ORDER-2023-97 : Proposed FY24 Sewer Rates

Transcript (~15 min @ 12:45)

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▶ 12:32 Leila Migliorelli: So we have a council meeting starting at 7 45. We have a lot of other orders on our appropriations and oversight committee agenda. We can dig into sewer rates or adjourn and head into the full council meeting. I'm inclined to maybe move ahead with one. Keep going. Okay. Order 2023 dash 97. Proposed FY 24 sewer rates. Um, tonight we have Elena Pro Ellis, d p w Director here to speak on this order. Welcome.

▶ 13:10 Speaker 6: This is specific to sewer, correct? Correct. Okay. Um, so we submitted a memo dated May 31st that you should all have, um, in IQ M two and it summarizes the proposed water and sewer rate increases for fiscal year 24. Um, the sewer rate increase, uh, Well in our memo we've combined them and it's a combined 3.7% increase. Um, the sewer is a little bit less than that and the water is a little bit more, and I can get the exact figures if anybody is interested. But the, um, the proposed sewer rate for the tier one is $12 and 25 cents per hundred cubic feet. And for tier two is 14, excuse me, 1543 per hundred cubic feet. Uh, the sewer meter fees, the base fees go up in the same proportion that we've always had them, which is to be, to represent 10% of the revenue collected for the year comes from base fees. Um, and so the standard base fee for a meter of the typical household would be $26 and 38 cents per quarter.

▶ 14:24 Speaker 1: Thank you. Questions from the council?

▶ 14:34 Maya Jamaleddine: Anyone? Vice chair, Jamal? Thank you. Um, thank you for the explanation. Definitely would like to see the more accurate, um, the breakdown. Sure. Um, sent and attached to, uh, public record. Um,

▶ 14:53 Maya Jamaleddine: would you mind repeating how much each household will notice increase?

▶ 15:00 Speaker 6: Sure. I have, um, we also attached a summary sheet. Let me just find it.

▶ 15:27 Speaker 1: Is that the rate increase,

▶ 15:29 Speaker 6: Uh, document? It is. There's a, there's a sheet that Donna Cardello put together that's a, um, a summary of the impact to the average user and Jim has it here. Um, okay. So the average household, we consider the average household to be at household using 1800 cubic feet per quarter. Um, the FY 23 average bill in that case was $363 and 48 cents. The average FY 24 bill would be 3 76 97 for a difference of $13 and 49 cents per bill, which is the 3.7%. Okay.

▶ 16:09 Maya Jamaleddine: And are not sure if this is a valid question, but any population in Mars will, will be, will be able to get any kind of break in from that increase?

▶ 16:21 Speaker 6: Yeah. So we have a senior discount and we also have a low income discount. And I believe there are two different levels of the low income discount.

▶ 16:28 Maya Jamaleddine: Do they have to go through, uh, a process, uh, if they are already in that discount, do they have to go to another process to reapply or No?

▶ 16:37 Speaker 6: Uh, it used to be that you needed to resubmit every year because the, like the senior discount is also dependent on water use. Mm-hmm. So if you, um, if you use an excessive amount of water, then you no longer qualify for the senior discount. So typically, um, everybody needs to reapply with Lisa Patterson down in the engineering water sewer billing office. Um, I know they get a lot of the folks through the senior fair as well. Mm-hmm. Mm-hmm. Um, a lot of folks re up there, but typically she's also, um, she's great Lisa, and she's all over it. And so if she sees somebody who still qualifies and they haven't submitted paperwork, she usually reaches out as well.

▶ 17:17 Maya Jamaleddine: And, um, are these information, um, I'm assuming it is just to mention for the public, uh, available for social worker just in case any of our residents reach out, they will be able

▶ 17:30 Speaker 6: To, yeah, it's all available online and they can also, anyone who's listening at home, um, can reach Lisa directly. She's at 7 8 1 9 7 9 4 1 7 5. That's her direct number, so. Okay. And she'd be happy to help anyone who needs it.

▶ 17:45 Maya Jamaleddine: Okay. Just to name, uh, we know for sure with the inflation and everything that's going on this, regardless how much is the, um, increase. It's gonna be a burden for some of our residents and we hope that we can support in any of the resources that are available. Thank you. Thank you.

▶ 18:06 Speaker 1: Councilor Gepe and then Councilor Williams.

▶ 18:08 Mark Garipay: Thank you Madam Chair. Um, just a quick question. You had talked about the average household, um, rate is 16 or 1800 cubic feet. Is that, that what you

▶ 18:17 Speaker 6: 1800.

▶ 18:18 Mark Garipay: 1800. Yeah. And how do we base the average? Is it the prior year, prior five year prior 10? How do we base that

▶ 18:24 Speaker 6: Average? So it's, it's fairly consistent. So Donna analyzes the data every year, um, and we update our rate model every year. But it's been, that 1800 has been fairly consistent for pretty much the whole time that I've worked here.

