Budget and Finance
The discipline we bring to maintaining the sewer system is consistent with our stewardship of the District's financial resources. The LSDC takes a conservative approach to adequately plan for dependable service, ongoing maintenance, and the demands of growth.
How your sewer rates are set
The Board of Commissioners reviews revenue requirements annually based on the District's budget development and rate model. We base our rate on what we are charged by the MWRA treatment plant that we discharge to as well as our annual operating costs. The majority of our costs are fixed and we recoup those costs through our rates. When costs go up we first determine if we can absorb them with our rate stabilization fund before revising rates.
Before enacting a rate revision, we conduct public hearings that provide customers with an opportunity to voice your comments and concerns about potential rate increases. The rate hearings are advertised and any proposed rates are posted on the District website. Once hearings are held and rates are discussed and considered the Commission will vote to accept a rate change. The Commission has the final authority to set the sewer rates.
Where does your money go?
When you pay your bill, the money goes directly into protecting, operating and maintaining the sewer infrastructure for current and future needs. There are no other departments or distractions to divert these resources away from providing dependable sewer service. Our sole focus is the pipes, pumps, technology and experts to keep the system running smoothly. And because your money goes directly into this system, you actually have an ownership stake in how it's managed.
Our major cost centers are Treatment, Operation, Utilities, and Capital Improvements.
Good management practices dictate the need for an annual budget as a means for understanding service costs, funding programs, establishing long-term capital improvement plans, establishing fiscal priorities, and monitoring trends and the fiscal condition of the District. The need for timely budgeting is also critical. The District Budget is prepared and submitted to the Commission each Spring to enable the District to adopt the fiscal plan prior to the commencement of the new fiscal year. The budget is reviewed and approved by the Commission and ratified by Voters at the annual meeting of the District.