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The Winchester Select Board unanimously approved an 8% water and sewer rate increase for fiscal year 2026, pending Town Meeting approval in late April.
The board opted for a moderate approach among several options presented during a March 10 public hearing.
The approved increase would raise the average residential user’s quarterly bill from $250.35 to $267.58, a $17.23 increase per quarter or about $69 annually. Irrigation users will see their bills rise from $937.12 to $1,009.29 quarterly.
Even with all the rate increases, officials said Winchester still falls below most MWRA communities when it comes to the average residential water and sewer bill.
The Abrahams Group, the town’s water and sewer consultant, presented several rate scenarios including 7%, 8%, 9% and 8.5% options. Each plan offered different long-term projections, with some showing steeper increases in subsequent years.
Select Board Chair Michelle Prior initially favored a 7% increase, but expressed concern about a projected 13.5% jump for fiscal year 2027 under that scenario.
“If we had a very good revenue year, and some retained earnings, why would we have to go up 12% or even 9% this next year?” Prior asked during the earlier Feb. 24 meeting where rate increases were first discussed.
Matt Abrahams, a representative from the Abrahams Group, a financial consulting firm that provided an analysis of Winchester’s water and sewer rates, cautioned against banking on unpredictable revenue surpluses.
“If you do have that rainy summer, you won’t necessarily bring in as much revenue,” he explained.
While some board members preferred the consistency of a level 8.5% increase for five consecutive years, Select Board member Anthea Brady suggested the 8% option as a compromise.
Select Board member Michael Bettencourt emphasized the difficulty in projecting rate needs over multiple years. He understood the difficulty in compiling a five-year rate plan when the weather changes every year. Therefore, he favored a lighter increase on the front end, according to meeting coverage.
The rate increases will help fund essential infrastructure projects while maintaining adequate retained earnings in the water and sewer enterprise fund. Capital projects totaling approximately $790,000 are planned through fiscal year 2030, with only one already funded.
Major projects requiring debt financing include $600,000 for leadneck removal, $1.5 million for Woodside Sewerage PS, and $800,000 for Cambridge Street water main lining in FY26. The town also needs $150,000 in FY26 for MS4 permit compliance, with costs projected to rise to $200,000 in subsequent years.
Despite the public hearing designation, no residents spoke during the session. The recommended increase now moves to Town Meeting for final approval in late April.
The board also discussed potential changes to the service charge structure based on meter size. Currently, all users pay a flat $35 quarterly fee, but a proposed tiered structure would charge higher fees for larger meters, potentially generating an additional $170,000 in annual revenue.
However, due to uncertainty about the number and size of meters in town, this change was deferred until after completion of the water meter replacement program.
Another option considered was implementing rate increases based on usage tiers, with lower increases for conservation-minded residents and steeper hikes for heavy users. Under this model, Tier 1 residential users might see only a 4.5% increase while Tier 3 users could face a 12.5% increase.
The board ultimately settled on the flat 8% increase for FY26, with projections showing a 10% increase for FY27 followed by annual 8% increases through FY30. Weather conditions will determine whether future increases match these projections.
