CHAPEL HILL -- The Orange Water and Sewer Authority approved an average 17 percent hike in water and sewer rates Thursday night.

The board voted 6-2 to approve the increase, which was down from the utility's initial 24 percent proposed increase. Board Chairman Randy Kabrick and board member Braxton Foushee voted against the new rates.

OWASA says two factors are driving the increases: lower demand as customers use less water, and less revenue from connection fees because of the slow economy.

In an interview, executive director Ed Kerwin said current rate projections show another 17 percent increase next year, though that will depend on water sales.

The new rates support an $18.4 million operating budget and $13.8 million capital program including more odor-elimination work at the Mason Farm Wastewater Treatment Plant. Residents had urged the board to keep that project in the budget at a June 12 public hearing.

Different percentage increases will apply to different rates under the new budget. The actual increase that customers will see will depend upon the amount of water they use, the type of customer, and the size of the meter serving their home or building.

The monthly bill for an individually metered residential customer using 5,000 gallons will increase $10.06, from $58.18 to $68.24 starting Oct. 1.

The 24 percent increase would have meant a monthly bill increase of $14.51.