SEVEN FIELDS — Borough residents may end up paying more for water next year — to the tune of roughly 20 cents per person each month.

At its meeting Monday, borough council approved the advertisement of its 2021 budget for inspection, which includes a bump in water billing by 7 cents per 1,000 gallons, potentially bringing the total rate to $9.25 per billing unit.

If approved, this would be its first increase in the water cost in more than a decade.

Borough Manager Tom Smith said Seven Fields projects a 1% dip in revenue collected into its general fund in 2021, but a 1.24% increase in expenditures too.

“We've tried to hold the line on this upcoming year's budget. For the cost of living adjustment, we normally give our employees 3%. We've only increased it 2%,” Smith said. “We have not increased the millage rate in over 10 years, and we have not increased our water rates since probably before 2009. ... We've had year after year of never increasing our revenue streams.”

In addition, Smith said, the water fund, if no increases to the water rate are made, will have a deficit of roughly $75,000 next year.

While Smith called the desire to not raise taxes or the water billing rate “admirable,” he said that, at some point, it will become necessary for the borough to do so. He did not, however, propose raising the real estate tax rate, which sits at 7 mills.

“At some point in time you have to raise your millage or your water rates,” Smith said. “The question is: Do you want to do it in increments or hit your residents with a 25 cent increase or 2 or 3 mills?”

Councilman Kevin Caridad, who later voted to not advertise the proposed budget, said he disagrees with any increase in the rates, taxes or fees residents pay.

“I think we have plenty of funds where we're at to hold us over through a 1% weathering of our funds,” he said. “There's no reason to do it from my perspective.”

Council President Kimberly Regan-Koch agreed that it's unnecessary to raise the real estate tax millage — especially considering the borough will stop paying roughly $200,000 in debt service come 2023 — but added it's not unreasonable to hike the water rate by 7 cents.

“I concur with you, Kevin. Hold the line on our taxes now,” she said. “But we have to generate a revenue stream … at this point in time.”

Based on the average water use of an average American — about 88 gallons per day, according to the U.S. Environmental Protection Agency — a single person would see their monthly water bill increase by about 18 cents; a family of four would see a 74 cent hike per month.

Smith posited that increasing the water rate is more fair than hiking real estate taxes because residents have more control over their water usage than the value of their home.

“A water company, electric company, something like that to a local municipality is meant to be a revenue generator, and it's really the fairest way because people can control their usage,” he said.