HADLEY — All homes, businesses and farms using municipal water will be paying significantly higher rates after the Select Board this week agreed to adjustments aimed at generating enough money to cover the cost of water department operations and to build up reserves.

After receiving feedback from town farmers concerned about having agricultural users pay at the same rate for water as residential and commercial users, the board, in a unanimous vote Wednesday, agreed to the temporary water rates that will remain in effect through late summer, with another increase possible by mid-September.

The residential rate for all users will be $7.50 per 100 cubic feet and the commercial rate will be $8.95 per 100 cubic feet, while the agricultural and municipal rate will remain much lower, at $4.25 per 100 cubic feet.

For the average residential user, paying for water at a rate of $5.99 per 100 cubic feet, the new rate will mean an increase of 18.5%, while commercial users, whose average rate is $6.59 per 100 cubic feet, will see a 35.7% increase. Agricultural and municipal water users will have about a 31% increase, from the current $3.25 per 100 cubic feet.

Estimates show that what is collected from the new water rates will leave a surplus of $55,000, well short of the target of a $250,000 surplus that would begin building reserves again to cover long-term debt payments in the water budget. The board is anticipating forgoing some revenue in advance of making bigger adjustments in three months.

Tax Collector Susan Glowatsky said the precise amount the new rates bring in will depend on water usage.

Board member Amy Parsons proposed the three separate rates for each use category as a measure of fairness for farmers.

Farmers expressed concern with having agricultural rates equal to commercial and residential rates.

Joe Boisvert of Mount Warner Road said he understands that rates have to go up, but wondered if the town was making efforts to save money or were instead looking for the “low hanging fruit” that could increase income.

“In my opinion this came up quickly,” Boisvert said, suggesting the board postpone a vote for six months. “Once the rates go up they will never go down, we all know that, and this is an ag community.”

Chip Parsons of Mill Valley Road said water is critical for farms, including providing drinking water and cooling to livestock, washing vegetables and spraying for pest control.

“I hope we can keep the rates as reasonable as we can for agriculture, and we all know that costs have gone up for everybody,” Parsons said.

Select Board Chairman Randy Izer said the increases are appropriate under the circumstances. “We are not asking for something we don’t need, we absolutely have to have this money,” Izer said.

Board member Molly Keegan explained that a Tighe & Bond study from a few years ago told town officials that if they didn’t adhere to a proposal for regular increases, the town would run out of reserves. That has happened.

Keegan said Hadley is one of only a few communities with an agricultural category for water use and the financial management team has suggested eliminating it. This management team also has preferred to end the current tiered structure, in place since 2004, which charges higher rates for those residential and commercial users who use more water.

But board member Jane Nevnismith said if a single rate for water was put in place, residents at Town Meeting should be asked to consider if that is appropriate

“I hear the farmers’ plight,” Nevinsmith said.

“We have the highest agricultural preservation in the state,” Nevinsmith said. “My question is is that because we really believe in farming or because we don’t want developments. If we really believe in farming, we have to support the farmers.”

With little discussion on the sewer rates, the Select Board adopted a 35% increase in the residential rate, from $8.87 per 100 cubic feet to $11.98 per 100 cubic feet, and at least a 35% increase in the commercial rate, going up to $13.68 per 100 cubic feet from $9.10 per 100 cubic feet for those using under 7,500 cubic feet and $10.16 per 100 cubic feet for those who exceed 7,500 cubic feet.

All of the new rates will be calculated based on meter readings to be taken this month, Glowatsky said.

Scott Merzbach can be reached at smerzbach@gazettenet.com.