Development News for Saugus, Massachusetts

Water Rate Recommendations Presented; Committee Approves 2.5% Increase for FY27

The finance committee discussed recommendations for water rate adjustments for fiscal years 2027 through 2031. The Abrahams group presented a study indicating that without rate increases, the water enterprise fund would face deficits starting in FY27, depleting retained earnings. Several rate increase options were presented, including a 5% increase in FY27 followed by 7% in subsequent years, a 4% increase in FY27 with higher subsequent increases, and a 2.5% increase in FY27 with greater increases in later years. The committee ultimately voted to recommend Option 3, a 2.5% increase for FY27, which is projected to keep retained earnings close to the target of 10%. The committee also approved the water enterprise fund budget of $9,219,130 and the sewer enterprise fund budget of $7,798,210 for FY2027, with the sewer fund funded by retained earnings due to a zero-increase rate decision.