Residents of Hudson Oaks will experience a slight increase in their water bills beginning in April.The City Council approved the rate increase at Thursday's meeting.The increase is due to the Red Eagle pump station and the Dyegard system that increased the city's capacity for providing water."Now we have it at a healthy level," Assistant City Administrator Patrick Lawler said of the water levels as a result of the new improvements.But now the city faces a slight increase in necessary revenue because of those improvements.When the city first approved of their budget for the 2012-13 year, they thought the increase would be 8 percent. But at the September meeting, they announced that after further surveys it was discovered that because of growth in the number of taps there would only need to be a 4 percent increase.In that meeting, the council considered the options of increasing the rate by 4 percent for all residents or increasing the rate by 8 percent for the top users, such as businesses.Councilman Dan David requested that another option be given.David, who could not attend the January meeting, said in September that since everyone was benefiting from the new systems, everyone should contribute.On Thursday, Lawler presented a third option that increased rates by 2 percent for lower users such as domestic residences, 4 percent for the mid-range users and about 6 percent for the top users.The City Council approved of this new option unanimously, establishing the first rate increase in three years for Hudson Oaks."This is so the lower-end users are paying their fair share," Lawler said of the raise for all residents.Those using larger amounts of water will still experience a greater increase because their usage brings an extra cost to the city.Lawler said the increase is not related to the opening of the water park this summer."This increase is related to the capital improvement plan," Lawler said.