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, 2026 and ending March 31, 2027.

2 TABLE 4 FY25-30 Water Projections Assumptions: 1) Operating Budget for FY27 is based on City Manager's Submitted Budget and increases 4% for FY28-31. 2) Debt Service decreases according to Debt Service Schedule. 3) Capital as shown. 4) Public Works funded through sewer rate starting in FY26 5) All others remain constant from FY27-31, but Conservation will increase by 2.5%. 6) GAC filter media replacement - $1.1M from ARPA funds used prior to FY27 (then $1.3M in FY27 and $1.35M FY28-FY31). 7) Retained earnings (Fund Balance) used - as shown FY26 FY26 FY27 FY28 FY29 FY30 FY31 Budget/Recap Projected Budget Projected Projected Projected Projected Water Expenditures: Operating (incl. fringe benefits) 16,377,535 15,719,965 16,120,361 16,765,175 17,435,782 18,133,214 18,858,542 Subtotal Operating Budget 16,377,535 15,719,965 16,120,361 16,765,175 17,435,782 18,133,214 18,858,542 Capital 4,452,385 4,452,385 4,355,505 4,564,775 4,657,565 5,300,000 5,900,000 Capital GAC filter media replacement - - 1,300,000 1,300,000 1,350,000 1,350,000 1,350,000 Capital - Water Works Construction bonds 579,811 579,811 576,250 1,115,500 2,187,450 2,688,265 2,994,026 Finance 225,000 225,000 225,000 225,000 225,000 225,000 225,000 Conservation 65,945 65,945 67,594 69,284 71,016 72,791 74,611 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 21,740,677 21,083,106 22,684,710 24,079,734 25,966,813 27,809,270 29,442,180 Financing Plan FY26 FY26 FY27 FY28 FY29 FY30 FY31 Budget/Recap Projected Budget Projected Projected Projected Projected Beginning Fund Balance 4,418,189 4,418,189 4,506,944 4,506,944 4,506,944 4,506,944 4,506,944 Revenue: Meter Revenue 20,390,677 20,071,861 21,684,710 23,179,734 25,166,813 27,109,270 28,742,180 Miscellaneous Water Charges 1,100,000 1,100,000 1,000,000 900,000 800,000 700,000 700,000 From Fund Balance 250,000 250,000 - - - - - Total Revenue 21,740,677 21,421,861 22,684,710 24,079,734 25,966,813 27,809,270 29,442,180 Total Expenditures 21,740,677 21,083,106 22,684,710 24,079,734 25,966,813 27,809,270 29,442,180 From Fund Balance 250,000 250,000 - - - - - Ending Fund Balance 4,168,189 4,506,944 4,506,944 4,506,944 4,506,944 4,506,944 4,506,944 Projected Rate Increase 8.0% 6.9% 8.6% 7.7% 6.0%

3 TABLE 5 FY26-31 Sewer Projections Assumptions: 1) The FY27 MWRA assessment is based on the preliminary estimate received from the MWRA 2) FY28-31 MWRA assessments are based on annual rate increases of 7%. 3) Public Works allocation increases by 4% in FY28-31. 4) Capital as shown. 5) Debt Service increases according to Debt Service schedule. 6) All others remain constant. FY26 FY26 FY27 FY28 FY29 FY30 FY31 Budget/Recap Projected Budget Projected Projected Projected Projected Sewer Expenditures: Public Works 7,871,016 7,871,016 8,565,419 8,908,036 9,264,357 9,820,219 10,409,432 Capital 10,800,000 10,800,000 12,875,000 12,250,000 10,250,000 8,000,000 8,000,000 Existing Debt 25,509,617 25,509,617 21,684,700 18,721,100 16,388,450 14,189,997 11,808,000 New Debt - - 3,304,667 11,157,000 19,266,500 27,572,000 33,663,500 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 33,069,500 32,988,091 34,312,984 36,200,198 38,734,212 41,445,607 44,346,799 Total Expenditures 77,519,633 77,438,224 81,012,270 87,505,834 94,173,019 101,297,322 108,497,231 Financing Plan FY26 FY26 FY27 FY28 FY29 FY30 FY31 Budget/Recap Budget Projected Projected Projected Projected Projected Revenue: Sewer Service Charge 76,219,633 75,214,374 79,612,270 86,105,834 92,673,019 99,797,322 106,997,231 Non- Metered Sewer Revenues 1,300,000 1,300,000 1,400,000 1,400,000 1,500,000 1,500,000 1,500,000 Total Revenue 77,519,633 76,514,374 81,012,270 87,505,834 94,173,019 101,297,322 108,497,231 Projected Sewer Service Charge Increase 5.8% 8.2% 7.6% 7.7% 7.2%

4 TABLE 6 Combined Water and Sewer FY26-31 FY26 FY26 FY27 FY28 FY29 FY30 FY31 Budget/recap Projected Budget Projected Projected Projected Projected Metered Water Revenue 20,390,677 20,071,861 21,684,710 23,179,734 25,166,813 27,109,270 28,742,180 Metered Sewer Revenue 76,219,633 75,214,374 79,612,270 86,105,834 92,673,019 99,797,322 108,497,231 Total 96,610,310 95,286,235 101,296,980 109,285,568 117,839,833 126,906,593 137,239,411 % increase - - 6.3% 7.9% 7.8% 7.7% 8.1%

5 TABLE 7 Water Fund Balances FY21-26 As of 6/30/21 As of 6/30/22 As of 6/30/23 As of 6/30/24 As of 6/30/25 As of 6/30/26 (Actual) (Actual) (Actual) (Actual) (Actual) (Projected) Water Fund Balance 10,799,427 8,690,099 5,083,283 6,222,379 4,418,189 4,506,944