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service is going about 8 to 8.7 million up to about 11 million over the five year period, which is about an average annual rate of three to four percent. Mr. McClain directed the Council's attention to page twelve, if you will compare that to when the last rate study was done, over all the cost is increased about 10 %, but keep in mind that incorporating the debt service that was issued last year, and also that is over a four year period, so that is only about an average rate of 2 %. Mr. McClain said the bottom line is that another finding, the City has the water revenue subsidizing the sewer revenue to a small extent of one - half million dollars., and on page thirteen you can see that they have developed a financial plan that actually minimizes that over approximately three years. Mr. McClain said they have a retail water only change of 2 1/2 to 2.75%, and a sewer only change of about 7 %, and the over all average bill for the residential customers will go up about 5% in this year, and the commercial customers will be a little over 5%. Mr. McClain pointed this out to the Council on page 16 of the rate study. Mr. McClain said on page 16 they have shown the typical average monthly bill, what it is and what it will change to, for example, the 5/8" meter, residential bill, which is the majority of the City's customers, your average bi_i will go from $31.02 to $32.50, or an increase of $1.48, or 4.8 %. The largest category of commercial users is again the 5/8" meter customers, and the existing average monthly bill will go from $46.15 to $48.48 for a change of $2.33, or about 5.1 %. City Manager Malone advised the City would be adopting the rate one year at a time and Mr. McClain has got to forecast based on history, and based on what they had projected what the capital needs to be as far as the plan. As you know, we have a Sanitary Sewer Evaluation Study that was required to be done by the EPA, and when that study is completed, that could have an impact on which project we fund, or whether it is going to be more sewer work than we expected. City Manager Malone advised that the City has a number of projects projected, for instance, we have a lot of water and sewer lines that are old and needs to be replaced, along with other capital expenditures to be done. City Manager