NORTH ATTLEBORO - Water rates will increase by 16 percent and sewer rates will increase by 17 percent because of skyrocketing costs in fuel, electricity and treatment chemicals.

The board of public works approved the rate hikes Tuesday. They will go into effect for the September meter reading.

As a result of the water rate hike, the bill for the average customer who uses 90,000 gallons of water each year, will increase from $291 to $386 annually. As a result of the sewer rate hike, the bill for the average customer will increase from $350 to $451 annually.

Because most residential customers are billed for water and sewer service semi-annually, the combined increase works out to an extra $62.21 per billing.

"We understand that there have been rate hikes in other areas of consumption," board member Robert Norton said. "There's no fluff in these numbers; it's what we need to survive. North Attleboro has a good deal for its residents. We're doing everything we can in-house to minimize expenses." The increase in the water bill is almost double last year's 9 percent increase. However, the sewer rate increase is slightly less than last year's 20 percent boost.

The water and sewer budgets are both enterprise funds - meaning they have to be self-sufficient and all money collected goes back toward the expenses of running those systems.

"I know that some people may think the rates are arbitrarily raised or directly related to increases in the operating budget, but it's a little more complex than that," Public Works Director Mark Hollowell said.

The water budget includes a 23 percent increase in electrical costs for the treatment plant, a 20 percent bump in the price of treatment chemicals and a 20 percent increase in fuel costs.

In addition, a 55 percent increase was needed in health insurance costs due to a budget error the prior year and because the 2008 fiscal year revenues were not has high as anticipated.

The sewer budget includes a 23 percent increase in electrical costs, a 12 percent jump in sludge removal costs, a 25 percent increase in fuel costs and a 37 percent boost in health insurance costs.

The rates for both water and sewer are lower than those in surrounding communities, Hollowell said.

If current projections hold true, the department is expecting that water rates will increase at a smaller rate of 9 percent during the next two fiscal years.

Due to the multi-year upgrade program for the wastewater treatment plant, sewer rate increases for the next two fiscal years are projected at 16 percent and 15 percent.

The board also increased the late payment charge to $10 per bill, up from $2.50.