DANVERS — Even though residents are using less water, the cost to run the water system is going up, Town Manager Wayne Marquis said.

At a meeting at 7 tonight, Water and Sewer Commissioners will consider several rate scenarios to vote on, before Marquis sets the rate.

"Our efforts to conserve water have been successful, and that's a good thing," Marquis said.

However, that means the town is selling less water, while the fixed costs to run things are going up.

This fiscal year, Danvers residents used 133.4 million cubic feet, a drop of 6.6 million cubic feet, or 4.7 percent.

Despite the drop, the Water Division plans to spend nearly $6 million in fiscal 2010, which begins next week. It's an increase of 4 percent over fiscal 2009. Costs of electricity, chemicals to treat the water and employee compensation have all increased.

Marquis said he expects the water rate to increase by about 4 percent.

The rate applies to the households of approximately 7,000 residents in Middleton and 26,000 in Danvers, as Danvers supplies water to both communities from reservoirs and wells that are mostly in Middleton.

A tiered rate structure encourages water conservation: Residents get a price break on the first 2,000 cubic feet, nearly 15,000 gallons, they use each quarter. The next 400 cubic feet carries a higher rate; the rate goes up even more, after 2,400 cubic feet.

Sewer rates are also being set tonight. The Sewer Division's budget weighs in at $5.4 million, an increase of 3.2 percent, Marquis said. Much of the cost is for treatment by the South Essex Sewerage District, Department of Public Works Director David Lane said.

The meeting is in the Department of Public Works business office conference room, 2 Burroughs St.

Staff writer Ethan Forman can be reached at 978-338-2673 or by e-mail at eforman@salemnews.com.

water facts

100 cubic feet of water equals 750 gallons.

The average Danvers water user pays $134 for water and $167 for sewer each quarter.

Residents' yearly average use is about 12,000 cubic feet or 90,000 gallons.

Sources: Town of Danvers, various Web sites.