NORWAY – For the first time in nine years, customers of the Norway Water District are facing a rate increase.

A public hearing on the revised rate schedule will be held at 4:30 p.m. Monday, June 21, in Norway Town Hall.

The district is seeking approval from the Maine Public Utilities Commission to raise rates across the board by 20 percent to generate $59,258 a year more to cover increased debt service.

The district currently generates about $300,000 a year in revenue through its 13 miles of lines around the village.For residential users, the increase would mean that the minimum charge on 5/8-inch meters will increase from $29.80 per quarter to $35.76.

Although residential users make up the largest share of water district customers, the single biggest ratepayer is the town of Norway, which pays for public buildings and hydrants.

Under new PUC regulations, public fire protection charges need to total 30 percent of the district’s revenue.

Ryan Lippincott, water district superintendent, said the increase will help the district pay for construction of new water lines on Main and Beal streets. The district also paid $100,000 for a building on Cottage Street that now serves as its headquarters.

After receiving a $215,000 Rural Development grant and $100,000 in state Community Development Block Grant funding, the district needed to borrow $700,000 to cover construction costs, Lippincott said.

Even if there had been no construction, a rate increase has been looming, he said. The district lost money the year before last, and last year it barely broke even, he said.

Whenever the town does road work, the district assesses whether to redo its lines. That way, the pavement does not need to be torn up unnecessarily.

“If we went in and did a street by ourselves, it would cost a lot more,” he said.

The last time the district increased its rates was Feb. 1, 1995. The additional $59,258 in revenue would come from $26,720 in residential class use, $17,720 in public fire protection, $10,015 in commercial, $2,752 in private fire protection, $1,491 in governmental, and $560 in industrial use.

Members of the district’s board of trustees and water district staff will preside at the hearing. More information may be obtained by phoning the district at 743-2414.