At last Thursday's board of aldermen meeting, city officials discussed an increase of slightly more than 11 percent over current rates. Final approval of the new rate schedule is expected at the Jan. 22 board meeting, according to city officials. The rate change will then take effect in the utility bills mailed out at the end of the month. The new rates, based on a 5,000-gallon-per-month average, will result in a monthly bill of $41.45 compared to the current rate of $37.10 for the same amount. Residents within the city will see their minimum water rate (1,000 gallons) raised to $7 from the current $6 level. The rate for each 1,000 gallons of consumption will also go up, from $2.90 per 1,000 gallons to $3.05. The minimum (1,000 gallons) charge for sewer services for in-city residents will rise to $7 from the present $5 basic rate. Rates for each 1,000 gallons of consumption will go to $3.05, up from the current $2.90 charge. The rates for water and sewer services for residents outside the city limits will be twice the in-city rate, as they are now. A special senior citizens rate, for residents age 62 and above, was also established. The minimum charge for water will be $6, plus $3.05 for each 1,000 gallons, while the sewer rate will start with a $5 minimum plus $3.05 for each 1,000 gallons. "The city has not raised its rates since January of 2005," said city treasurer Karen Girondo in outlining the new rate schedule. "An increase is necessary now because we just finished a $2.6 million expansion project for our wastewater treatment plant." Girondo added the rate hike was required to help the city meet its debt service obligations. Aldermen said they tried to establish a rate schedule which would have "minimum" impact on citizens. "We tried to do just enough (of an increase) to get us through for now," said board president Jim Schuchmann. "It's an unfortunate situation." Schuchmann said stricter regulations on effluent discharged into Peruque Creek mandated by the Department of Natural Resources (DNR) had forced the city to improve and expand its wastewater treatment facility. "The bottom line is that the city needs to meet its expenses," Schuchmann observed. Girondo said a sharp decline in the number of housing starts in 2008 also contributed to the rate increase. The city expected to have a minimum of 55 new homes constructed last year, but the actual number was less than 30. But city officials did say there was a possibility water and sewer rates could be changed at some point in 2009. "If building picks back up again," said Schuchmann, "we (board) could look into rolling the rates back to a lower figure."