METHUEN - The City Council last night approved a water rate hike that will increase the average users' bill by $137 a year - the first water rate increase in 15 years.

The new charge will be reflected in the next bills mailed in November.

While the mayor had been pushing for a multiple rate structure - to charge more for more water use - the council last night unanimously passed a flat rate - charging all users $2.32 per 100 cubic feet.

The average bill that currently costs $181 a year will increase to $318 under the flat rate.

Councilors debated the hike for nearly four hours last night, and were one vote short in approving the tiered rate proposal before they ultimiately passed the flat rate.

Some councilors wanted to avoid setting the rate all together, further delaying the vote for at least two months - and after the November election.

Mayor William Manzi said without a rate increase, he would have to lay off nine Water Department employees and make other cuts to the department's $5.1 million budget that council approved in June. Union members and their business agent were at the meeting promising to file a grievance if there were layoffs.

About 30 people attended last night's hearing, some speaking in support of the tiered rate and others questioning the need for a rate increase at all. A group of residents hired a consultant to study the issue and asked the council to review the data before taking a vote.

Manzi said he was glad that the Water Department's budget will be stabilized with the rate hike.

"I believe the tier rate is better, but the City Council chose not to see it that way," Manzi said. "I'm guardedly pleased."

Manzi had proposed a tiered rate that charged more based on water use and would have only increased the average users' bill by $40. That proposal earned support from five councilors, but needed six votes to pass.

Councilors said approving the flat rate was a compromise. It is the first rate increase in 15 years.

"The tier rate would have benefited a greater percentage of people, but I had to reach a compromise and vote on the flat rate," said Councilor Deborah Quinn. "It would be irresponsible (not to vote) and continue the pattern of the last 15 years."

"I'm not entirely happy with it," said Councilor Ken Willette.

People who use less water will see higher water rate increases when the bills are sent in November based on the new flat rate. Those residents who use a lot of water, such as for watering lawns, will also see an increase, but it will be much less than under the tiered rate.

Councilors supporting the flat rate said that homes with larger families or people who water their lawns shouldn't be punished with a higher bill.

"I can't understand why we're penalizing people for using water," said Willette, adding that the city is below its capacity for water use and is building a new water treatment plant to expand.

Councilor Jack Cronin proposed delaying the vote for 60 days to let a task force review the proposal. But Quinn argued that the council had been working on the proposal since January and could not delay any more.

"It's an election year, but we have a job to do," Quinn said.

The council will go ahead and appoint a task force to study water rates and make a recommendation in 60 days.

Consultant Emma Donnelly said there were too many unanswered questions for the council to make a decision.

"We realize a rate has to be set," said Donnelly, who was representing "concerned ratepayers." "But we don't believe it should be done to create a surplus year after year. Our recommendation...is you review the issues and set a rate everyone is assured is fairly set."

Resident Elton McGray asked councilors to keep the rate as low as possible.

"Water used as a necessity, for drinking, bathing and cooking should be kept as the lowest rate possible, (which) dictates the tiered rate," McGray said. "Let people choose shades of brown for their lawn but keep the (charge) for necessary use low."

Resident Dorothy Kalil said commercial properties should pay higher rates. Kalil said she uses a lot of water in her home and lawn to keep the "neighborhood looking decent."

"We're already paying for it," Kalil said.

The council also approved a 10 percent sewer rate increase.