ANDOVER — The average resident will pay $32 more on their water bill beginning Dec. 1.

The Board of Selectmen unanimously raised the water rate Monday night from $2.65 per 100 cubic feet to $2.92.

The average annual household water bill in town is now expected to increase from $318 to $350.

Selectmen also raised the water rate in July 2008. The 13-cent hike was the first increase since 1994.

"Although this comes on the heels of the prior rate hike, in general I think we've been very lucky that we haven't had a steady increase over a longer period of time," said Selectman Jerry Stabile.

The $350 average annual water bill positions Andover in the middle of the pack when compared with area communities, according to the 2009 Massachusetts Water and Sewer Rate Survey.

The average water bills in North Andover and Lawrence are $508 and $360, respectively. In Haverhill, the average water bill is $299. In Methuen, the average resident pays $259.

Town Manager Reginald "Buzz" Stapczynski proposed the 27-cent rate increase to help cover costs in the Water Department and to replenish a depleted water reserve fund.

Andover drew $1.2 million from water reserves in the fiscal year that ended June 30, using the money to pay for capital projects and compensate for a drop in Water Department revenue.

"The only immediate thing we could do was to adjust the rate," said Stabile. "We need the revenue."

Water production peaked at 2.4 billion gallons two years ago, only to drop off by 200 million gallons in the fiscal year that ended June 30. Contributing to the drop in consumption was a rainy May and June.

Selectmen also were presented this week with a five-year budget plan by Andover Finance Director Tony Torrisi that proposes water rate increases in four of the next five years.

The water rate would eventually reach $3.22 per 100 cubic feet in fiscal year 2015. The plan requires approval from selectmen, who also serve as water and sewer commissioners for the town.

The average Andover household uses 90,000 gallons of water each year, or 12,000 cubic feet, according to public works Director Jack Petkus.

Andover sells water to neighboring towns, including North Reading. Selectmen also voted Monday to increase the out-of-town water rate from $3.18 per 100 cubic feet to $3.50.