Hutto sewer rates will jump 16 percent and water rates will hike 7 percent in June. A similar hike is on tap for August.

City Manager Odis Jones said a poor contract with the Heart of Texas Water Suppliers L.P. is the cause for the large increases. Jones confirmed in April the city consumes roughly 800,000 gallons of water per day—but pays for about 3 million gallons daily.

Mayor Doug Gaul explained the issue in a letter to residents, while the City Council on April 21 gave Jones direction to begin negotiations and execute a contract to purchase the water system. The purchase is not to exceed $63 million.

The increase passed after the second reading of the ordinance to increase rates by a 5-1 vote, with Council Member Tim Jordan dissenting.

City officials said collections are $1 million behind last year’s numbers at this point of the year, as less water is being used by Hutto residents and businesses.