SAXONBURG — Sewage bills for Saxonburg Area Authority customers will rise nearly 10 percent in 2014.

The authority board on Monday approved an operating budget of $4 million that included new rates of $17 per 1,000 gallons of water used for metered customers and $70 for flat-rate customers.

The new rates are an increase of $1.50 for per 1,000 gallons for metered customers and $6.17 for flat-rate customers.

Paul Cornetti, authority manger, said in an interview the rate hikes are needed to cover expenses.

“The rate increase provides revenues to accommodate our required maintenance in the system as well as meet our debt service obligation in upcoming months,” Cornetti said.

The authority pays $1.3 million each year on a $20.4 million bond used to help fund a service expansion into Penn and Middlesex townships and refinance old debt.

According to Cornetti, the more than $900,000 March 2016 payment on the 2006 bond could not be met without the rate increase.

The authority has 3,350 customers. Of that total, 1,200 use meters.