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778 City Manager Malone presented a petition Historical Society regarding maintaining th e Station as a working fire station. from the Lamar County present Central Fire A motion was made by Councilman Jim Bell, seconded by Councilman Brown to receive the petition. The motion carried 6 ayes, 0 nays. City Manager Malone advised the Council that representatives from Reed -Stowe and Company were present to present the City of Paris 1994 Water and Wastewater Rate Study. Keith Reed and Jay Joyce presented the Council the 1994 Water and Wastewater Rate Study. Mr. Reed said if the Council will recall, some of the contracts the City has with water and wastewater customers requires the City of Paris to have outside independent rate study condupted each three years to arrive at their rates, and this is the third 'year. Mr. Reed told the Council that Mr. Joyce has prepared an overhead projector screen showing, showing many of the consumption characteristic of all the different customers classes where they be classified as residential, commercial, or industrial customer, and to give some indication as to their consumption patterns and consumption volumes over what they call a test year, that will be the proceeding twelve month period of time. Mr. Reed said that basically their rate calculations going forward will incorporate the City's test year consumption characteristics for the previous twelve month period apply that to the budget that is approved as of today to see what rates are required to be charged to fund that budget which included all operation and maintenance expense, some capital expense, salary and- related expense, as well as the debt service on bond previously sold for construction of major capital facilities with in the water and wastewater system. Mr. Joyce said they looked at the performance of revenue in the past fiscal year 1992 -93, and looking at the audit, the revenue have performed basically with a 1% variance, which is really good. They took a look at the prior fiscal year at the expenditure side and the 0 & M side. Operational and Maintenance cost were budgeted at approximately four and one -half million dollars, and the actual came in at approximately 4.3 million dollars which shows really good budgeting procedures. Mr. Joyce said in comparing the utility fund budget for last year, the total expenditures budgeted have increased over 16 1/2%. Major areas where they saw cost increase were electricity due to T.U. increase in their cost, bond issue, chemical, worker's