(ATLANTIC) The Atlantic City Council approved the first reading of an ordinance pertaining to sewer service charges at their meeting Wednesday night.
During the budget review process the City Council discussed that the City 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. 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.
“I hate to raise fees at any time, but if you’ve got to raise them I suppose $1.50 is a pretty small raise,” said Steve Livengood, Councilman.
“I think most of this stuff we talked about back when we started doing this, once we got everything stable there was going to be some minor increases,” said Mayor Dave Jones. “We had some pretty big jumps, now we’re back to just more managing the rate system and a $1.50 is a better rate than $10.50.”
“We do have kind of a break down on that, the majority of that cost increase is just debt service for paying off the bonds for construction of the new sewage treatment plant,” said Shawn Shouse, Councilman. “There is a little bit of other overhead cost that increased that are in there too, but 63 percent of that is just debt service increases.”
The other significant cost factor that is affecting this 5.5% rate increase is the increase in the annual utility billing costs which are going from $3,730/year to $37,300/year.