MASSACHUSETTS WATER RESOURCE AUTHORITY ADVISORY BOARD
The Massachusetts Water Resource Authority (“MWRA”) was created by the Massachusetts Legislature in 1984 to succeed to the interests of the Metropolitan District Commission with regard to the delivery of safe drinking water to the member communities and to treat and dispose of wastewater from the member communities, all in conformance with applicable law. There are 61 cities and towns that are served by the MWRA. The same legislation that created the MWRA also created the Massachusetts Water Resource Authority Advisory Board to represent the interest of the sixty-one member communities. Each municipality is represented by at least one person on the Advisory Board.
The undersigned was appointed to the Advisory Board by the Selectmen in January of 1993. After said appointment by the Selectmen, he was elected to the Executive Committee of the Advisory Board and has served in that capacity continuously since 1993. The Executive Committee meets once each month in advance of full meeting of the entire membership of the Advisory Board.
MWRA provides wholesale water and sewer services to 61 communities. Forty-seven communities purchase water supply services, and 45 communities purchase wastewater transport and treatment services. Thirty-one communities purchase both. Approximately 2.5 million people, or 43 percent of the population of Massachusetts live and work in the communities that purchase water and/or wastewater services from MWRA.
MWRA provides water and sewer services to communities on a wholesale basis. Each community then re-sells services on a retail basis. As a result, household water and sewer charges include each household’s share of the community’s MWRA water or sewer assessments, plus the community’s own charges for the provision of local water or sewer charges.
MWRA funds its operations primarily through user assessments and charges. No funds supporting the current expense budget are subject to appropriation, except debt service assistance from the Commonwealth of Massachusetts and several minor reimbursements from the Commonwealth. Federal grants have ended.
MWRA finances its capital improvement program primarily by issuing long-term general revenue bonds. Savings in capital costs are particularly important since every dollar cut from the capital budget saves approximately three dollars in future debt financing costs. The MWRA has adopted a policy whereby the term of bonds is matched to the life of the facility/facilities. The debt service for the MWRA, currently 61% of the annual current expense budget, is expected to grow from $294 million per year in December of 2002 to $500 million per year in December 2012.
The Boston Harbor Project is the second largest public works project ever undertaken in New England. Construction for the Boston Harbor Project is complete. According to the MWRA, the total cost of the project was $3.5 billion, not including the $150 million for the processing of residuals (pellets) in Quincy.
The MWRA’s Waste Water Collection System is comprised of a North System and a South System. In the aggregate for both the North System and the South System there are thirteen (13) major projects for system improvements. Through FY ‘02 the MWRA spent $592.3 million on the system improvements and is expected to expend $686.4 million through FY ‘03.
The Combined Sewer Overflow (“CSO”) program is proceeding. Spending through FY ‘02 was $176 million. Through FY ‘03 the spending will have grown to $210.9 million. It is anticipated that expenditures on the CSO program, which should be completed by 2010, will be an additional $439.8 million (December 2003 dollar values).
The Water Works System Improvements Program (“WWSIP”) consists of 50 projects. The largest projects are the Walnut Hill Water Treatment Plant ($333 million) scheduled for completion in April 2004. The MWRA will also construct 7 covered storage facilities to protect treated potable water ($197 million). The scheduled completion date for the covered storage facilities is December 2005. The Metro West Water Supply Tunnel ($647 million) is scheduled to be completed in the late summer of 2003.
MWRA staffing, which was at 1754 in June of 1997, dropped to 1385 in June of 2002 and will be further reduced to 1325 filled positions by June of 2003.
The severe shortfall in revenues compared to expenditures in FY ‘03 has required the elimination of the entire State Debt Service Assistance of $47.2 million in FY ‘03. As of December 2002, Belmont’s combined sewer and water assessment by the MWRA has increased $188,300.00 over FY ‘02, which translates to a combined increase in sewer and water assessments by the MWRA on Belmont of 2.7% over FY ‘03. Each community independently establishes retail sewer and water rates. When establishing local rates, community officials consider issues related to the pricing of services, level of cost recovery, and the local rate structure or methodology.
For an accurate and easily understood financial impact of the activities of the MWRA upon the ratepayers of Belmont, owners of property in Belmont should consult the monthly bills received from the Belmont Water Department. The water bills report the percentage of the total amount requested under said bills, which is directly attributable to the activities of the MWRA. By legislation, ratepayers and member communities have no choice except to pay to the MWRA the full amount assessed against the respective communities by the MWRA.
Respectfully submitted,
Guy A. Carbone, Member MWRA Advisory Board
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