Oct. 25--ASHLAND -- Borough residents will have to dig deeper in their wallets in 2009 to wash dishes, take showers and flush their toilet due to a $15 hike in their quarterly sewer bill.

Ashland Borough Council recently approved the $60 annual rate hike, placing the blame on a federal mandate to upgrade the sewage treatment plant to remove nitrates.

"The installation of the new equipment is going to cost us about $870,000," said Borough Manager Thomas Joyce at the October borough council meeting.

The federal mandate requires many sewage treatment plants to upgrade to meet lower nitrogen discharge levels in the Chesapeake Bay Basin by 2012. Earlier this year, Ashland council approved the project after lengthy discussions on whether to do the project now or wait. A major deciding factor was a state grant, which expires Dec. 31 and may not be available in the future, along with seeing the project costs increase over time because of inflation and other factors. At council's January meeting, the estimated cost for the nitrogen reduction project was $750,000.

Joyce said $352,000 of the cost will be paid through a state grant, but the borough will be responsible for the rest. He said the borough will be getting two loans: an interim loan of $352,000 that will be used until the grant funds are received, and a 15-year loan of $550,000.

"In past market conditions, we would normally get a loan for 20 or 30 years, but under current conditions in how banks are doing business, we are restricted to 15 years. That will make a larger payback every year," said Joyce. "We had to raise the rates to begin with, but I didn't think we'd have to raise them this high at $15 a quarter, $60 a year."

The increase will raise the current quarterly rate from $60 to $75, effective Jan. 1. Due to the billing schedule, the next two sewage statements will remain at $60. The statement for the first quarter of 2009 will be received by customers next May with the new rate.

Council President Michael Groody regretted the need for the increase, but pointed out that Ashland sewage customers will still pay lower rates as compared to other municipalities.

"Although we're increasing our rates by $15, we're still one of the cheapest in the area," said Groody.

"We will still be one of the lowest in the area by far," said Joyce, adding that other municipalities will need to do similar upgrades and most likely need to increase their rates.

Council approved a resolution to increase the rates in a 6-1 vote. Voting in favor were Groody, Francis Menne, Patti Wesner, Ann Marie Groody, Joseph Leinenbach and Mary Catherine Flannery.