Daly’s presentation noted needed capital improvements including a water line replacement at Jackson Gate Road and Church Street, and other replacements planned through 2010/2011. If the proposed water rates are not approved, emergency reserves for both systems will be spent down and those capital improvement projects associated with water will have to be reduced or eliminated. After reserves are depleted, money from the city’s General Fund would be used to cover growing expenses for projects required for permit compliance. After Daly’s presentation, the public hearing was opened and many comments received by the council were concerned with the impact of the rate increase on those in low or fixed income situations. City residents currently can protest the rate increase in writing. The Council voted to bring back this item to the next scheduled meeting on November 26th, and agreed to the presence of a citizen observer, Judy Jebian, to be present during the receiving/counting process of the rate protest letters.