Water, sewer rates likely to increase in Avalon

Written by Staff Reports Tuesday, 21 February 2012 15:01

AVALON – Water and sewer rates in Avalon are expected to increase for the first time in nearly 16 years.

Avalon Borough Council was expected to adopt an ordinance Wednesday, Feb. 22, that would raise the rate for the average residential customer from $139 per quarter to $150. That's an $11 per quarter increase or $44 a year.

The increase would take effect March 19 if borough council adopted the ordinance at a meeting Feb. 22, set to take place after presstime. A rate increase would be reflected in the April 2012 bill.

The rate increase would only apply to the fixed part of the water and sewer bill, according to a press release.

Attributed to a rate increase are a transition to a new vendor and a depletion of surplus. The increase will also eliminate the subsidy of the current fund to stabilize the water and sewer fund balance and begin rebuilding the water and sewer surplus.

Rebuilding a surplus is essential to the borough’s bond rating, according to a press release. The bond rating is at an AA-plus, established by Standard and Poor’s.

The last increase took effect July 1, 1996.