Residents will pay approximately $90 more annually for water and sewer service starting July 1, following rate increases approved by the town’s Water and Sewer Commission on June 24. The combined annual water and sewer bill for a standard household will be $2,661.20 ($1,029.20 water + $1,632 sewer).
For the 82% of Marblehead households (approximately 6,560 of the town’s 8,000 water accounts) that remain within the lower water usage tier (below 22,440 gallons quarterly), annual water bills will average $1,029.20 — comprising the $170 administrative charge plus $859.20 in usage fees. The 18% of accounts (about 1,440 households) that exceed the 22,440-gallon threshold will face significantly higher bills due to the elevated rates for consumption above this limit.
Sewer costs show similar tiered impacts. The 85% of users (about 6,715 of 7,900 sewer accounts) staying below 22,440 gallons quarterly will pay about $1,632 annually, while those exceeding the threshold face considerably higher bills as the rate jumps from $12.10 to $13.50 per 748 gallons for any usage above the 22,440-gallon mark.
Under the new structure, the quarterly water administrative charge will rise from $40 to $42.50 ($170 annually), while the sewer administrative charge increases from $37.50 to $45 per quarter ($180 annually).
For water usage, customers will pay $7.16 per 748 gallons for the first 22,440 gallons used quarterly, up from $7.10, and $11.65 per 748 gallons for usage exceeding 22,440 gallons, increased from $11.50.
On the sewer side, rates will increase to $12.10 per 748 gallons for the first 22,440 gallons and $13.50 per 748 gallons thereafter, up from $12 and $12.25 respectively.
For households using 22,440 gallons quarterly — the American Water Works Association standard comparison — the combined annual bill will increase from $1,012 to $1,029.20 for water service and from $1,590 to $1,632 for sewer service, a total annual increase of about $60.
The increases will support the FY 2026 water budget of $6.46 million and sewer budget of $5.53 million, representing increases of $256,524 and $136,448 respectively over the previous year.
The Water and Sewer Commission approved the new rates to address critical infrastructure needs and rising wholesale costs from both the Massachusetts Water Resources Authority and South Essex Sewerage District.
The water department budget increase stems from a $132,162 rise in MWRA charges, along with increases of $38,543 in salaries and $85,819 in expenses. For sewer operations, the budget rise is driven by a $117,206 increase in charges from SESD, along with a $22,793 increase in salaries, and a slight decrease of $3,551 in expenses.
A significant factor in sewer rates is the ongoing EPA administrative order requiring Marblehead to spend $1 million annually on infiltration and inflow removal over the next eight years, a project expected to cost more than $10 million.
The FY 2026 rate analysis also noted that sewer deduction meters have been added to the system at an increasing rate, with calendar year 2024 showing a 27% loss of sewer revenue due to these meters.
SESD, which treats Marblehead’s wastewater at its Salem facility, is planning major capital improvements as part of its “Centennial Plan.” The regional authority’s treatment plant, completed in 1998, is now over 25 years old and requires significant reinvestment. SESD is projecting $148 million in priority improvements over the next five years.
To stabilize rates amid these pressures, the commission has increased its zero-interest loan from the MWRA Local Assistance Program. The budget includes FY 2026 payments for those loans of $625,940, a 19% increase over the previous year.
Additionally, the commission approved increases to various service fees, including doubling the real estate closing administrative fee from $25 to $50.
The town’s water and sewer system serves approximately 8,000 customer accounts through over 83 miles of water mains, 28 pumping stations and 100 miles of sewer pipes.
