Melrose Council To Weigh No-Increase Water And Sewer Rates For FY27

MELROSE, MA — Water and sewer customers could avoid a rate increase next fiscal year under a recommendation scheduled for review by the City Council’s Appropriations and Oversight Committee on Thursday night.

The committee is set to hold a public hearing at 7:45 p.m. on June 4 at City Hall to consider fiscal year 2027 water and sewer rates. The Water and Sewer Rate Advisory Committee has recommended keeping both volumetric rates and base fees unchanged from the current fiscal year, according to city budget materials.

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The recommendation would keep Melrose’s first-tier quarterly water rate at $8.32 per 100 cubic feet and its second-tier rate at $11.15. Sewer rates would remain $12.25 per 100 cubic feet for the first tier and $15.43 for the second tier. The same figures are listed in the city’s current FY26 water and sewer rate schedule.

The committee said the city can meet FY27 revenue requirements without rate hikes because of modest increases in MWRA assessments, lower sewer-fund debt repayment costs and continued reductions in sewer flows tied to Melrose’s work to remove groundwater and rainwater from the sanitary sewer system.

The Massachusetts Water Resources Authority plays a major role in local water and sewer costs across the region. MWRA describes itself as a wholesaler to member communities and says its assessments typically account for about 45% of what communities bill their own customers, though the share varies by municipality.

The Melrose proposal also recommends no transfers into water or sewer reserve funds for FY27, with both funds sitting just above the city’s target of 10% of annual operating expenses. The committee is recommending one free cash allocation: $150,000 from the Sewer Enterprise Fund as a down payment toward replacing the city’s Vactor truck, which is used for sewer and drainage maintenance.

The potential rate freeze comes as nearby communities continue to face utility increases. Arlington, for example, approved an average 4.48% water and sewer rate increase for FY27, though local rate structures and cost drivers differ from community to community.

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