City of Worcester, MA

WORCESTER, Mass. – City Manager Eric D. Batista announced Wednesday that the City of Worcester, with the support of the City Council, and the Town of Holden have reached a settlement agreement over Town of Holden v. Department of Conservation and Recreation and City of Worcester. 

The municipality will pay the Town of Holden a total of $35.5M over the course of three years. An initial payment of $10M, which is from the municipality’s sewer reserves, will be paid by April 1, 2026. A payment of $10.5M will be paid on July 1, 2026. Starting July 1, 2027, the municipality will make three annual payments of $5M. 

As part of the negotiated terms, the Town of Holden is forgiving interest accrued after February 2026 and ceasing interest moving forward as payments are made, saving the municipality $4.5M in potential interest. 

“This has been a long, complex legal case,” said Batista. “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. In the coming weeks, I will bring forward a report to Council that will detail the impact to ratepayers. I look forward to working with the Commonwealth and neighboring towns to negotiate a new sewer use rate agreement.” 

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