The Water, Gas and Light commission met Thursday morning for two hours to discuss the upcoming budget.
In the current budget, there will be a $3.6 million reduction in labor due to about 40 employees who lost their permanent jobs.
Residential customers will see a 2.5 percent increase in electricity rates and there could be an additional 2.5 percent depending on how the year goes. There will also be a 3.5 percent in water rates because the cost of living has increased.
"I feel it's very aggressive," Water, Gas and Light Interim General Manager Tom Berry said. "The folks are going to have a very tough year making this budget work but they're capable of doing that but it will be more aggressive than any budget they've ever had."
The budget now goes to the city commission on June 17th for tentative approval.