By AARON MUELLER

Niles Daily Star

Just two months after Niles residents saw a 4.5 percent increase in electric rates from the Niles Utilities Department, the Niles City Council unanimously approved a 3 percent wastewater rate adjustment Monday night.

The hike will take effect Aug. 1 and will mean a 71-cent per month increase for an average residential customer using seven units or 5,250 gallons of water.

The increase will help the city pay off a Michigan Department of Natural Resources and Environment State Revolving Fund loan and the interest that is set at 2.5 percent. The loan will help the wastewater division to complete a $7.6 million capital improvement program of its treatment plant.

The 3 percent hike is one of a series of stepped increases in wastewater. A 3.5 percent rate adjustment is recommended to take place in 2011 and 2012 with a 4.5 percent increase for 2013 and 2014 and a 5.5 percent increase in 2015.

The city also increased water rates 3 percent in April.