Residents will be pouring more money into their water and sewer bills this year after selectmen this week increased the rates.
The new rates, effective retroactively to July 1, will increase the average residential bill by $1.48 a month for households with one or two people; $3.76 for average households with 3.3 residents; and $5.75 a month for larger families. According to the town, average monthly bills in those categories are now $35.64, $81.12 and $120.91, respectively.
Commercial rates will increase anywhere from $5.75 a month for low-end users whose average bill is $160 a month to $472 a month for large industrial users with a monthly bill of $9,450 a month.
The decision to raise the rates came after a two-week delay and arguments made by some members to ease the burden on the average homeowners by either making large industrial users pay more, or cutting costs.
The town's Water Rate Study Committee met last week to discuss the town's rate-setting mechanisms and offered a third option to selectmen Tuesday in which high-end users would pay more and residents would pay less.
Selectman Tom McQuaid favored the option, but others disagreed, saying it put too much burden on businesses.
"I think those proposed changes were too abusive toward businesses," said Selectman Helen Donohue. "The Town of Norwood succeeds because we have a nice blend of business and residential."
"I think it would be too much of a burden on commercial and industrial," said Selectman Mike Lyons. "In order to save the median household about $2 a month, we would be adding thousands of dollars a month to high-end users."
Donohue wanted the town to keep the same rates as they are now.
But General Manager John Carroll said the town fell $400,000 short last year, meaning rates were not high enough to recoup all the town's costs. The town had to dip into free cash to pay the bills.
Donohue doesn't believe $400,000 is too much in an overall water budget of more than $11 million, but Water Rate Study Committee member Joe DiMaria said if the town kept the same rates as last year, the deficit would be far greater than $400,000.
DiMaria said the total amount of water usage is going to drop this year, following a long trend of better conservation, but the fixed costs that water rates have to cover - the MWRA assessment and the town's water and sewer department costs - are fixed.
Donohue suggested a six-month trial with the same rates as in fiscal '09, but Carroll said that would leave the town in a major predicament of trying to recover costs at the end of the year.
"That would put us in dire circumstances," said Carroll.
Lyons said it's important for people to remember they are not really paying for the water that comes out of the tap, but for the services needed to bring fresh water into their homes and businesses.
"That service doesn't come cheap," said Lyons.
But Carroll said the cost of tap water is still very affordable, compared to purchasing it in the store.
"It's a very, very cheap commodity," said Carroll.
Daily News staff writer Brian Falla can be reached at 781-433-8339 or at bfalla@cnc.com.
