Some of Selma Water Works’ customers might be surprised when they see an increase in their water bill for the month of June, but it should be something people in Selma are used to seeing this time of year.

The annual increase, which is 2.5 percent, is something the Selma Water Board has done for nearly 10 years.

“It helps pay back bonds,” said Robert Allen, chairman of the water board. “That’s the purpose of the rate increase. We’re making sure that we have the ability to repay our loan.”

Selma Water Works received a bond issuance of nearly $10 million in 2006 to upgrade its aging facilities.

“There were some things they had to do to upgrade the facility,” Allen said. “They were dealing with an over 40-year-old system with old piping and even the wastewater distribution center facility needed some upgrades.”

The bond required the board to increase the rate every year to help pay it back.

“Over the course of repaying this bond issue, they made a covenant that the raise would take place on an annual basis,” Allen said. “When you look at the amount of interest that we have to pay on our bonds, that is one of the driving factors. They did not include anything else, just having enough money to pay the interest of those bonds.”

While the increase might seem like a lot to some customers, Allen said it’s a bargain for upkeep.

“I’ll use myself as an example, it is less than a dollar a month for the upgrading of the facilities,” Allen said. “We live in a society where you pay me now or pay me later. It is not a whole lot for the amount of work that needed to be done to our facility and to keep them in compliance.”

Allen said the upgrades go hand in hand with an old city like Selma.

“Selma is an old city, and if you really don’t put money into equipment or facilities, then it is not going to last long,” Allen said.

“A lot of cities are having the same issues. Some of them may have already had the funding and didn’t have to borrow it, but we had no other choice but to borrow the money to get the work done.”

There are a number of factors that go into the cost of water, but the only one that factors into yearly 2.5 percent increase is paying back the bonds, Allen said.

“When you look at the amount of interest that we have to pay on our bonds, that is one of the driving factors,” Allen said. “They did not include anything else, just having enough money to pay the interest of those bonds.”

Allen said the bond agreement had a 30 year pay back plan, and the rate increase will continue until the nearly $10 million is paid back.