{"id":15648,"date":"2025-05-19T14:21:45","date_gmt":"2025-05-19T18:21:45","guid":{"rendered":"https:\/\/www.gcdev3.com\/mwra\/?p=15648"},"modified":"2025-05-19T19:29:40","modified_gmt":"2025-05-19T23:29:40","slug":"pfy26cr","status":"publish","type":"post","link":"https:\/\/www.gcdev3.com\/mwra\/pfy26cr\/","title":{"rendered":"MWRA at 40: Planning Ahead with the Advisory Board\u2019s FY26 C&#038;R"},"content":{"rendered":"<div style=\"border-left: 4px solid #0073aa; background-color: #f1f1f1; padding: 1em 1.25em; margin: 1.5em 0;\">\n<h3 style=\"margin-top: 0;\"><strong>TL;DR \u2013 What You Need to Know<\/strong><\/h3>\n<ul style=\"margin-left: 1em;\">\n<li><strong>The Advisory Board recommends lowering MWRA\u2019s proposed FY26 rate increase from 2.98% to 2.70%<\/strong>, through $5.8M in targeted expenditure reductions.<\/li>\n<li><strong>Key recommendation:<\/strong> Bring back the <em>Long-Term Rates Management Committee (LTRMC)<\/em> to connect capital pacing, rate forecasting, and long-term obligation planning.<\/li>\n<li><strong>Operating surplus?<\/strong> Use it with purpose: <em>redirect vacancy-driven savings to Pension\/OPEB<\/em>, or budget transparently for pre-payment of debt.<\/li>\n<li><strong>Support capital priorities<\/strong> like Metro Tunnel Redundancy\u2014but push for smart pacing and affordability analysis.<\/li>\n<li><strong>Revamp CSO strategy<\/strong> to ensure dollars are going where they deliver real environmental and financial benefit.<\/li>\n<li><strong>Mind the gap:<\/strong> Water assessments are rising faster than sewer. That needs to change.<\/li>\n<li><strong>We strongly oppose H.897\/S.447<\/strong>\u2014a bill that shifts massive costs onto MWRA ratepayers with no benefit to the communities paying them.<\/li>\n<li><strong>Protect the filtration waiver:<\/strong> Restore DCR Ranger enforcement and maintain active forest management.<\/li>\n<li><strong>It\u2019s MWRA\u2019s 40th anniversary<\/strong>\u2014time to celebrate what\u2019s worked, and recommit to what\u2019s next.<\/li>\n<\/ul>\n<a href=\"https:\/\/www.gcdev3.com\/mwra\/document-library\/pfy26-comments-recommendations\/\" target=\"_blank\" class=\"btn primary\">\ud83d\udcd6 Read the full document here<\/a>\n<\/div>\n<p><!-- TL;DR Section for WordPress --><\/p>\n<div>\n<h3>40 Years of Partnership, Policy, and Progress:<\/h3>\n<p><strong>The Advisory Board\u2019s FY26 Recommendations Build on a Legacy of Long-Term Stewardship<\/strong><\/p>\n<p>Fiscal year 2026 marks the <strong>40th anniversary<\/strong> of the MWRA\u2019s enabling legislation\u2014and with it, four decades of collaboration between the Authority and the Advisory Board. Since 1985, the Advisory Board has served as the voice of ratepayers across 60 cities and towns, ensuring that decisions about spending, infrastructure, and policy are made not just for today, but for the decades ahead.<\/p>\n<p>Over those forty years, we\u2019ve seen enormous victories:<\/p>\n<p>The transformation of <strong>Boston Harbor<\/strong> from a national embarrassment into a global model of urban clean water recovery.<\/p>\n<ul>\n<li>The preservation of <strong>pristine, forest-filtered water supplies<\/strong>\u2014protected without the need for costly filtration plants.<\/li>\n<li>The evolution of MWRA into one of the <strong>most stable and predictable regional systems<\/strong> in the country, with consistent AAA bond ratings and multi-year financial planning frameworks.<\/li>\n<\/ul>\n<p>These are no small feats. And they didn\u2019t happen by accident.<\/p>\n<p>They happened because of long-range thinking. Because of collaborative governance. Because the MWRA, its staff, and its member communities\u2014including the Advisory Board\u2014chose to focus not only on compliance, but also on capacity; not only on cost control, but also on value.<\/p>\n<h3>FY26: Steady Rates, Growing Pressures<\/h3>\n<p>This year\u2019s proposed FY26 budget from MWRA reflects a <strong>2.98% increase in the combined assessment<\/strong>\u2014a stable figure in the face of rising personnel costs, multi-billion-dollar capital projects, and evolving regulatory challenges.