▶ 18:37 Mark Garipay: Okay. So we didn't see, um, thought we might have saw an increase during C O I D, um, during covid with people at home a lot more, but we haven't seen that. Okay.

▶ 18:46 Speaker 6: Yeah, that is, that is true. But we haven't seen, you know, it hasn't made a big impact to the average user. Obviously the, um, the summertime usage for some folks is way out of whack with the rest of the year because they water their loan lawns. But, um, 1800 is our overall average. Thank you. And I also have the breakdown if you're interested in, um, water versus sewer. So I actually misspoke the water rate change is, uh, 2.22, actually it's 2.25% and the sewer rate change is 4% even.

▶ 19:29 Speaker 1: Okay. Count. Uh, are you all set councilor repay or any Further? I'm all set. I'm sorry. Okay. That's okay. Um, councilor Williams,

▶ 19:37 Ryan Williams: I I wanted to ask you about the water relief programs because I saw in my email about question Counselor Stewart had about these programs and I wanted to ask how or if they're coordinated. But first I wanted to ask if, you know, off the top of your head what the low income threshold is for low income, uh, rate program, which you might not. And it's maybe an unfair question.

▶ 19:58 Speaker 6: Yeah. I don't have it off the top of my head, but I have a feeling Jim's gonna find it in about 30 seconds. Okay. Okay. Um, it's right here. Yeah. So, um, low income appears to be gross income of 35,000 or less for single and 40,000 or less if married. Um,

▶ 20:19 Speaker 6: And then, um, senior discount, um, you have to be 65 years of age and use less than 6,250 cubic feet of water per year.

▶ 20:29 Ryan Williams: Right. So we're talking about the water, sewer and trash discount abatement form website. Yeah. Okay. Okay. Cool. Very good. Um, thank you very much. Cause I actually had a resident reach out about that last week. Okay. And now I know exactly what to tell them. Um, the Boston ABCD Water Bill Relief program that I assume was spoken about in council, um, I wasn't here last week. It's like a, it's like a program where you can get, um, you can apply for money to help pay your bill. And I'm just curious as to whether these requests are going through the same person or being crosschecked.

▶ 21:03 Speaker 6: Uh, so the, the city did receive a, a chunk of money that was, um, it was all coordinated through Catherine Armada. Yeah. Um, our treasurer collector. So I think she was coordinating that program, working with Lisa Patterson to identify which accounts to apply the money to.

▶ 21:25 Ryan Williams: Yeah, I mean, it's, it's great. It's actually great to have multiple programs because a lot of times when you're dealing with these abatement programs, people will qualify for one and it's very little and they need more help and, you know, and so sometimes if there's an extra waste of cash, it's great to hear that we have multiple programs. So that's it. That's what I wanted to know. Thank you. Thank You

▶ 21:45 Jen Grigoraitis: President Greg. Thank you Madam Chair. Thank you for being here tonight. I just wanted to follow up with more questions on the, specifically the senior, um, abatement. So you're saying that our average user is 1800 cubic feet per quarter? Yes. Which works out to about 7,200 cubic feet per year. But the senior discount is only for anyone who uses, um, 6,250 cubic feet, which is a pretty, that's like well below the average user. So how did we get to that number?

▶ 22:11 Speaker 6: I believe that's calculated based on 65 gallons per capita per day, which is the d e p threshold of what they like to see. Um, people in general stay under that's considered like wise water usage, um,

▶ 22:26 Speaker 7: Per household or per person?

▶ 22:27 Speaker 6: Per person. So I think that's how we calculated it. I don't know if we, I don't recall if we used an average, um, household size or if we used two people. Um, but I'm fairly sure the number originates from that. So let's see.

▶ 22:55 Speaker 6: Yeah, that comes up to 63 43. So, um, if I did the math right with the conversion from gallons to cubic feet, so I think that's how we derive that number.

▶ 23:05 Jen Grigoraitis: Okay. So I'm not gonna able to convert gallons to cubic feet in my head. So it's, you're seven, 7.4 65 gallons per person per day equals 63

▶ 23:14 Speaker 6: Equals 63 43.

▶ 23:16 Jen Grigoraitis: So, so that's just one person for two people, for two people.

▶ 23:17 Speaker 6: I just did it

▶ 23:19 Jen Grigoraitis: For two people. And do we ever, I mean the reality is we have seniors who have mul, you know, multiple generations living in the home that they own. Do we ever have any application process or, um, anything, you know, to consider if you can, if you're between 6,250 and 7,200 still being able to qualify for the discount?

