Kenosha residents can expect a 3.8 percent increase in water and sewer rates in 2010, though officials say the city’s rates will remain among the state’s lowest.

The average city household, which uses about 7,480 gallons of water a month, could expect a monthly sewer and water bill of about $45.85 in 2010 under the proposed increase, up $1.68 from 2009. Rates increased by 3 percent this year.

Action on the rate increase by the Board of Water Commissioners was deferred Monday until Nov. 2, due to several commissioners needing to attend another meeting.

Ed St. Peter, general manager of the Kenosha Water Utility, told the board Monday that only 6 percent of the municipalities in the state had lower rates than Kenosha in 2008. The proposed increase should keep the city among the lowest 10 percent, he said.

“We have some of the lowest rates in the state, and the state has some of the lowest rates in the world, or at least the country,” St. Peter said.

Next year would be only the second water rate increase in Kenosha since 2004.

St. Peter said the utility’s reserves were down to about $5 million or $6 million, and the utility has cut its budget for replacing water mains from $1 million this year to a proposed $350,000 in 2010. Those factors may lead the city to consider selling bonds or raising rates higher in the near future, St. Peter said.

But St. Peter said the city was fortunate to have newer facilities and no worries about aging buildings at this time.

“It’s not all doom and gloom for us,” St. Peter said.

Budget decrease

Meanwhile, the Water Utility’s operating budget for 2010 is proposed to be about $1 million less than this year.

The utility, which is a separate entity from the city, is considering having employees take five furlough days next year and no wage increases. The move would save about $112,313, officials said.

Most other city employees are also taking five furlough days next year.

The commission suggested waiting on action for Water Utility furloughs until the city budget is finalized.

Expected increases for the utility include a higher price for chemicals and more workers’ compensation costs.