Water rates in Phoenix are going up in two months.
City Council members voted 5-4 Wednesday to raise water rates for about 430,000 households and businesses with city utility service.
The average Phoenix resident will pay $1.59 more per month on their water and sewer bill starting in March.
The 2.6 percent hike will be followed by an additional 2 percent increase in 2017.
This year's increase will bump the average residential bill to about $59.77 per month.
Phoenix hasn't increased water or sewer rates for three years, but city officials say the water system is operating at a loss.
Officials say the city avoided increasing its rates in recent years by drawing down its water reserve funds and refinancing bonds to save money.