On or before the first day of September of each calendar year, the City Manager or his designee shall report to the City Council any modification and/or increase in the water utility rate necessary and/or desirable to meet anticipated expenditures of the utility, including but not limited to debt service, operating, replacement, upgrading, and expansion requirements projected in the ensuing year that the utility has the adequate functional capability of providing a desirable level of service to the community and the service area. [Ord. 2235 § 4, 1981; Code 1970 § 13.20.055.]