CHAPEL HILL - The staff of the Orange Water and Sewer Authority is recommending a 25 percent rate increase for typical water customers.

The board will receive recommendations about the proposed budget at 7 p.m. Thursday in Chapel Hill Town Hall, 405 Martin Luther King Jr. Blvd. The meeting will be televised on local cable channel 18.

The Board's Budget and Financial Planning Committee will recommend holding public hearings June 12 on the proposed budget, the capital program, and proposed rates that would increase the monthly bill for a typical residential customer using 5,000 gallons by $14.51, from $58.18 to $72.69.

OWASA projects that water demand will be about 13 percent less than previously projected for next year. In recent weeks, demand has been about 25 percent below normal. OWASA is also receiving less in connection fees from new development and is seeing substantial increases in health insurance, energy and treatment plant chemical costs.

The proposed $18.4 million operating budget is about 1.3 percent more than the current 2007-08 budget as originally adopted in June 2007. To see the budget go to www.owasa.org/agenda/UploadedFiles/2008/Parts%2005-22-2008/Item%205.pdf.

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