolving Fund program, which supplies cities and towns with low-interest loans for water and wastewater infrastructure improvements. The town is also seeking grants.
The project to upgrade the Vernon C. Russell Water Treatment Plant, on the shores of Middleton Pond on Lake Street in Middleton, will likely begin next spring, Lane said.
Danvers supplies water to Middleton, so ratepayers there will also see significant increases.
The other thing driving rates is that customers are using less water because of conservation, and because it has been raining more. However, the water division's operational costs have remained the same year to year.
When the town sells less water, that tends to drive up the rate, Lane said.
Speaking of conservation measures, the town on June 21 went to a Level 4 drought condition, meaning outdoor lawn and garden watering with sprinklers is allowed only on Tuesdays and Saturdays between 7 and 10 p.m.
2010 rates
Rates are tiered to promote conservation. The less a customer uses, the lower the rate. These rates will change come July 1.
Residential Water Rate
The town measures water and sewer in a unit called "hundred cubic feet." The current rates, listed here, will increase after a hearing tomorrow night.
First 20 hundred cubic feet (HCF)/quarter: $3.98/HCF
20 to 24 HCF/quarter: $4.45/HCF
Greater than 24 HCF/quarter: $5.88/HCF
Base charge/quarter: $8.34
Residential Sewer Rate
First 20 HCF/quarter: $5.49/HCF
20 to 24 HCF/quarter: $5.67/HCF
Greater than 24 HCF/quarter: $6.76/HCF
Source: Town of Danvers Water Division
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