By MAUREEN DOHERTY
NORTH READING — The town’s water rates will be increasing higher than originally projected over the next several years to account for planned improvements to the water infrastructure in the town of Andover.
Indirectly, any improvements to Andover’s water infrastructure, such as lining corroded pipes or replacing old water mains will ultimately improve the water quality in North Reading. The town now buys 100 percent of its water from Andover under an existing 99-year lease.
The Select Board learned from Water Superintendent Matt Prince on Monday night that the five-year rate plan approved by Andover’s Water Commissioners last August 1, 2024 of increases ranging from 6% in both FY26 and FY27 and 5% in FY28, FY29 and FY30 was revised a couple of weeks ago.
Andover’s projections have been revamped to meet that town’s infrastructure needs affected about 40 miles of water mains so as of June 5, 2025, the proposed increases are 15% for the next four fiscal years and a 10% increase in FY30.
Currently, the town has an inter-municipal agreement in place under its 99-year lease with Andover that limits the annual increases in the rate structure. However, by FY28, the town’s water rate will remain at 95% of the lowest residential tier rate charged to Andover’s customers.
Therefore, in order to stay ahead of the curve, the North Reading’s Water Department charges a higher rate while the town’s rates to buy the water are lower due to the IMA and sets excess funds aside to help stabilize the rates across the board in later years.
Prince told the board that in order to cover the increase in the budget, keep up with debt service payments as well as Andover’s rate increases, the Water Commissioners recommended raising the town’s water rates by 15% in FY26 “across all three tiers.”
The rates in each tier are based on 1,000 gallons of usage.
Last year, the town had increased the rates by 6% across the board so the FY25 rate at Tier 1 is $11.25. A 15% increase for FY26 — which begins July 1 — will raise the rate to $12.93. (Tier 1 is up to 10,000 gallons per quarter).
The existing Tier 2 rate is $16.49. This will rise to $18.97 in FY26. (Tier 2 is 10,000 to 22,500 gallons per quarter).
The existing Tier 3 rate is $22.49. This will rise to $25.87 in FY26. (Tier 3 is above 22,500 gallons per quarter).
There is also an administrative fee of $5 per bill.
Prince added that the town will continue with its leak protection monitoring throughout town to limit the amount of unbilled water usage the town is responsible for paying to Andover as well as continuing its own program of water systems upgrades each year.
“Currently, our agreement with Andover is we pay a reduced rate that cannot go up by more than 2.5% each year. That portion of the agreement expires after three more fiscals years, bringing us to 95% of their Tier 1 rate in FY28 (July 1, 2027). That is projected to be an increase of 79% from FY27 to FY28,” Prince stated, making it necessary to continue raising water rates over the next several years to keep up so the customers are not hit with such a steep increase.
Andover has proposed a three-phase plan to replace its remaining 40 miles of unlined water mains and those mains prone to breakage. Phase 1 is the priority replacement of 10.5 miles of water mains in the next five years. Phase 2 includes 14.6 miles of water mains to be replaced in 6 to 10 years; and Phase 3 is the replacement of 14.4 miles of water mains in 11 to 15 years.
The plan is prioritized base on need, with Phase 1 having the greatest impact on reducing discolored water. In order to keep up with such a plan, Andover needs to replace four miles of water mains per year.
The Select Board agreed with the need for the water rate increase and voted 4-0 in favor of the plan. Voting for the plan were Vice Chairman Rich Wallner and members Vincenzo Stuto, Nick Masse and Catherine Morrin. Chairman Steve O’Leary was absent. The vote is subject to the town’s Water Commissioners’ subsequent approval as the commissioners were unable to meet prior to the June 16 Select Board meeting.