ITEM FILE PHOTO
Peabody Mayor Edward A. Bettencourt Jr. and the City Council reached an agreement Thursday night on a water and sewer rate increase.
By ADAM SWIFT
PEABODY — The mayor and the City Council have reached a compromise on a water and sewer rate hike.
Effective July 1, residents will see a 5 percent hike in their water and sewer bills. That increase, the first in a decade, will help the city complete some infrastructure projects, according to Mayor Edward A. Bettencourt Jr.
While the average homeowner can expect to see a rate increase just short of $38, the hike is half of what was proposed by the mayor earlier this month. A 10 percent increase was requested to help cover the costs of using Massachusetts Water Resources Authority (MWRA) water following a fire at the city’s Coolidge Avenue Treatment Plant earlier this year.
But after listening to suggestions from several City Councilors, Bettencourt said the plan is now to use the 5 percent increase to help pay for city-wide infrastructure costs and to use free cash to cover the estimated $1.2-million shortfall when the MWRA sends its assessment bill next spring.
“There were good suggestions at the last council meeting, and I’m comfortable with the 5 percent increase as originally budgeted and put before the council,” said the mayor.
Insurance money will cover the cost of rebuilding the plant, as well as $1 million of the estimated $2.2 million the city will owe the MWRA by the time a temporary plant is up and running in the fall. Bettencourt said he will come before the council in the spring to request the use of stabilization funds, also known as free cash, to cover the remainder of the assessment.
“I’m glad we are reducing the increase from 10 percent to 5 percent,” said Ward 1 Councilor Jon Turco. “I was reluctant to support 10 percent, but 5 percent is more palatable.”
The hike will help pay for improvements to aging infrastructure throughout the city. The mayor said there have been several areas hit with water and sewer main breaks in recent months, including along Lowell Street in West Peabody.
“There is a need for infrastructure projects, and the 5 percent increase will help close that gap,” said Bettencourt.
Even with the approved hike, Peabody’s water and sewer rates will remain lower than those in surrounding North Shore communities, according to the mayor.