WORCESTER—The City of Worcester has reached a $35.5 million settlement with the Town of Holden, ending a long-running legal dispute over sewer use rates and setting a multi-year payment plan aimed at limiting the impact on local ratepayers.
City Manager Eric Batista announced Wednesday that Worcester, with the support of the City Council, reached a settlement agreement with Holden in the case Town of Holden v. Department of Conservation and Recreation and City of Worcester, according to a city announcement.
Under the agreement, Worcester will pay Holden $35.5 million over three years. The payment schedule includes an initial $10 million from the city’s sewer reserves by April 1, followed by a $10.5 million payment on July 1, 2026. Beginning July 1, 2027, Worcester will make three annual payments of $5 million.
As part of the negotiated terms, Holden agreed to forgive interest accrued after February 2026 and halt additional interest as payments are made — a move the city said will save Worcester approximately $4.5 million in potential costs.
“This has been a long, complex legal case,” Batista said in the announcement. “As city manager, my goal has always been to act in the best interest of our residents. In this situation, that meant exhausting all legal options. We accept that the courts have spoken and I have negotiated what I am confident is the best possible outcome – spreading out judgment payment over the course of three years and eliminating interest accrual to have the least amount of impact to Worcester ratepayers.”
Batista said he plans to present a report to the City Council in the coming weeks outlining how the settlement will affect sewer ratepayers.
“In the coming weeks, I will bring forward a report to council that will detail the impact to ratepayers,” Batista said in the announcement. “I look forward to working with the Commonwealth and neighboring towns to negotiate a new sewer use rate agreement.”
The settlement marks a significant development in a case that has drawn attention because of its potential financial impact on Worcester residents and surrounding communities that rely on the city’s sewer infrastructure.
City officials said further details about rate impacts and future agreements with neighboring communities are expected in the coming weeks.
