DAYTON, Tenn. -- The Dayton City Council this week authorized a water and sewer rate increase ordinance and a proposed city budget of more than $47 million.

The budget is "finalized and balanced," Councilman Steve Randolph said. It will have a second reading June 27.

Departments that will receive an increase from their estimated 2012-13 budgets include the maintenance, sanitation, fire and police departments, the Clyde W. Roddy Library and the Dayton Skill Center.

Water rates will increase from $9.15 per 1,000 gallons for users inside city limits to a $10.39 minimum. Rates for users outside city limits will increase to a $15.30 minimum from a previous rate under $14, effective Oct. 1, 2013.

Also, sewer rates will increase to $5.80 per 1,000 gallons of metered water for users inside city limits, with a $12 minimum. Sewer rates for users outside the city will increase from $6.08 to $8.70.

Randolph said last year's small water rate increase had helped but a deficit had been incurred in that department.

"Utilities have to stand on their own," he said.

He said the city had major parts-replacement expenses this year at its nearly 50-year-old water treatment facility, and the council approved issuing a $6 million bond for the water department.

In other matters, a member of YMCA's Silver Sneakers class asked the council for permission to use a downtown building for exercise classes while the gymnasium is being used for other purposes.

Patty Fagan said 30 to 40 seniors would like to use the space for their classes until Aug. 31 or "possibly longer."

City Manager Frank Welch told council members that the YMCA had used the facility last year.

"They're going to need to sign a lease agreement, if it's extended use," City Attorney Susan Arnold said.

The Silver Sneakers class, comprising mostly people 60 and older, meets three times a week at 10 a.m., Fagan said.

Kimberly McMillian is based in Rhea County. Contact her at kdj424@bellsouth.net.