Billerica is asked to OK water account

BILLERICA -- Worn electrical cables at Billerica's water treatment plant short-circuited and disabled filtration pumps last March. An emergency pump also failed, and the town's two water tanks sprang leaks.

These malfunctions shut down the town's entire water system, and prompted the state to advise residents to boil water before using it. The failures also exposed the extent of infrastructure problems within the system.

''That water emergency was a wake-up call, an omen for what could happen if we don't take steps to make repairs and do some of the other improvements that have not been done for many, many years," said Town Manager Rocco Longo of Billerica.

Now there is a push to remedy the problems. A proposal before the Oct. 4 Town Meeting calls for creation of a water enterprise fund to help finance capital needs and repairs. The account would separate Water Division revenues into one account.

Currently, Water Division revenues are funneled into the town's general fund. An enterprise fund would allow the Water Division to retain any surplus revenue.

According to Longo, the change would allow the division to schedule immediate repairs and start long-term planning.

''It would give us a better way to plan and manage what needs to be done," he said. ''It makes the Water Department more self-sufficient. We wouldn't have to be going back to the taxpayers for funds every time we needed a repair."

As an example, Longo pointed to another Town Meeting proposal. This one asks voters to approve spending $750,000 to paint and repair one of the town's two water tanks. The 7.5 million-gallon tank sits on Boston Road.

''With an enterprise account, we could make the repairs without having to ask Town Meeting," said Longo. ''The last time that tank was painted was 20 years ago."

The town Water Division generated about $3.6 million in revenue in the current fiscal year, but that sum was more than $600,000 short of what it actually costs to run the town's system. The difference will be covered by the town's general fund.

Selectman James O'Donnell has cautioned against starting an enterprise fund over concerns that it could lead to higher water rates for users.

''I'd like to know whether or not water rates will have to be raised as a result of these capital improvements and by how much," he said.

Longo said that water rates will probably have to be increased to make needed repairs. But that would happen with or without the creation of an enterprise fund, he said, and such a fund could allow the town to get to infrastructure upgrades sooner, possibly saving money in the long run.

Michael S. Rosa, chairman of the town's Board of Selectmen, said he supports the idea.

''It gives the town the ability to do some long-range planning," he said. ''We could deal with problems on an ongoing basis, before they become emergencies.

''That water tank could have been taken care of years ago, and it probably would have cost a lot less than it's going to cost us today," Rosa said. ''An enterprise fund allows us to be proactive."

Enterprise accounts are prevalent in communities throughout Massachusetts, according to Joan Grourke, spokesperson for the state Department of Revenue's Bureau of Local Services.

''They're used not only for water, but for other utilities, like gas, electric, or sewers," she said. ''It's an accounting mechanism. Money is segregated and then used for designated purposes."

Town officials say the fund would benefit the water system, because for years the town has spent inadequately on capital needs related to water.

According to Longo, Billerica has spent roughly $43 million for improvements or repairs to its infrastructure in 30 years.

But most of that, $36 million, was earmarked for the new water treatment plant off Treble Cove Road, which is tentatively set to go on line in November. The plant will replace the existing facility on Boston Road.

''That means the town has only spent $7 million on the other parts of its water infrastructure in 30 years," said Longo. ''That's very low, and the system has deteriorated because of it."

In making the change, the Water Division would be able to retain any surplus revenues for repairs and maintenance, said Billerica town accountant Paul Watson.

''Money would be carried over from one year to the next," he said. ''If we built up a surplus, then we'd use the money for system upkeep."