No comments were made from the audience during the public hearing held regarding the rate increase.
A second reading of the ordinance is scheduled for June 19. If adopted, the rate increase would be effective June 19, with a first billing date of Aug. 1.
Also at the meeting, the council reviewed water rate fees for mobile home parks.
At its last meeting, several Tangerine Gardens Mobile Home Park residents appeared before the council regarding a change in billing and rate increase in water fees.
A software glitch and staff error excluded most mobile home parks from water rate increases four years ago. A new $29.39 monthly flat rate will replace the metered rates for which the mobile home parks have been billed.
City officials estimated the city lost $30,000 for each year that the mobile home park residents were excluded from the rate increase.
Several mobile home park resident spoke before the council, saying the flat rates were too costly. Residents also said because they conserve their water usage, the flat rate would bill them for water they didn't use.
Staff presented the council with three compromises that would gradually increase park resident's flat rate over three years.
At the suggestion of Carrillo, the council voted to use the second compromise, which limits the increases to 30 percent per year.
The council also directed staff to review the billing system for the mobile home parks and seek a system that would please all parties involved.
City Manager Jerry Santillan noted an upcoming water rate study the city has contracted out and said the mobile home parks will be included in the study.
Johnson directed staff to look into the cause of park residents exclusion from the rate increases as well as other possible revenue losses and "software glitches" that may have excluded other residents from rate increases.
Staff Writer Anthony Longoria can be reached at 337-3452.