Worcester subcommittee approves DPW water, sewer rate increases to take effect July 1

The Worcester Public Works Subcommittee voted to recommend Department of Public Works (DPW) proposals to raise the city’s water and sewer rates, accepting a water rate of $3.85 per 100 cubic feet and a sewer rate of $9.49 per 100 cubic feet to take effect July 1, 2025.

The vote followed a roughly two-hour discussion at the subcommittee meeting on May 13, during which DPW staff and the city auditor outlined how much of the sewer increase stems from the Upper Blackstone Clean Water Abatement Facility assessment and how city reserves and recent spending affect rate-setting.

DPW Commissioner John Westerling told the subcommittee the recommended rates were presented in a May 13 memo to the city manager and explained the lifeline rate for eligible elderly homeowners will remain $170 per year and out-of-town water users would pay $4.12 per 100 cubic feet. “The impact of the proposed rate for the average single-family homeowner will be an increase of $20.21 per year, or $5.05 per quarter,” Westerling said, citing the department’s analysis. Assistant Commissioner Jared Connor and DPW staff provided line-item breakdowns showing the Upper Blackstone assessment and debt service as the largest drivers of the sewer increase.

Why it matters: the subcommittee’s recommendation goes to the full City Council; the change would alter utility bills for households and businesses beginning July 1 and affects the enterprise funds the city uses to manage water and sewer infrastructure.

Key facts and figures presented at the meeting included:
- Water rate (proposed): $3.85 per 100 cubic feet (a 3¢ change; described as a 0.8% rate increase by DPW staff).
- Sewer rate (proposed): $9.49 per 100 cubic feet (4.1% increase overall).
- Lifeline rate for eligible elderly homeowners: $170 per year (no change proposed).
- Out-of-town water users: $4.12 per 100 cubic feet.
- DPW said Upper Blackstone assessment growth accounts for roughly 44% of the proposed sewer-rate increase; DPW staff reported the Upper Blackstone assessment rose by about $959,834 (approximately a 4.1% increase) for FY26.
- City auditor Robert Stearns said the water fund’s beginning FY24 balance was $13.9 million and that, based on revenues and expenditures to date, the fund looked likely to end FY25 with a $2 million–$3 million surplus, bringing the water reserve to about $16.9 million.

Committee members pressed staff on reserves and alternatives. Councilor Moe Bergman proposed using $1 million from sewer reserves and $250,000 from water reserves to reduce the proposed increase for ratepayers (he argued a partial drawdown would still leave reserves above the subcommittee’s three-month operating target). DPW staff and the city auditor objected to drawing larger amounts from reserves without accounting for capital planning and contingent liabilities; DPW noted a pending legal matter involving the Department of Conservation and Recreation (DCR) and the town of Holden that could create significant unforeseeable costs and said that the city uses reserves to smooth rates across years and to avoid steep spikes when major capital projects occur.

City Auditor Robert Stearns and DPW staff described the city’s reserve policy and targets: a three-month (roughly 90-day) operating reserve target that DPW staff calculate at about $8 million for both the water and sewer funds (on the sewer side DPW removes the Upper Blackstone assessment from the calculation to arrive at that figure). Connor told the committee that historically the city has used reserves for large capital investments (for example, earlier filtration or major improvements) to avoid dramatic single-year rate jumps.

During the exchange there were two different cited estimates of the per-household impact discussed in the meeting record: DPW’s memo line showed a $20.21-per-year increase for the average single-family homeowner; later in the meeting a department staff number, when read aloud, was $18.35 per year. The transcript records both figures; the subcommittee did not resolve the discrepancy on the floor. (The article reports both numbers as stated in the meeting record.)

Formal action and next steps: Councilor George Russell made a motion to accept DPW’s recommendation; the motion was seconded and the subcommittee approved it on roll call (Councilor Candi Merrill Carlson: Yes; Councilor Pacillo: Yes; Councilor George Russell: Yes). The subcommittee’s recommendation will go to the full City Council for final action before the July 1 effective date if the council follows the committee’s recommendation.

Discussion vs. decision: Committee discussion included technical budget drivers (Upper Blackstone assessment, debt service, salaries, maintenance), reserve balances and policy, contingency for litigation, and possible use of reserve funds to reduce rate increases. The formal decision recorded was the committee’s recommendation to the full council to adopt the DPW rates as presented.

What to watch: the full City Council’s vote on the DPW recommendation and any amendments that body might adopt, and whether DPW provides the detailed integrated plan project list and reserve-use schedule requested during the meeting.