Updated Aug. 7, 2017 1:55 p.m. for rate price correction.  Buda residents may start receiving a higher water bill this fall to help offset future debt issues that could arise as the costs increase on projects related to the Alliance Regional Water Authority—formerly known as the Hays Caldwell Public Utility Agency—and aquifer storage and recovery. At Tuesday night's City Council meeting, Buda Finance Director June Ellis and Grady Reed, project manager at HDR Engineering, Inc., proposed that commercial and residential water rates should be increased by six percent and wastewater increased by three percent. According to Reed, the proposed increase could mean that a residential customer using 5,000 gallons per a month could see their water and wastewater bill increase $3.05 per month, and for customers using 10,000 gallons per a month, the increase could be $4.95 per a month. For a commercial customer who uses 5,000 gallons of water and wastewater the total monthly increase would be $4.66 and $7.40 for those who use 10,000 gallons per a month. Ellis will present to City Council the new utility rates and schedule in August, and Council will take action on the proposal in September at the same time they are reviewing the city's budget for the 2017-2018 fiscal year. Ellis said that the wastewater treatment plant expansion project, projected to start this year, is one of the reasons for the price increase. “It’s something that is needed here in the city, but it’s going to cost well over $20 million,” Ellis said. “It’s going to be a benefit to city residents, but obviously we have to pay for it, and this [increased water and wastewater rate structure] is one way of paying for it.” While the increased rates would help the city in the long run according to Reed, he caused concern when he told the City Council it is possible the city revenue would not fully cover expenses even with the rate changes. However, Reed said the fund balances would be used to cover the deficit, which would eventually bring the fund balance down and control the amount of time it takes for the city to reach a desired financial stability. “We are trying to do that in such a way that we don’t cause a large rate increase even in five years, but at the same time trying to minimize to the current citizens now,” Reed said. If approved by City Council, the new rates will be sent to Buda residents on Oct. 1.