The Atlantic City Council will discuss and act on the first reading of a 5.5-percent rate increase for sewer service during their meeting this evening, at City Hall. City Administrator Doug Harris says if approved on the third and final reading, the monthly base fee for usage up to 3,000 gallons will increase $1.50 per month, from $27.00 to $28.50. Additional usage above 3,000 gallons will increase 30-cents, from $5.50 to $5.80 per thousand gallons over 3,000.
Harris says the increase is needed to fund Debt Service and Operating costs of the new wastewater treatment plant. He says Fiscal Year 2014, which begins July 1st, 2013, will be the first full year of debt service payments and operating costs for the plant. The City’s debt service payments will increase by more than $76,961, which reflects the fact the City did not draw down all of its State Revolving Loan Funds (SRLF), or issue Revenue Bonds to finance the balance of the cost of the new plant until near the end of the current fiscal year. Another factor influencing the proposed rate increase, is an increase in the annual utility billings, which will jump from $3,370/year to $37,300/year.
In other business, the Council will hold a public hearing on the sale of a lot at 314 Walnut Street, followed by action on a resolution approving sale of the property for $30,000 to a local man, who wishes to build a restaurant/sports bar on the site, with future plans for office space and luxury condominiums on the upper floors.
And, the Council will act on resolutions approving the issuance of General Obligation Bonds for $2.7-million, along with a bond purchase agreement not to exceed $7.05-million, for Sewer Revenue Bonds. The Atlantic City Council meeting begins at 5:30-p.m.