BY THOR JOURGENSEN
LYNN — Ratepayers will not see an increase over the next year thanks to the Water & Sewer Commission’s cost control efforts and debt refinancing.
But the commission’s chairman warned an expensive project on the horizon could hike rates as early as next year.
William Trahant Sr. and four fellow commissioners continue to examine how to meet federal mandates to reduce or eliminate partially treated sewage discharges into the ocean from the city’s waste treatment plant.
With estimates to end the discharges through a project called Combined Sewer Overflow approaching $130 million, Trahant said rates could rise next year.
“We should be able to hold this year, maybe next, but what is coming up in the future?” Trahant asked.
Commission CEO David Travers on Friday said he and other commission executives will recommend the five commissioners do not increase the current $9.98 per 100 cubic feet rate for water and sewer service when they discuss Water and Sewer spending in May and June.
“We’re looking to hold the line on rates,” Travers said.
Rates increased 2.5 percent from $9.74 per 100 cubic feet last spring. The average Lynn resident spends $699 annually for about 7,000 cubic feet of water. A family of four using 10,000 cubic feet pays about $1,000 a year for water and sewer.
Travers said the commission has succeeded over the last year in keeping major costs, including health insurance, pensions and worker’s compensation, stable without significant increases. He said capital debt financing for major projects undertaken by the commission also saved money.
Previous debt refinancing helped reduce the amount of interest Water & Sewer pays to finance expensive improvement projects, even though the commission spent or plans to spend $9 million on three projects during the last year and into this year.
Those improvements include a new cover for the Parkland Avenue reservoir, switching chlorine treatment systems at the Parkland Avenue water plant and on Commercial Street from chlorine gas to liquid chlorine and upgrade the waste treatment plant incinerator.
Water & Sewer has spent millions of dollars since the 1990s creating a separate storm drain and sewer pipe network to comply with federal orders reducing ocean discharges. Commissioners were divided last year over how much should be spent on CSO work, with David Ellis and Peter Capano advocating for CSO plans encompassing a solution to end West Lynn street flooding.
Former commissioner Wayne Lozzi urged the commission to adopt a relatively inexpensive CSO solution, but he left the commission this year. Travers said CSO planning will involve discussions with federal officials.
“We’re still waiting to enter into negotiations with the Environmental Protection Agency on what the next phase will be,” he said.
Officials will review the budget for the upcoming year with commissioners on May 6 and a public rate hearing is scheduled for June 8.
Thor Jourgensen can be reached at [email protected].