NORTHAMPTON — The average homeowner in the city is expected to pay 210% more in base water rates next fiscal year — as well as a new base sewer rate — as the city seeks to make up for expected lost revenue when the Coca-Cola bottling plant closes later this year.

The Coca-Cola Company announced in 2021 that it would shutter its bottling facility in the Northampton Industrial Park in the summer of 2023, later delaying the closure until the end of the year. The bottling plant pays about 25% of all of the city’s water and sewer enterprise funds, according to the Department of Public Works and Mayor Gina-Louise Sciarra.

“It’s under our watch here where the fizz goes flat,” said Sciarra at a City Council Finance Committee meeting Monday night. “We are working with our state partners to assist with that very big loss, but what we’re focused on here tonight is of course the impact on our water and sewer enterprise [fund].”

To do that, the mayor is proposing an across-the-board increase in quarterly base rate charges for water and the implementation of a new base rate for sewer charges. The increases would take effect at the start of fiscal 2024, or July 1.

An average home typically has either a five-eighths-inch or three-quarter-inch pipe. The proposed plan for the base water rate calls for users of a five-eighth-inch pipe to pay $189.80, or $47.45 a quarter, in fiscal 2024, up from the current rate of $61.16, or $15.29 a quarter — an increase of $128.

Owners of a three-quarter-inch pipe would pay $285, or $71.25 a quarter, in fiscal 2024, up from the current rate of $91.80, or $22.95 a quarter — an increase of $193.20.

Commercial and other property owners which are serviced by larger pipes would also see significant increases next fiscal year.

Additionally, Sciarra is proposing the implementation of a new base sewer rate that would add between $115 and $144 to the average homeowner’s sewer bill next fiscal year. The new base sewer rate charges range from $115.40 a year for a five-eighth-inch pipe, or $28.85 a quarter, or $144.24 a year, or $36.06 a quarter, for a three-quarter-inch pipe.

Combined, an average homeowner will pay either $244 or $337 more next fiscal year in the base rates for water and sewer service.

Usage rates for water and sewer would stay the same next fiscal year. The mayor explained that decision is due to the fact that low-income and senior households are eligible for exemptions in base water rates, meaning they will not be affected by the rate change. The exemptions are made under the state’s Community Preservation Act, as well as under the state’s 41C property tax exemption clause.

“Seniors who own their own home, and also reside in the home they own, and who fall below the area-wide median income limit as defined by the Department of Housing and Urban Development can qualify for the CPA exemption,” said Marc Dautreuil, the city’s assessor, during Monday’s meeting.

Although the city has plans for large water-related projects in coming years, such as water main reconstruction along Main Street and dam rehabilitations, Sciarra said in a statement to the Gazette that the closure of the Coca-Cola plant was the sole reason behind the rate increases.

“We are implementing changes to the base rate charges in the water and sewer enterprises to stabilize their revenue in response to the pending departure of Coca-Cola,” Sciarra said. “If Coke weren’t leaving, we would not be doing this.”

Northampton residents already pay higher water rates than several nearby communities, such as Springfield, Westfield and Easthampton. According to a presentation made at Monday’s meeting by DPW Director Donna LaScaleia, sewer rates now exceed many of those communities as well, with water rates growing even further.

“A lot of folks often ask how much our rates compare to other communities,” she said. “This is sort of a difficult question because every community is different. Every community has different infrastructure, every community has different capital needs, so this is a little bit like comparing apples and oranges.”

Asked during the meeting whether the rate increase would affect the city’s ability to attract new businesses, Sciarra said that the rate increase was the least harmful way to make up for the loss of the Coca-Cola facility.

“We very much would like to get someone into the Coke plant and reuse or repurpose that building, the ideal situation of course would be another bottler or someone who used water and sewer to a similar extent that they do,” she said. “But we have to stabilize this enterprise as well, and I feel this is the most reasonable way we can do this.”

The Northampton City Council held its first reading of the proposed rate increases at its last meeting held March 30. It will look to approve the increase when it convenes again for its next meeting April 13.

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