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Regular Council Meeting June 23, 2014 Page 5 Visitor and Convention Council: Mayor Frierson said in addition to the Mayor, one Council Member was to serve on the VC &C. Mayor Frierson nominated Edwin Pickle. Motion carried, 6 ayes — 0 nays. Ark -Tex Council of Governnments: Mayor Frierson said in addition to the Mayor, one Council Member was to serve on ATCOG. Mayor Frierson nominated Council Member Hashmi. Motion carried, 6 ayes — 0 nays. 13. Discuss and act on an ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AMENDING SECTIONS 34- 22(b), WATER RATES, SECTION 34- 23(a), (b) AND (c), SEWER RATES, TO REFLECT CHANGES RECOMMENDED BY THE 2014 WATER AND SEWER RATE STUDY; PROVIDING A REPEALER CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A PENALTY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE. A Motion to remove this item from the table was made by Council Member Pickle and seconded by Council Member Lancaster. Motion carried, 6 ayes — 0 nays. Finance Director Gene Anderson explained that current rates for non - contract customers were determined not to be sufficient to generate the necessary revenue for the Water and Sewer Fund, primarily due to a reduction in consumption by contract customers and the increased efficiency of the contract customers in using the water system. Mr. Anderson said staff recommended the increase based on the necessity to maintain the financial integrity of the fund. Council Member Plata said he thought that the City departments that dealt with water and sewer should look for ways to be more conservative and more efficient. Council Member Hashmi inquired if part of the reason for recommending the rate increase was to keep a good rating and Mr. Anderson said that was correct. Mr. Anderson also said it was important for the City to follow its own policy, or the City would be downgraded. Mayor Frierson inquired about the effect of J. Skinner and Mr. Anderson said their current water usage was included, but they could not estimate the future usage. Mr. Anderson stated that around the year 2000, the City went through the worst situation, because they were operating in the red and nearly had to borrow money from the bank to operate water and sewer. He said at that time there had been several rate studies and it was recommended that rates be increased, but that the Council did not approve a rate increase and that is why the City got in that type of situation. Council Member Hashmi wanted to know how it would affect the City if they tabled this item until October, which would give them a chance to review summer usage. Mr. Anderson explained that when the study was conducted, the consultant reviewed three years of data. Mayor Frierson said he was comfortable with approving this at a later date. Council Member Lancaster said she had a problem with raising rates. Council Member Plata said last time he was on Council and the rates were increased, that the public blamed the Council and he would like for the public to know if the rates are increased that it is done so at the recommendation of staff.