SOUTH HADLEY — Sewer bills will be rising later this year after the Select Board voted last week to increase the annual rate by $80, from $280 to $360, for single-family homes and units.
The new rate will be reflected in the biannual October billing, with an increase of $40.
The Select Board will discuss abatements at its next meeting. Residents who qualify are abated $30 per year, which will likely be increased, Town Administrator Lisa Wong said.
According to information provided by Wong to the board, the last increase, in 2020, raised the rate from $265 to $280 and was the first hike since 2011. Rates have not kept up with inflation, Wong said, and there are capital projects planned for coming years.
For the 2024 fiscal year, the town is proposing $310,000 in capital expenditures, including $250,000 on a comprehensive wastewater management plan. These will need approval by Town Meeting in May.
Major capital spending is also projected for future years, including $9.5 million in needs for the Main Street pumping station, and Wong said rates will need to be increased again within a year or two to cover that.
While the larger capital needs will be covered through borrowing, rates will need to be raised to cover the debt service payments on those loans.
The rate for the sewer use fee is voted yearly by the Select Board and is determined based on the type of service. The rate is figured on an EDU (Equivalent Dwelling Unit) basis.
A single-family home is charged for 1 EDU. Multifamily homes are charged 1 EDU for each unit.
Commercial and industrial sewer bills are based on usage, with 1 EDU equal to 10,000 cubic feet of water.