Average water rate at $1,000 and may grow

The average household in Greater Boston is paying more than $1,000 for water and sewer services this year, the second in a row that homeowners have faced a 6 percent rate hike, according to an annual survey released yesterday by the Massachusetts Water Resources Authority Advisory Board.

The increase, an average of $60, marks the first time average annual bills rose above three figures and reflects a 60 percent increase in the past 15 years. Over the next decade, rates for water and sewer service are expected to increase another 51 percent, or $254 million, according to the advisory board.

Ratepayer advocates said homeowners must accept the rate hike, which state budget cuts may drive significantly higher than the advisory board's estimate next year. The board's survey does not take into account the $19 million in debt-service relief that Governor Mitt Romney cut this year from the state's sewer rate relief fund.

"Debt-service assistance is a crucial tool to help the ratepayers," said Katherine Dunphy, chairwoman of the advisory board, which represents ratepayers. "If those funds are not restored, a rate increase halfway through the fiscal year would disrupt communities' budgeting and spending plans and would be a difficult financial setback for ratepayers."

Without the $19 million, advisory board officials said they could not estimate how high the average bill would grow for 2007.

Eric Fehrnstrom, a spokesman for Romney, said the administration has no plans to reinstate the money.

"These spending reductions were made to balance the state budget," he said. "The MWRA provides water and sewer service to people in metropolitan Boston, but taxpayers in Worcester, Springfield, and around the state shouldn't have to subsidize it.

"If we had more money, we might be able to afford it. Until then, the MWRA is going to have to find the savings in their own budget."

Richard Chacon, a spokesman for Governor-elect Deval Patrick, said the incoming administration is reviewing the cuts.

They have yet to commit to reinstating the debt-service relief.

The rising cost of water and sewer services is the result of the state's effort to comply with a host of federal and state regulations, which includes years of spending to clean up Boston Harbor, said Fred Laskey, executive director of the Massachusetts Water Resources Authority.

About 60 cents of every dollar the authority spends pays debt on outstanding bonds for such projects as the $4 billion Deer Island sewer treatment plant and the $2 billion in upgrades to the authority's water transmission system, Laskey said.

"We can't fool ourselves," he said. "The mortgage is coming due for a lot of major projects."

He described the advisory board's survey as a "realistic picture of the worst-case scenario" of future costs. "Our job is to manage the operation and our debt portfolio to minimize these rate increases," Laskey said. "But the pressure is real. We're doing everything we can to control costs."

As an example, the authority has cut 500 employees since 1997, he said.

The advisory board's survey reflects the average rate for water and sewer services paid by households in 60 Boston-area communities that use an average 90,000 gallons of water a year.

Michael Widmer, president of the Massachusetts Taxpayers Foundation, said homeowners will have little choice but to pay the rising fees. "There are not many opportunities for savings, given the enormous capital investments and the need to repay the debt," said Widmer. "I'm not saying there aren't any opportunities for savings, but they're limited. This is a reality that's going to hit the ratepayers hard over the next decade."