A five-year water rate increase was approved by the City Council Wednesday to fund Capital Improvement Projects and operational costs. According to a report from Director of Utilities Chris McKinney, the new water and wastewater rates will increase Water Fund revenue by 5.5 percent per year over the next five years. The adjusted rates will become effective March 1 and each year thereafter through 2021. The increases, according to the cost of service study, will cover the estimated $141.5 million in capital expenditures and $75 million in proposed bonds.