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City Council Water & Sewer Subcommittee Feb. 18, 2003 Page 7 back to 1985 and looked at the water rates and compared for 5,000 gallons, which is a typical user in the City of Paris, and in sixteen and a third years the water rate has gone up $5.61 or $0.34 per month per year on the water. He said that is not even keeping up with inflation on the water side. Mr. Campbell said on the wastewater end, the sewer increase in that time is $12.10 or $0.74 per month per year, which is a 139% increase, which really does not mean a lot. He said the over all increase in the lower right hand corner for water and sewer has gone up $17.70 which is $1.08 per month per year for the last sixteen and a third years, and he did not think that is going to kill anyone in this town. Mr. Bell said that needs to be looked at because when you look at that, you will have to turn around and tell the people they have to face a rate increase. Chairman Plata felt there is a way to try to get leaner that would drive the water and sewer cost down. Mr. Johns wanted to know what the percentage of labor and benefits were. Mr. Anderson advised that on the water side labor and benefits are 20.4 %, and on the wastewater side labor and benefits are 33.3 %, which includes the Lift Stations. Chairman Plata stated that he did not want anyone to lose their job, but he felt that too many people have been hired out there. He did not see how other cities are doing the same thing with a lot less personnel. Mr. Campbell said they are not doing the same thing that the City of Paris is doing. Mr. Campbell said no city on that list is producing 11.6 million gallons a day. Mr. Anderson stated that they were asked at the last meeting to produce a breakdown, just as a percentage, what the budget costs were, and this somewhat goes back to what Mr. Bell was asking about the debt service. Mr. Anderson advised that on the water side the debt service represents 34.3% of the rate and on the wastewater side the debt service represents 29.3% of the rate. Mr. Anderson said to answer the question of what is driving the cost and why a rate increase is needed, in 2001 the city was under an EPA administrative order and the city was required to do an $800,000.00 study. The City Council issued 9.5