AVALON — Borough Council introduced an ordinance during a Wed., Feb 8 council meeting that would result in a slight increase in the water and sewer rates.

The increase would represent the first water and sewer rate increase Avalon since 1996. The proposed ordinance was suggested following a meeting conducted by the Avalon Finance Committee which recommended the new rate structure.
The rate increase only applies to the “fixed” part of the water and sewer bill. The average residential customer will experience a rate increase of $11 per quarter, or $44 per year.

Due to a combination of factors, including the transition to a new vendor, a depleting surplus, and a subsidy from the current fund, this budget proposes a rate increase for the average homeowner from the current $139 per quarter to $150 per quarter.
The increase will be reflected in the June 2012 bill.

The rate increase will eliminate the subsidy of the current fund to stabilize the water and sewer fund balance and begin rebuilding the water and sewer surplus which is very important to the borough’s bond rating. That bond rating currently stands at a very favorable AA+, established by Standard and Poor’s.

The second reading and final adoption of the ordinance is scheduled for a vote during a Feb. 22 Avalon Council meeting. If the ordinance is approved it shall take effect as of March 19.