<\/p>\n<p>The Advisory Board recommends a <strong>net reduction of $2.46 million<\/strong>, resulting in a revised combined increase of <strong>2.70%<\/strong>. This was achieved through <strong>$5.8 million in recommended reductions<\/strong>, offset by MWRA\u2019s own spring revisit updates.<\/p>\n<p>But more importantly, this year\u2019s <em>Comments &amp; Recommendations<\/em> focus not only on the numbers, but on the <strong>systems behind the numbers<\/strong>\u2014the assumptions, policies, and frameworks that shape how the MWRA plans for its future.<\/p>\n<h3>Reconnecting Strategy to Spending: Bring Back the LTRMC<\/h3>\n<p>A core recommendation this year is the <strong>reconvening of the Long-Term Rates Management Committee (LTRMC)<\/strong>. Historically, this committee helped coordinate capital planning, rate modeling, and long-range forecasting. We believe it\u2019s time to bring that structure back.<\/p>\n<p>Why?<\/p>\n<p>Because this year\u2019s budget touches on every corner of long-term rate stability:<\/p>\n<p>Capital pressures are growing, with <strong>Metro Tunnel Redundancy<\/strong> and <strong>CSO program updates<\/strong> advancing in tandem.<\/p>\n<ul>\n<li>Surpluses in <strong>personnel and fringe benefit spending<\/strong> continue, raising transparency questions about how those dollars should be treated.<\/li>\n<li>The <strong>rate of increase between water and sewer assessments<\/strong> is diverging\u2014creating pressure on local budgets even when the combined rate remains stable.<\/li>\n<\/ul>\n<p>Each of these issues is complex. Each would benefit from deeper, structured analysis. The LTRMC can help.<\/p>\n<h3>Budget Transparency: Purpose-Aligned Use of Surpluses<\/h3>\n<p>MWRA\u2019s operating budget again includes full funding for all staff positions\u2014despite year-over-year vacancy trends that leave millions unspent in the <strong>Wages, Salaries, and Fringe Benefits<\/strong> lines. This year, the Advisory Board made only modest reductions to those categories\u2014but paired those adjustments with a clear recommendation:<\/p>\n<p>If dollars are raised for employee wages and benefits but not used, they should be <strong>redirected to related long-term liabilities<\/strong> like Pension and OPEB.<\/p>\n<p>If MWRA prefers not to redirect, then the line items should be <strong>right-sized<\/strong>, and any intentional surplus should be transparently presented as a <strong>pre-payment of debt<\/strong>\u2014not hidden inside inflated personnel budgets. This isn\u2019t just a fiscal detail\u2014it\u2019s about <strong>trust and transparency<\/strong>.<\/p>\n<h3>Capital Planning and CSO: Prioritize What Works<\/h3>\n<p>MWRA is entering an era of capital investment not seen since the original construction of <strong>Deer Island<\/strong> and the <strong>metro water tunnels<\/strong>. The Advisory Board supports the vision\u2014but calls for <strong>deliberate pacing<\/strong>, clearer <strong>affordability metrics<\/strong>, and a <strong>value-driven CSO strategy<\/strong>.<\/p>\n<p>Our CSO policy recommendation emphasizes the need for:<\/p>\n<p>Cost-effective solutions that deliver <strong>meaningful water quality improvements<\/strong>;<\/p>\n<ul>\n<li>Avoiding <strong>overengineered fixes<\/strong> with limited environmental return; and<\/li>\n<li>Making sure each dollar spent improves the system for <strong>everyone<\/strong>\u2014not just to satisfy outdated mandates.<\/li>\n<\/ul>\n<\/div>\n<a href=\"https:\/\/www.gcdev3.com\/mwra\/what-are-we-paying-for-clean-water-a-closer-look-at-the-updated-cso-control-plan\/\" target=\"_blank\" class=\"btn primary\">\ud83d\udc40 Read our blog post on the CSO LTCP<\/a>\n<div>\n<h3>Water vs. Sewer: It\u2019s Not Just the Combined Rate<\/h3>\n<p>The MWRA emphasizes the combined assessment rate\u2014but communities budget separately for water and sewer. In recent years, the <strong>rate of increase for water assessments<\/strong> has outpaced sewer, even though sewer service remains more expensive overall.<\/p>\n<p>The Advisory Board is calling for a <strong>more balanced rate trajectory<\/strong> across both utilities. It\u2019s not a fairness issue\u2014it\u2019s a <strong>practical one<\/strong>. Communities benefit from <strong>parity<\/strong>, not lopsided growth between their two enterprise funds.