The City Council last week approved a 2.03% increase in the 1999-2000 water rates. The increase translates to 39 cents per 16,000 gallons and will be used to cover rising costs of water provided by the county and to create a $1-million reserve to build a new well in 2003. The vote also established a new policy that will allow the city to make necessary adjustments in future rates. The city last increased water rates in September 1995. Since then, the costs of imported water and well water have increased, officials said.

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