HomeMy WebLinkAboutSelectmen's Ad Hoc Water and Sewer Rate Study Committee - Presentation-06-27-2005Presentation to the
Board of Selectmen
Final Report
of the
Ad Hoc Water and Sewer
Rate Study Committee
Lexington, Massachusetts
June 27, 2005
Selectmen's Charge to the Ad Hoc Water
and Sewer Rate Study Committee:
• Advise the Selectmen regarding the methodology,
structuring and assumptions made in determining the
water and sewer rates.
• The Committee shall consider the feasibility of continuing
to appropriate funds through the water and sewer enterprise
accounts for in lieu of tax payments [PILOTs1.
• In addition, the Committee shall examine the inclining
block rate system, its strengths and weaknesses and
consider the assumptions made to determine the
accountability of indirect charges that are part of the rate
setting process.
• The Committee should consider the impact of any changes
that would be recommended.
Ad Hoc Water and Sewer Rate Study Committee
Recommendation
• Need to establish clear and consistent policy
guidelines for setting water and sewer rates.
Ad Hoc Water and Sewer Rate Study Committee
Recommendation
• The Water and Sewer operations should
operate as a self-sufficient, stand-alone,
transparent accounting entity that ... neither
subsidizes, nor is subsidized by the General
Fund.
Ad Hoc Water and Sewer Rate Study Committee
Recommendation
• hstablish and use quantifiable measures to
determine indirect costs.
Ad Hoc Water and Sewer Rate Study Committee
Recommendation
• Move to a flatter inclining block rate structure.
Ad Hoc Water and Sewer Rate Study Committee
Recommendation
• That all municipal and school buildings pay
for water and sewer services at a flat rate equal
to the average cost.
Ad Hoc Water and Sewer Rate Study Committee
Recommendation
• Phase-out PILOTs.
Ad Hoc Water and Sewer Rate Study Committee
Recommendation
• Appoint a Business Manager for the Enterprise
Fund, in order to provide sound financial
management on a day-to-day basis, and to
implement the rate -setting and financial
accounting policies we are recommending.
Water and Sewer Rate Study Committee,
Appointed Members
• John Bartenstein
• Larry Belvin
• Kathryn Benjamin
• Paul Chernick
• Dan Fenn
• Lorraine Fournier
• Ann Gilbert
• David Laredo
• Jim Osten
• Wade Tambor
• Bruce Williams
• Loren Wood (Chairman)