By Alice Waugh
The Water Commission has proposed a water rate increase of 30%, along with a base meter rate hike from $35 per quarter to $50. In addition, the base meter charge for multi-unit complexes would be assessed on a per-dwelling basis, not by a per-meter basis as has been done in the past.
The new rates will be the subject of a public hearing on Tuesday, Feb. 25 at 9 a.m. in Town Hall.
The increases, which were endorsed by Lincoln Finance Director Colleen Wilkins, are necessary for the Water Department to meet its projected costs for fiscal 2021. The department is seeking an operating budget that’s 38% higher than this year’s, and it also needs to replenish its retained earnings, which have been depleted by unanticipated expenses over the past year.
After several years of no rate increases, last year’s 25% hike sent into effect on Jan. 1, 2019, largely to finance bonding of almost $2 million. Wilkins recommended that the new rates go into effect for water that’s used starting on April 1.
The proposed meter-vs.-dwelling change is the result of Water Commission research into how neighboring towns charge for housing that has more than one dwelling on a meter. In Lincoln, for example, most single-family homes have a single water meter, but complexes such as Lincoln Woods and the multistory independent-living building at The Commons have many separate dwellings but very few meters (often only one or two).
For medical facilities that have beds rather than dwellings, such as the skilled-nursing portion of The Commons and the Care Dimensions Hospice House, the number of beds will be divided by the number of people that typically dwell in one house in Lincoln, which was about 2.3 several years ago (the Water Commission is double-checking to make sure the figure is accurate today).
Since multi-unit buildings will now incur multiple base charges based on the number of dwelling units, the total bill for the complex will go up, regardless of how much water is used. Multi-dwelling complexes in Lincoln are charged at Tier 1 rates, since they use considerably less water than single-family homes where residents water their lawns and gardens.
“We reached a consensus that it is fair that every dwelling should have an equal part in the basic assessment required to sustain the infrastructure such as pipes, pumps, and treatment plants that varies very little as the amount of water used changes,” Water Commission Chair Ruth Ann Hendrickson said. “We are trying hard to base our decisions on data, and we are trying to be fair.”