A letter from Hutto Mayor Doug Gaul is being distributed Tuesday through different newsletters and social media operated by the city.

The letter is in regard to water and wastewater rates, a topic at the April 6 Hutto City Council meeting. Rates are expected to rise 15 percent by June.

It reads: “As we begin the process of reviewing and setting the budget for the next fiscal year, it is clear that we must deal with the Heart of Texas contract that we inherited. As we set the rate, we must make sure that we establish a rate that collects enough revenue to provide our citizens with good quality water, meet state legal requirements, and protect the overall credit rating of the city. Water and wastewater revenue is used for not only paying for the water (based on a contract approved in 2004) but includes paying for maintaining existing water and wastewater lines and extending new lines to drive economic development in the city as we continue to grow. As we reach a certain level of population, we were required by state law to build a second wastewater treatment plan to meet the needs of the city, and a portion of the wastewater revenue is used to pay off that debt.

“Additionally, due to the requirements of our current contract with Heart of Texas, the council is faced with the need to raise rates. This is something we are reluctant to do. However, our citizens deserve and expect to have good quality water and sewer services when they need it, so it is our obligation to make sure we can provide and pay for that while protecting the city’s overall credit rating. The council members and I are residents and business owners, and we will feel the pain as well.

“With that in mind, this council is not going to sit quietly and accept a rate increase every year. We must do something to get our utility costs stabilized; therefore, at our council meeting on April 6, we took steps to begin the process of finding ways to lower the utility costs. In order to stabilize our water and wastewater rates and to remain competitive, we need to manage our expenses, continue to push economic development and relieve Hutto of the current water contract.

“We are directing the city manager to negotiate and determine if we can purchase the water system. But if we cannot reach an agreement for the city to purchase the system,  then we as the City Council must direct the city manager and the city’s attorneys to bring whatever actions are necessary to reduce the water rates and get the city out of this contract that was executed in 2004. Because of this contract with Heart of Texas, it is hurting the city’s taxpayers now, and in the future, and is stifling the city’s ability to grow.

“I want to assure the residents of Hutto that we, as City Council members and residents of Hutto, hear and feel the pain of water and wastewater rates increasing every year, and we are committed to addressing the issue.”