(ATLANTIC) The Atlantic City Council will hold the first reading on an ordinance pertaining to sewer service charges at their meeting tonight.
During the budget preview process the City discussed that they will need to increase the sewer service charges to fund debt service and operating costs of the new Wastewater Treatment Plant. The monthly base fee for up to 3,000 gallons needs to increase from $27 to $28.50 or $1.50/month. The monthly service fee for all additional usage over the 3,000 gallon base will increase from $5.50/1,000 gallons to $5.80/1,000 gallons, or 30 cents per 1,000 gallons.
FY2014, which begins July 1st, will be the first full year of debt service payments and operating costs for the new Wastewater Treatment Plant. The cities debt service payments will increase by $76,961, reflecting the fact that they did not draw down all of their State Revolving Loan Funds or issue Revenue Bonds to finance the balance of the cost of the new plant until towards the end of this fiscal year.
The other significant cost factor that is affecting this 5.5 percent rate increase is the increase in the annual utility billing costs, which are going from $3,730/year to $37,300/year.