As we approach the one-year mark of COVID-19 lockdowns, communities are beginning to see the effects these changes will have on their revenue streams. Smaller communities like Franklin and Concord have reported increased residential water usage with stay-at-home orders, resulting in higher revenue than budgeted, while larger communities like Framingham have seen gaps in their budget due to low commercial water usage.
The Framingham Patch reported on a January 26 Community Hour Meeting, where Mary Ellen Kelly, City Chief Financial Officer explained that, “Framingham has been using the water and sewer department’s yearly surplus to offset rate hikes. There was no rate hike in 2020, and increases in previous years have been between 2 and 4 percent. When the pandemic hit, businesses shut down, severely cutting into water and sewer revenue, leaving the department in a deficit — and with no savings to cover it.”
Diane Conners, Framingham DPW Financial Director, joined MCWRS’ February Member Chat to discuss these issues in more detail. One of the overarching themes of the conversation was the need to identify and resolve systemic problems in rate systems across the Commonwealth in order to make water utilities less prone to future disruptions. One suggestion is shifting to a monthly billing system in place of a quarterly system, which has the benefit of a more consistent revenue stream and the ability to better track trends in water usage. Monthly billing does have added costs that need to be considered before making a change. Additionally, Framingham is considering the transition to a base rate.
The massive infrastructure failures in Texas brought increased awareness to the critical role water and wastewater systems play in our daily lives. Perhaps a crisis of this magnitude coupled with the COVID-19 pandemic and its message about hand washing and sanitation will reinforce the need for federal, state and local investment in water infrastructure. Better yet, this renewed emphasis on water as a factor in protecting public health may help dissuade further regulatory and legislative efforts to constrain water and wastewater systems which make it more difficult for utility managers to do their jobs. As always, MCWRS encourages members to contact their representatives and advocate for responsible and reasonable policy and regulatory measures and funding that support local communities grappling with these issues.
Massachusetts Coalition for Water Resources Stewardship 