<\/p>\n<h3>Standing Up for MWRA Communities: Rejecting H.897\/S.447<\/h3>\n<p>The Advisory Board is firmly opposed to <strong>H.897\/S.447<\/strong>, a bill that would extract tens of millions of dollars from MWRA ratepayers to benefit a small set of Quabbin-area communities.<\/p>\n<p>The legislation:<\/p>\n<p>Imposes <strong>new, unjustified annual costs<\/strong> on MWRA communities;<\/p>\n<ul>\n<li>Proposes changes to MWRA\u2019s <strong>governance structure<\/strong>, disregarding the carefully balanced Board composition that has been central to the Authority\u2019s 40-year track record of success; and<\/li>\n<li>Ignores the fact that MWRA ratepayers have already invested over <strong>$850 million<\/strong> in watershed protection\u2014including PILOT payments, land acquisition, and local grants benefiting these same Quabbin communities.<\/li>\n<\/ul>\n<p><strong>Adding new burdens to the communities already funding the system isn\u2019t equity\u2014it\u2019s overreach.<\/strong><\/p>\n<p>We urge MWRA and state leaders to reject this bill and protect the integrity of the system we\u2019ve all built together.<\/p>\n<\/div>\n<a href=\"http:\/\/google.com\" target=\"_self\" class=\"btn primary\"> \ud83d\udc40 Read our blog post and full letter to the MWRA Board<\/a>\n<div>\n<h3>Protecting the Filtration Waiver: A Policy Worth Defending<\/h3>\n<p>Two policy fronts continue to threaten the system\u2019s <strong>filtration waiver<\/strong>:<\/p>\n<ol>\n<li>Loss of enforcement authority for <strong>DCR Rangers<\/strong> in MWRA\u2019s watershed lands; and<\/li>\n<li>Proposals to halt <strong>active forestry<\/strong>, despite its proven role in maintaining healthy, resilient forest ecosystems.<\/li>\n<\/ol>\n<p>Together, these issues jeopardize the integrity of the source waters. If the waiver were lost, MWRA ratepayers could face <strong>hundreds of millions<\/strong> in new construction and operational costs\u2014alongside increased <strong>greenhouse gas emissions<\/strong>.<\/p>\n<p><strong>Protecting the waiver isn\u2019t optional\u2014it\u2019s essential.<\/strong><\/p>\n<h3>Forty Years In\u2014and Still Looking Ahead<\/h3>\n<p>The past forty years have shown what\u2019s possible when technical excellence is paired with public accountability. The MWRA Advisory Board is proud of the role it has played\u2014not just as a reviewer of budgets, but as a <strong>long-term steward<\/strong> of one of the country\u2019s best public utility systems.<\/p>\n<p><strong>This year\u2019s recommendations build on that legacy.<\/strong><\/p>\n<p>We thank MWRA staff and leadership for forty years of partnership\u2014and we look forward to continuing this work in the decades to come.<\/p>\n<p>&nbsp;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>TL;DR \u2013 What You Need to Know The Advisory Board recommends lowering MWRA\u2019s proposed FY26 rate increase from 2.98% to 2.70%, through $5.8M in targeted expenditure reductions. Key recommendation: Bring [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":15670,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[36],"tags":[],"class_list":["post-15648","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-post","has-thumbnail"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.gcdev3.com\/mwra\/wp-json\/wp\/v2\/posts\/15648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gcdev3.com\/mwra\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gcdev3.com\/mwra\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gcdev3.com\/mwra\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gcdev3.com\/mwra\/wp-json\/wp\/v2\/comments?post=15648"}],"version-history":[{"count":19,"href":"https:\/\/www.gcdev3.com\/mwra\/wp-json\/wp\/v2\/posts\/15648\/revisions"}],"predecessor-version":[{"id":15675,"href":"https:\/\/www.gcdev3.com\/mwra\/wp-json\/wp\/v2\/posts\/15648\/revisions\/15675"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gcdev3.com\/mwra\/wp-json\/wp\/v2\/media\/15670"}],"wp:attachment":[{"href":"https:\/\/www.gcdev3.com\/mwra\/wp-json\/wp\/v2\/media?parent=15648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gcdev3.com\/mwra\/wp-json\/wp\/v2\/categories?post=15648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gcdev3.com\/mwra\/wp-json\/wp\/v2\/tags?post=15648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}