Until construction picks up in the city, Villa Rica officials say they must continue to increase water and sewer rates to fund the new state-of-the-art wastewater treatment plant.

When financing the $32 million wastewater treatment plant that is expected to be complete in 2011, city officials promised Moody’s Investor Services and the bond issuers that the city would fund the bond payments with revenues from new water and sewer taps. As a back-up financing plan, the city agreed to increase water and sewer rates if needed to make up for lost tap revenues during the troubled economy.

Water and sewer rates were raised 10 percent Tuesday as part of that plan and if construction doesn’t pick back up there will be a 15 percent increase next year and another 5 percent increase the following year.

“If the growth comes back, and we’re optimistic it will, there’s no reason why that water rate can’t be readjusted, in my opinion,” Mayor J. Collins said. “If I’m sitting out there in the audience, I’m mad that my water rate just went up because I pay this too, and I understand that, but I hope people look at the bigger picture and see that over the last several years we’ve cut the budget, we’ve eliminated positions we didn’t need, we’re trying to be fiscally responsible with the city’s money, but it was a numbers game for us and sacrifices have to be made when you reinvest in your infrastructure.”

Councilman Woody Holland pointed out that by promising to fund the plant with increased water rates if there weren’t enough tap fees to make the monthly payments, the city received a much better interest rate on the plant’s financing.

“We saved millions on interest rates over the term of the bonds,” he said. “It was a tough pill to swallow up front, but it hopefully will have some long-term benefits to the city.”

According to city statistics, an average residential water and sewer customer using 4,800 gallons of water per day will see an increase in rates of $3.48, to $51.23 per month. Comparatively, customers in Temple using the same amount would pay $56.80, those in Carroll County would pay $51.88 and those in Carrollton would pay $38.07.

“We’re pretty much in line with everyone else except Carrollton, and Carrollton had the foresight a long time ago to do their thing with grant money and everything else,” Councilman Verland Best said.

City Manager Larry Wood said this year’s increase would raise an additional $300,000 in revenues for the city.

Collins said he’s been dedicated to putting more money in reserves to keep from having to raise property taxes to fund the wastewater plant.

“We have about $8 million in cash reserves and that will get us through the tough times,” he said. “I’m upset we’ve got to pay more because I pay water and sewer and it’s going to cost me more money too, but there is a bigger picture there.”