The Mohawk Valley Water Authority will have a public hearing Monday to inform the public about a proposed 2.5 percent rate increase the agency seeks to institute to supplement a $25.8 million budget for the 2020 year.

The rate change would equate to approximately $12.75 per year in higher water costs for the average household, or about $1.06 per month, according to the water authority. It would take effect Jan. 1, 2020.

The public hearing is scheduled for 5 p.m. Monday at the Mohawk Valley Water Authority's board room on the third floor of Utica City Hall, 1 Kennedy Plaza.

The proposal continues a trend of increased water rates: The Water Authority has increased rates each year for the last two decades. Last year, water rates went up 2 percent — or approximately $7.84 per year for the average household. The water authority provides water to approximately 128,000 customers throughout 18 municipalities in Oneida and Herkimer counties.

The proposed $25.8 million budget also accounts for the following, according to the water authority:

• A 3.2 percent overall increase in operating costs.

• Cash capital maintenance and repairs funded at $600,000.

• A projected 10 percent increase in workers compensation premiums.

• An expected 10 percent increase in property and liability insurance premiums.

• A 1.4 percent reduction in system-wide demand.

Water Authority officials said the rate increase is partially offset by a decline in debt and payment-in-lieu-of-taxes payments of $42,000. The budget also uses $865,000 in cash from surpluses in prior years, according to the Water Authority.