A communication transmitted from Yi-An Huang, City Manager, relative to recommendations for the block rates for water consumption and sewer use for the period beginning April 1, 2024 and ending March 31, 2025

2 TABLE 4 FY24-29 Water Projections FY24 FY24 FY25 FY26 FY27 FY28 FY29 Budget/Recap Projected Budget Projected Projected Projected Projected Water Expenditures: Subtotal Water Dept. Operating Budget 15,502,965 14,447,320 16,247,475 16,897,374 17,573,269 18,276,200 19,007,248 Capital 3,205,000 3,205,000 3,890,000 4,310,000 4,143,500 4,279,675 4,295,710 Capital - GAC filter media replacement - - - 1,600,000 1,600,000 1,600,000 1,600,000 Capital - Water Works Construction bonds - - - 851,500 2,065,875 3,005,436 3,565,570 Finance 225,000 225,000 225,000 225,000 225,000 225,000 225,000 Conservation 62,768 62,768 64,337 65,946 67,594 69,284 71,016 Public Works 400,000 400,000 400,000 - - - - Community Development 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Animal Commission 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Total Expenditures 19,435,733 18,380,088 20,866,812 23,989,820 25,715,238 27,495,595 28,804,544 Assumptions: 1) Operating Budget for FY25 is based on City Manager's Submitted Budget and increases 4% for FY26-29. 2) Debt Service decreases according to Debt Service Schedule. 3) Capital and debt service schedule as shown. 4) Public Works allocation FY26-FY29 covered in sewer rate. All others remain constant from FY25-29, but Conservation will increase by 2.5%. 5) GAC filter media replacement - $1.6M from ARPA funds will be used in FY25 (then $1.6M annually). 6) Retained earnings (fund balance) used - as shown Financing Plan Beginning Fund Balance 5,083,283 5,083,283 6,261,177 6,261,177 4,761,177 3,511,177 2,761,177 Revenue: Meter Revenue 18,385,733 18,507,982 19,766,812 21,389,820 23,365,238 25,645,595 27,704,544 Miscellaneous Water Charges 1,050,000 1,050,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 From Fund Balance - - - 1,500,000 1,250,000 750,000 - Total Revenue 19,435,733 19,557,982 20,866,812 23,989,820 25,715,238 27,495,595 28,804,544 Total Expenditures 19,435,733 18,380,088 20,866,812 23,989,820 25,715,238 27,495,595 28,804,544 Ending Fund Balance 5,083,283 6,261,177 6,261,177 4,761,177 3,511,177 2,761,177 2,761,177 projected rate increase 6.80% 8.21% 9.24% 9.76% 8.03%

3 TABLE 5 FY24-29 Sewer Projections FY24 FY24 FY25 FY26 FY27 FY28 FY29 Budget/Recap Projected Budget Projected Projected Projected Projected Sewer Expenditures: Public Works 7,195,735 7,195,735 7,772,899 8,083,815 8,407,168 8,743,454 9,093,192 Capital 3,000,000 3,000,000 7,000,000 9,000,000 9,000,000 8,500,000 9,000,000 Existing Debt 26,470,892 26,470,892 24,525,722 22,899,824 24,604,950 28,336,850 33,751,950 New Debt - - 2,922,593 5,655,000 6,890,000 8,125,000 6,500,000 Finance 225,000 225,000 225,000 225,000 225,000 225,000 225,000 Community Development 44,500 44,500 44,500 44,500 44,500 44,500 44,500 MWRA 30,601,130 30,213,141 30,600,984 31,947,427 33,353,114 35,020,936 36,771,983 Total Expenditures 67,537,257 67,149,268 73,091,698 77,855,566 82,524,732 88,995,740 95,386,625 Assumptions: 1) The FY25 MWRA assessment is based on the preliminary estimate received from the MWRA and reflects a 4.6% increase from the final FY24 assessment. 2) FY25-27 assessments are based on annual rate increases of 4.4%, and a 5% increase in FY28 - FY29. 3) Public Works allocation increases by 4% in FY25-28. 4) Capital as shown. 5) Debt Service increases according to Debt Service schedule. 6) All others remain constant. Financing Plan Revenue: Sewer Service Charge 66,237,256 68,502,384 71,791,698 76,555,566 81,224,732 87,695,740 94,086,625 Non- Metered Sewer Revenues 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 Total Revenue 67,537,256 69,802,384 73,091,698 77,855,566 82,524,732 88,995,740 95,386,625 Projected Sewer Service Charge Increase 4.8% 6.6% 6.1% 8.0% 7.3%

4 TABLE 6 Combined Water and Sewer FY24-29 FY24 FY24 FY25 FY26 FY27 FY28 FY29 Budget/recap Projected Budget Projected Projected Projected Projected Metered Water Revenue 18,385,733 18,507,982 19,766,812 21,389,820 23,365,238 25,645,595 27,704,544 Metered Sewer Revenue 66,237,256 68,502,384 71,791,698 76,555,566 81,224,732 87,695,740 94,086,625 Total 84,622,989 87,010,366 91,558,510 97,945,386 104,589,970 113,341,336 121,791,170 % increase - - 5.23% 6.98% 6.78% 8.37% 7.46%

5 TABLE 7 Water Fund Balances FY19-24 As of 6/30/19 As of 6/30/20 As of 6/30/21 As of 6/30/22 As of 6/30/23 As of 6/30/24 (Actual) (Actual) (Actual) (Actual) (Actual) (Projected) Water Fund Balance 11,662,943 12,221,893 10,799,427 8,690,099 5,083,283 6,261,117