Brownwood City Council members approved Tuesday the issuance of $3.44 million in certificates of obligation to fund state-mandated renovations to the city’s waste water treatment plant and pay engineering costs associated with another project.

The renovations are the first of two projects totaling $12 million that will be funded through the Texas Water Development Board, Finance Director Walter Middleton told council members.

The second phase — the construction of a Supplemental Water Treatment Plant — is expected to cost $8.92 million.

The renovations to the waste water treatment plant are necessary in order to have the permit renewed by the Texas Commission on Environmental Quality, Middleton told council members.

The $3.44 million includes $360,000 that will be reimbursed to the city for engineering fees already paid for the planning and design of the Supplemental Water Treatment Plant.

The payment on the debt will be funded by an increase in sewer rates beginning in fiscal year 2013-14, council members were told. It is projected that a 6.7 percent rate increase will be needed, which will cost an average household an additional $1.52 per month, Middleton told council members.

In other business, council members:

* Approved ordinances on first readings to change the zoning of several properties to A1 Agricultural District.

The locations of the zoning changes are 901 Spruce St.; 304 Bailey St.; 1314 Willis St.; 609 Idlewild St.; and 611 Idlewild St.

* Approved an ordinance on second and third/final readings approving the Fiscal Year 2011-12 budget amendments, which resulted in a net increase in expenses of $187,890.

* Approved an ordinance on second and third/final readings establishing one-way traffic in the alley between 12th Street and 13th Street, from Avenue E to Coggin Avenue.

* Agreed to participate in the Texas Department of Transportation Enhancement Program for funding for the Camp Bowie Walking Trail.

* Agreed to cancel the council meeting that would fall on the fourth Tuesday of December — Christmas Day.