NORWAY — Norway residents will see their water and sewer rates rise beginning with the February utility bill after the city council Monday authorized the final rate increases needed to fund this year’s water/sewer improvement project.

Council members noted the sewer rate increase is slightly lower than anticipated, as the city was able to secure low interest rates on project loans.

Residential customers’ monthly water rate will go from $22 to $25, and their water usage rate will go from $5.25 per 1,000 gallons to $6.25 per 1,000 gallons. The monthly sewer rate also will rise from $22 to $25, and the sewer usage rate will rise from $8.25 per 1,000 gallons to $9.25 per 1,000.

Rates are higher for those with larger meter sizes and for Norway Township residents.

Norway’s water and sewer rates have steadily increased over the past few years in anticipation of the water/sewer project, which includes upgrading the city’s 50-year-old wastewater treatment plant and replacing old water and sewer mains that date to the 1930s.

The water and sewer main portion will cost $4.5 million, funded through a $1.2 million grant and $3.3 million loan from U.S. Department of Agriculture-Rural Development. For the wastewater treatment plant, the cost is $5.5 million, funded through a USDA-RD loan.

In other business, the council:

— Agreed to pay a total of $14,629 for the asbestos and lead inspection, asbestos and lead abatement and demolition of the former Whuh Bar at 1107 Railroad Ave.

The city purchased the building last year in a state tax sale and plans to sell the property after demolition to Habitat for Humanity, City Manager Ray Anderson said.

Pearson Asbestos Abatement of Escanaba will do the inspection for $1,668 and the abatement for $3,996, while Morin Excavating of Niagara, Wis., will do the demolition for $8,965.

“Asbestos-containing paper,” “asbestos-containing glazing” and “asbestos-containing mastic” were found in the building, according to Pearson.

— Approved a plan for the city and Norway Township to evenly split costs for the compost site on Oak Crest Drive.

Norway Township officials have not yet approved the agreement because they question the 50-50 split when the township has less residents, Anderson said.

However, Anderson noted the city and township have similar state equalized values. Also, larger properties in the township likely will have more grass clippings than a small property in town, he said in his memo to the council.

— Extended the winter tax deadline from Feb. 16 to Feb. 28.

— Appointed Mike Schalow to a three-year term on the Jake Menghini Museum Board.