When Earl Austria received his first Evanston water bill in March 1999, for more than $100, he couldn’t believe his eyes.

“I thought it was a typo,” he said of the amount, which was much higher than he paid when he lived in Chicago.

Since then, Austria — and all other Evanston homeowners — have seen the base rates for their tap water climb steeply on an annual basis. As the city takes out more loans to cover a long-term sewer improvement program, it has passed repayment costs to customers.

Regina Lookis, assistant superintendent of Evanston’s water and sewer division, said although the Austrias use more water than most customers, water bills have been rising for everyone. She said this year’s hike took effect in March, just before the summer billing periods when water use is heaviest.

Austria and his wife, Erin, run a day-care service in their home, so they expect to use more water than most residents. But Earl Austria said their recent bill was “ridiculous.”

“If it’s going to go up that much, I’ll run the sewer right through my own backyard,” he said.

Austria, who lives in south Evanston, said his water bill for July and August reached $658.85.

The city sends residents one bill for the cost of water, sewage and recycling service. Water rates last increased in 1998, but sewer rates have increased every year since 1993.

Lookis said the sewer rate is $3.75 per 100 cubic feet of water used and is tied directly to sewer improvement loans.

“It’s the debt that is killing us,” Lookis said.

A total bill for 2,000 cubic feet of water would have cost $98.23 less than last year’s rates, she said. Under the new rates, it costs $105.03.

Lookis said the rate should peak next year at $4.13 and remain there until the city’s loans begin to expire in 10 years.

The sewer improvement project aims to renovate sewers that are 80 to 100 years old and have caused flooding problems, Lookis said. It is now about 75 percent to 80 percent complete.

Lookis said the city decided to pay for improvements through sewer rates rather than through general funds, so big nonprofit organizations would foot part of the bill. The nonprofits, including Northwestern, use some city services but are exempt from property taxes.

“This is one area where they do pay their share,” Lookis said.

Fred Poneman, who lives on the 1500 block of Forest Avenue, also said he noticed a large increase in his water bill.

He said the city should distribute the cost of the project over the life of the sewers, instead of tying it to loans now.

“We may not even be here in 12 years,” he said.

Poneman said he has not seen any benefits from the new sewers, but he did appreciate that property taxes were not increased to pay for them.

“It’s a hidden tax to us, but it’s a way of distributing a pill to the nonprofits,” he