By AARON MUELLER
Niles Daily Star

The Niles City Council approved a 3 percent water rate increase at its meeting Monday night. The rate adjustment is effective April 1.

Utilities Manager Jim Lehmkuhl said the hike is necessary to meet revenue requirements for its $5.8 million general obligation bond for the iron filtration plant built in 2005. The hike is less than the original rate adjustment projection for 2009, which was at 5.8 percent.

A wage freeze for utilities employees and a more conservative capital budget allowed the department to reduce the rate adjustment.

For the average residential customer, the hike will raise bills $0.64 a month.