BOONSBORO — The Boonsboro Town Council passed a sewer rate increase Monday night, but customers actually will see a $9 reduction in utility bills under a budget plan approved by council members.
The town had a $1.4 million loan for two water filtration plants, and the loans were not scheduled to be paid off until 2015, Town Manager Debra Smith said.
But because the loan will be paid off at the end of the fiscal year, the council decided to remove a $19 debt service fee that had been charged to town residents, Smith said.
To offset costs in the town’s wastewater treatment system, the council approved rate hikes for residential and commercial sewer service.
Both residential and commercial sewer service will increase from $56 to $66 as the minimum charge for the first 10,000 gallons used.
Because the $19 debt service fee is being removed and the sewer rate hikes are only $10, sewer customers will see a $9 reduction in their bills, Smith said.
The sewer rate hikes and the elimination of the debt-service fee were included in the fiscal year 2013 budget package.
The town’s tax rate will remain the same under the budget package, Smith said.
There were public hearings Monday night about the budget package, but no one spoke.
The general fund budget is about $1.5 million, the water budget is about $428,000 and the sewer budget is $549,366.