(Atlantic) The Atlantic City Council passed the third reading adopting an ordinance increasing the sewer service charge at Wednesday night’s meeting.
During the budget review process, the council discussed that the City needed to increase its 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) will increase from $27.00 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 $5.80/1000 gallons or $0.30 over 1,000 gallons. This reflects a 5.5% overall rate increase.
Atlantic City Administrator Doug Harris says there are two primary reasons for the increase. Fiscal 2014, which begins this Monday, will be the first full year of debt service payments and operating costs for the Wastewater Treatment Plant. The debt service payments will increase by $76,961 reflecting the fact that the city will have drawn down all their State Revolving Loan Funds (SRLF) to finance the balance of the cost of the new plant at the end of this fiscal year. Because there is a 3% difference between the interest rate they receive on their idle funds and the interest rate charged on the SRLF loan they have held off drawing down the balance of the SRLF funds until the last possible minute. This strategy has resulted in a net saving of over $100,000 the past two years. The other significant cost factor generating this rate increase is the increase in the annual utility billing costs which are going from #3,730/year to $37,300/year.
June 27, 2013