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1 percent and sewer rates by 3 percent for city residents.

Council members Marguerite McNiven, Virginia Bissett and Steve Polewach

voted against the rate increase. Council members Keith Costine, Lupe Vandercook and Rick Cook supported the raise.

Mayor Tom Lukshaitis broke the tie with a yes vote.

Costine explained that a rate increase would shrink an expected budget shortfall created by the waste water treatment plant.

"Water and sewer need to be self-sustaining projects," he said. "If they aren't then they start to drain the city's general fund."

The rate increases will begin on Dec. 1, and appear on the quarterly bill in March.

"The average user will see their bill increase by about $1.22 per month," Costine said.

After lengthy debate, Councilman Polewach voiced his frustrations. "I would like to see if Council could cut the budget by 10 percent."

"Council is always looking to do that," Councilman Cook responded.

Council then passed a motion by Costine directing Polewach, chairman of the finance committee, to look into reducing costs in the waste water plant.

"I'm going to be asking tough questions," Polewach promised.

In other business, council unanimously passed a resolution that

requests the Michigan Department of Transportation and the Michigan

State Police to conduct a speed study on M46 - West Sanilac Avenue

from the west city limits to Dawson Street.

MDOT and MSP will gather driving data to make a decision which could

raise, lower or maintain the current speed limit in that area. The

resolution is clear in stating that the city will have to abide by the

decision.

"The state police will have a lot of say in this matter," Lukshaitis explained.

The fire hall lease was again put on hold while Bissett's committee holds discussions on the matter.