Falls City Councilor Cynthia Jaksa announced Monday that city water rates could increase by as much as 12 percent.

“We are not meeting our costs in the water department,” Jaksa said. “We will need to adjust our rates.”

She continued that a formal study will be done to support the decision to increase the rates and the increase could happen “very soon.”

“We are running a deficit at this point,” Jaksa said.

No formal action was taken by the council.

In other business Monday, the council agreed to grant Tracy Carlson a conditional use permit to operate a hair salon out of her home located at 1904 Eighth Ave.

The council’s agreement was contingent on Carlson maintaining the proper licensing and meeting necessary state codes to operate a business out of her home.

Carlson told the council she was requesting to work out of her home because of health reasons that interfered with long periods of standing.

“I have been a hairstylist and salon owner and have managed three salons during the past 28 years,” she said of her experience.

Carlson assured the council that her neighbors are aware of her intentions to run a business out of her home and that their privacy would not be disturbed.

The council wished her luck on her new venture.

In other business, resident Bob Dunbar complained to the council about traffic noise near his home on 17th Street.

“It’s an everyday thing,” Dunbar said of the noise.

Dunbar continued that he has complained to law enforcement before, but there are “no changes,” he said.

Police Chief Mike Musich explained that his officers are aware of the situation and are doing their best to patrol the area.

Councilor Tim “Chopper” McBride told Dunbar, “You have got to complain every time.”

Dunbar provided Musich with a list of license plates on vehicles making a majority of the noise.

Mayor Shawn Mason told Dunbar his concerns are not falling on deaf ears and city officials and police officers will do what they can to try to resolve the issue.