After residents raised concerns over increased water rates, Peterborough implemented a program to help homeowners and residents of multi-family buildings using a universal meter and single-family homes looking to install irrigation system meters.
The increase in water rates was due in part to the new tier-based system the town follows. The previous system used a fixed rate for a baseline of 750 cubic feet or less of water usage and a fixed increase in that rate for every cubic foot exceeding the baseline.
The new system bases rates on four levels of quarterly water usage: Tier 1 is 0 to 300 cubic feet; Tier 2 is 301 to 1,000 cubic feet; Tier 3 is 1,001 to 6,000 cubic feet; Tier 4 is 6,001 cubic feet or more.
With the change in systems, residents of multi-family buildings relying on a single water meter had to pay Tier 3 rates.
“We knew multi-family properties would be using a single meter,” Assistant Town Administrator Seth MacLean said.
“Currently, some multi-family properties are served by a single meter, which aggregates all units’ consumption and can push residents into higher tiers even if their individual usage is low,” he said. “Because of this, many residents automatically entered Tier 3.”
According to MacLean, equity is the driving factor behind the incentive program. “We want residents to be billed fairly for their usage,” he said.
Multi-family homes using a single water meter make it impossible for residents of individual apartments to know how much water they’re using. To fix that problem, the incentive program will help property owners install and assign individual unit water meters in multi-family buildings.
MacLean said the tiered system was implemented to coincide with the town’s commitment to environmental sustainability, but a single water meter for multi-family homes is insufficient.
“The tiered structure is meant to encourage conservation,” he said. However, the system works best if the water is measured at the individual level so people can see the connection between their water use and their bill.
Among the eligibility requirements listed by the Department of Public Works are multi-family buildings with two or more units served by a single water or sewer meter and single-family homes installing a single dedicated irrigation meter for outdoor water use. Accordingly, applicants must be the property owner and current on all water and sewer bills. Properties also must have the infrastructure needed to support additional meters.
The town’s Water and Sewer Enterprise Fund will support the program, according to MacLean. “For now, it will be capped at $60,000,” he said, adding that there is room for adjustment in the expenditure cap. “We don’t know how many people will apply, nor how many will actually qualify. The program will be re-evaluated as necessary.”
For residents and property owners who take part in the program, the town will reimburse 100% of the purchasing and installation costs for the unit and irrigation meters.
The program will run for six billing quarters, with a retroactive start date of October 2025. It went into effect the first week of February.
MacLean said as long as they meet the eligibility requirements, the town will cover all applicants who qualify for the program.
He also stated the town has not taken any additional action regarding water rates as of yet. “The current focus, and the actionable direction given to staff, has been on developing and implementing the water meter incentive program,” MacLean said. He added the town wants to promote equitable billing for multi-tenant properties and irrigation systems.
MacLean said he encourages potentially qualifying property owners to visit the town’s website to learn more about the program.