Those within the Village of Northport will see an increase by $20.48 to the debt collection portion of their quarterly sewer bills after the village council approved a resolution establishing the rates at its regular meeting on July 17. The increase to the sewer debt service fee, which is anticipated to go from $87 to $107.50, goes into effect with the July 20 billing cycle and will continue for the remaining 10 billing cycles until the sewer bond debt is retired in March 2028.
In village manager Jered Ottenwess’ July 3 report to the council, he relayed that the bonds that paid for the sanitary sewer system are due to mature in 2028. Revenue collected from special assessments and rates are projected to be insufficient to completely pay the “bond indebtedness,” and will ultimately lead to the Sewer Debt Fund having a projected shortfall of $118,575 by 2028. That projected shortfall by 2028 divided by 526 residential equivalent units (REU) equates to a $225 shortfall per REU. An increase of $20.48 per REU starting with bills that would be sent out around July 21 would cover the shortfall over the remaining 11 quarterly billing cycles.
Trustee Laura Cavendish commented on the action during the sewer rate discussion at the council’s regular meeting, noting how the longer they wait, the more the rates would increase. In the village manager’s July 3 report, it stated that if rates are not increased starting with the upcoming billing cycle, the amount required to cover the shortfall would increase with each subsequent billing cycle.