▶ 23:37 Speaker 6: Um, we haven't, to my knowledge, done that. Although I do think Lisa is reasonable with people. If someone's had the discount every year and then they have 6,400 gallons the following year, I don't think she throws them out of the program that first year. Um, if there's an upward trend where they're using more and more water, she certainly would take them out of the program. But, um, you know, she makes a reasonable judgment with each application. Um, so, you know, I'm not sure exactly how strict we are. We do not have a formal program for people who are in that, uh, 62, 50 to 7,000

▶ 24:13 Jen Grigoraitis: Category. Okay. So it's sort of, it's at her kind of discretion and she's very helpful. I'm not in any way trying to imply she isn't just, but the, you know, there's kind of a gap there between typical usage per household and then what we're allowing for a discount for seniors.

▶ 24:25 Speaker 6: Yeah. And she really has rarely had complaints though from people who, you know, thought they should qualify and don't. I think a lot of, a lot of people, the, the real difference is outdoor watering. So if you're an elderly couple who doesn't water, you're gonna probably meet the discount. If you are an elderly couple who has a huge lush lawn that you're watering every day, you're not gonna meet it. And

▶ 24:48 Jen Grigoraitis: Or if you're an elderly couple with, you know, three grandkids living at home, you may not make the discount either. I just think it could be an opportunity. And I, I saw Stacy nodding in the background maybe to think about if there's some more kind of, um, you know, consistent parameters we could put in place for that. However few people do or don't fall into that kind of in between area.

▶ 25:08 Speaker 6: Yeah. We have also tried to open it up. We have a condo discount too. That was one of the complaints we used to get frequently. And I think ever since we instituted that the complaints have really gone down of people who feel they should qualify and don't.

▶ 25:20 Speaker 7: Thank you. Thank you Madam Chair,

▶ 25:22 Speaker 1: Councilor Stewart.

▶ 25:24 Robb Stewart: Thank you Madam Chair. I'll make a motion to recommend, uh, this order for the full council. Second

▶ 25:29 Leila Migliorelli: Motion to recommend, uh, order 2023 dash 97 made by Councilor Stewart, seconded by Councilor Ella on discussion

▶ 25:43 Robb Stewart: Councilor Stewart. One clarification is this 2023 dash 97 or 2023 dash 98? Cuz we're talking water and 2020 threes dash 97 is sewer. Uh,

▶ 25:52 Speaker 1: It's, we, we are, this is voting on sewer, but it is com The, um, director poi ess combined the memo to discuss both. So not unlike other conversations we've had, I think we're discussing both in one, but the vote will be on sewer and then we'll take a second vote on water. Okay.

▶ 26:11 Leila Migliorelli: Um, so this motion's on discussion. I actually just have a question just to clarify the, um, it just simply for the public, what is the, what is the rationale and difference between the percentage increase for water and sewer? Like, what are the factors that go into why those two are different?

▶ 26:26 Speaker 6: So they're completely separate enterprise funds and our rate model, um, has completely separate calculations for water and for sewer. So we input the operating budget, the indirect costs, the debt model, um, for all of our borrowing and, um, then any offsets from the discounts from various things. And then the model calculates, um, how much revenue we need and then what our customer base is and what what the usage is projected to be and pops out a rate. So the operating budget, the debt, the indirect costs, they're all different for water versus sewer. So each year the, the increase is different from one account to the other.

▶ 27:08 Speaker 1: Okay. Thank you.

▶ 27:12 Speaker 1: Seeing no further questions. Mr. Clerk,

▶ 27:16 Speaker 2: Vice Chair Jamal Dean?

▶ 27:17 Speaker 1: Yes.

▶ 27:19 Speaker 2: Councilor Sunnel? Yes. Councilor Eccles? Yes. Councilor Gepe? Yes. Councilor Stewart? Yes. Councilor Chetty? Yes. Councilor Williams? Yes. President Vardas? Yes. And Chair Melli? Yes. That's nine. Yes. Unanimous.

▶ 27:33 Leila Migliorelli: This order will be brought to the full counsel, um, this evening. As we note, some of these orders are already on our agenda for tonight, so we would be able to vote this through if the council wishes to. So thank you for being here. Okay. And now we will take a vote on order. 2023 dash 98.

▶ 27:49 Speaker 3: Motion to recommend. Second Counsel.

▶ 27:51 Speaker 1: Motion recommend made by Councillor Eccles, seconded by Councillor ecs. Anyone on discussion? See none. Mr. Clerk,

▶ 27:58 Speaker 2: Vice Chair Jamal Dean? Yes. Councilor Sin? Yes. Councilor Eccles? Yes. Councilor Gpe? Yes. Councilor Stewart? Yes. Councilor Chetty? Yes. Councilor Williams? Yes. President Greg? Yes. And Chair Elli? Yes. That's nine. Yes.