Published June 20, 2019

By MAUREEN DOHERTY

NORTH READING — Water Superintendent Mark Clark had good news to share with the Select Board Monday night on his recommendation for the town’s water rates for FY20. Water rates will remain the same as the current year.

Clark explained to the board during the annual required public hearing to set the water rates for the coming year that there is no need to increase the water rates because they have healthy reserve funds that had been built up over the past several years in anticipation of the possible transition to the MWRA rates had the town needed to stick with that plan if the Andover plan did not materialize.

But one year after the two towns agreed to the 99-year lease and with North Reading’s transition to the new smart meters nearing 98 percent completion, the town’s water department is in pretty good shape.

Prior to the 99-year lease agreement, Clark explained, “we were paying above Andover’s Tier 1 rate. Now we are paying 95% of their residential water rate.” He added that “the maximum annual increase in the first 10 years of that agreement is 2.5% per year, so even if Andover goes up 10% on their water rates, the rates they charge us can only go up 2.5%.”

Also helping the Water Department’s bottom line due to the lease agreement is the $95,300 annual credit for 10 years to North Reading by Andover, which is being credited monthly at $7,941 to reimburse the town for expenses incurred in the attempt to pursue the MWRA option through Reading after Andover initially told the town it could not meet 100% of the town’s water needs. Subsequent analysis proved otherwise and Andover then wooed the town back.

The Water Department’s recommended water rates, adopted by the Select Board effective July 1, 2019, are as follows:

•Tier 1: $9.07 per 1,000 gallons up to 10,000 gallons per quarter

•Tier 2: $13.31 per 1,000 gallons from 10,000 to 22,500 gallons per quarter

•Tier 3: $18.14 per 1000 gallons above 22,500 gallons per quarter

• Administrative fee: $5 per bill.

These water rates were approved by the Water Commissioners prior to the Select Board’s public hearing.

Clark also reported that the Water Enterprise Reserve Fund remain strong. Prior to the June Town Meeting, the fund, which is a combination of the Stickney Fund and the Water Infrastructure Stabilization Fund, totaled $2,052,928. After voters at Town Meeting approved a transfer of $512,428 in certified retained earnings into the Water Infrastructure Stabilization Fund, the new balance is $2,565,356.

The Water Department is still actively looking for a suitable location on the northern section of Main Street to site a booster chlorination facility near the town line with Andover. It’s needed to ensure the chlorination does its job as well at the end of the line, down near the Thomson Country Club off Elm Street, as it does at the start of the line.

Clark said they have filed their Notice of Project Change for review by MEFA. Comments have been received and they are preparing answers for FEIR. Water main construction plans are also in the design phase for sections of Main and North streets related to the Andover project, as well as Mt. Vernon Street, which is not related to the Andover connection.

Water meter changeover

The water meter changeover is also nearing completion. Out of the town’s 4,929 water meters, over 97% (or 4,807) are being read remotely. There are also 17 meters in homes with long-term vacancies and another 105 accounts that have not yet had meters replaced. Clark is convinced that they will never achieve 100% compliance.