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            The Kodiak City Council Thursday night put the town on notice that water and sewer rates will be going up.

            Currently it cost $39.14 a month for residential water. Under the plan proposed last night, that would take a four-year step increase to reach $55.23 by Fiscal Year 2015. That's a total of eight-percent over four years.

            Sewer rates would go from $59.82 for residential to $62.81 for the rest of this fiscal year. That's a five-percent increase.

            Council members said the rate boost is necessary to cover increased costs and needed improvements.

            The water-sewer increases will come before the council again in September, to allow the community a chance to see the proposed rate sheets and to make comments on the increases.

            In other business, the Council also accepted a number of state grants for local construction projects. They are part of Kodiak Island's big score in state capital construction funds from the legislature. They include money for the new UV water treatment system, $1.6 million for the Pier II pedestrian walkway, and $2 million for Phase I of the Baranof Park