The City of Niles’ Utilities Department’s water rates continue to climb.

The Niles City Council voted unanimously Monday night to approve a water rate increase of 3 percent effective April 1.

The hike comes after a 3 percent increase last year.

The city had Utility Financial Solutions complete a study of rate projection and cost of service in 2010. The study recommended a series of stepped increases with 4 percent increases coming in the years 2012 through 2015.

The rate increase will amount to 66 cents per month for the average city customer using seven units or 5,250 gallons of water.

City Administrator Terry Eull said the increase was necessary given the 6.6 percent decrease in water usage over the last year.

Council member Bruce Williams asked for the reason in the drop-off in usage.

“When you lose Tyler’s (Refrigeration) and lose 600 residents (according to 2010 census data), it’s less people and less usage,” Eull said. “Maintenance costs haven’t decreased. It’s a never-ending battle.”

The rate increase will help fund the division’s operating costs, payments on the $5.8 million general obligation bond and the five-year capital improvement program. The bond is for the iron filtration plant built in 2005.

Firefighter grant

Also on Monday, the board unanimously approved accepting a $22,000 grant from the National Fire Department’s Assistance to Firefighters program for the purchase of lightweight firefighter gear. The city will provide a local match of $2,400.

For the past several years, the city has been trying to obtain funding to get the gear, which can be used for most calls other than structure fires. The funding will allow for the purchase of 30 suits, enough for all paid and on-call firefighters.