Kauai residents and businesses will pay 11 percent more for water beginning Jan. 1, under rate increases approved this week.

The Kauai Board of Water Supply voted unanimously for a new rate structure that will generate enough money to make upgrades to the island’s water infrastructure. The board also voted to review the rate structure annually for possible deferrals of rate increases.

Under the rate schedule, the water rate will go up 11 percent each year through 2014.

For a typical household, the Jan. 1 rate hike will amount to a monthly increase of $4.97, bringing that bill to $49.37.

Department of Water Manager David Craddick said the increases are needed to repair the island’s aging water system, parts of which are 80 years old.

If the Water Board finds that the department is accumulating cash, rate increase deferrals would be considered. "There may be some opportunity to cut back increases in future years," Craddick said.

The Water Department held 14 community meetings in the past year to discuss its plans, as well as four community meetings and two public hearings on the rate increase proposal.

Craddick said the rate increases are needed to repay loans, keep up with needed work and keep pace with inflation. The higher revenues should allow the department to fund much of its future recurring system replacement work through cash instead of borrowing, Craddick said.

By avoiding new interest payments, the department anticipates being able to fund nearly twice as many projects.