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City Council Water & Sewer Subcommittee Feb. 18, 2003 Page 6 is just the opposite. Mr. Campbell explained that Carter- Burgess has done a water loss study where they did leak detections and found out where water was leaking.. He said they gave Mr...Townsend a long list of leaks to repair, and all of that has been done. Mr. Campbell said the Lost Water Study is saying that the City of Paris has leaky lines. Mr. Jim Bell referred to the City Council minutes of January 21, 2003, page 4, middle paragraph, "Mr. Campbell said the cost for raising the water rates is not in the production end of it, it is in the debt service ". Mr. Bell said we are talking about a lot of production cost and that Mr. Campbell made that statement about debt service. Mr. Campbell said he was talking about the price of the water which has gone up $0.30 per thousand gallons as a production cost has increased since he has been with the city, of that 47% is inflation, which leaves $0.15 per thousand gallons that the production cost of water that has gone up. Mr. Bell said Mr. Campbell further said that the cost of raising the water rates is not in the production end, but in the debt service and in the old system that the city has. Mr. Campbell said that is correct. Mr. Bell said a minute ago Mr. Campbell said we have a capability today to produce 32 million gallons under the new standards and the city is producing water .09 turbidity when we are only required to produce at .3 turbidity. Mr. Campbell advised that the state wants the city to do this even though the law says .3 turbidity, they want you to maximize on the turbidity because of Giardia and Cryptosporidium. Councilwoman Neeley explained that in terms of that sentence, at the beginning of the meeting last month, each member of the committee was asked to state their goals of what they wanted from this committee and she said that most of you in this room knew what happened last time. The rates were increased in order to repair the sewer system. Mr. Campbell advised that in the past sixteen years the cost of water has gone up $0.30 per thousand per gallons and if you totally cut that out, what affect does that have on the water rates. It is insignificant. Mr. Jim Bell said we need to be looking at our debt services. Mr. Campbell went to page nineteen of his handout and stated that this is not Campbell Soup's water rates; they are all contractual. He said he had gone