HADLEY — The Select Board this week approved a modest increase in water rates, but postponed a decision on adopting a significant jump in the rates for sewer users.
At the Select Board meeting Wednesday, members voted 3-2, with John Waskiewicz and David J. Fill II against, to authorize a 2.5 percent increase in the water rates, though this was only half of the increase requested by Department of Public Works Superintendent Chris Okafor.
Based on the approved increase, rather than a 5 percent adjustment this year, the average residential water user will pay about $14 more annually, rather than close to $28 more.
Select Board members indicated they would plan for a similar 2.5 percent increase next year, which Chairman Christian Stanley said would be right around the annual cost of living adjustment.
Even though the increase was scaled back, Waskiewicz said he was concerned about continuing to tax residents at an unsustainable level.
Fill agreed. “I think people need a break,” Fill said.
“The feedback I’m getting from residents is that they’re getting hit from every direction with increased rates,” Fill said.
Board member Joyce Chunglo said residents are already seeing their taxes jump to support three building projects for the town, including the new senior center, library and fire substation, though she joined members Stanley and Molly Keegan in approving the new rates.
Had both water and sewer rates been approved as recommended, which is what the Select Board did in May 2018, it would have added nearly $100 to the $809 bill for an average resident whose home is connected to both municipal services.
On sewer rates, the board was more unified that it couldn’t immediately adopt the 15 percent rate increases that Okafor presented, instead putting off a decision until its meeting on June 12.
Though the additional money that would come to sewer is needed for both operations and infrastructure, Keegan said officials should examine whether existing debt related to sewer projects could be funded through general taxation. This would still have an effect on residents, she said, but wouldn’t be a “huge hit” to property taxes.
Town Administrator David Nixon explained that it is possible to take existing sewer debt, which amounts to about $135,000 for the next seven to 10 years, and transfer it to the property taxes.
Nixon added that the increases in sewer rates are also about making the operations sustainable and that the Select Board previously adopted a best-practices policy that uses enterprise funds, rather than general taxation, to support maintenance and improvements for the sewer and water system, as well as Hadley Media’s operations.
Waskiewicz said he wants to see an analysis in advance of the June meeting on how the tax rate would be affected, as well as an accompanying list of projects.
Because of long-term issues with the sewer system, Building Commissioner Timothy Neyhart said town planners might want to consider pursuing in-fill zoning, which he described as adding developable sites to already sewered areas. Adjusting zoning and having some small-scale uses on currently undevelopable parcels would bring in new users without having to expand the infrastructure, he said.
Chunglo broached the idea of revisiting the Community Preservation Act surcharge and whether that could be reduced from the current 3 percent, on a temporary basis, to give relief to taxpayers. She noted that Town Meeting was informed that account has more than $2.03 million available for spending on open space preservation, housing and recreation and protection of historic assets, which might be sufficient for a few years.
If a reduction in the CPA surcharge were to happen, Nixon said a hearing would be needed.
The board also agreed to increase the septic disposal rates from 11 cents per gallon to 18 cents per gallon for the first 1,000 gallons for any user.
Scott Merzbach can be reached at smerzbach@gazettenet.com.
