The city of Port Huron will enter another fiscal year on July 1st, and that day will also see water and sewer rates slightly increased. The City Council met for a special budget workshop session Wednesday, with Mayor Pauline Repp explaining that residents would see their water bills going up about two dollars a month, with the city also switching over to a monthly billing period instead of the current quarterly tabulations. The Mayor and city officials say the rate increase is needed to pay off the debt incurred by the state-mandated sewer separation work. The council will vote on approving the $21-million dollar proposal at their next regular session on the 27th. The council also set a special session for 6:30pm Monday in order to discuss the contract being offered to James Freed to become the next city manager. He was selected Saturday after a series of candidate interviews.