The Hutto City Council approved a 15 percent rate increase for water utilities at its April 19 meeting.
The increase came after the city conducted an updated rate utility study to get a better picture of Hutto's growth rate and look at what funding will be needed for the city's capital improvement projects. Based on the information, city staff reported that a 30 percent rate increase was needed.
"We fully expected to have rate increases ... because of our contracts and the capital improvements the city is doing to support new growth," said Hutto Assistant City Manager Micah Grau. "We wanted to have good justification before we went to our tax payers, to show that we did our due diligence."
The council will consider an additional 15 percent increase in the fall to meet the 30 percent increase projection. Council's hope in splitting the decision is to lighten the blow on utility customers and make sure the full 30 percent increase is really needed.
"I say let's do a little bit more now, hoping to save more down the road," said council member Paul Prince.
The average utility customer currently spends $60 per month on their water bill, and will pay $70 per month with the increase, which will go into affect on June 1, Hutto Internal Services Manager Randy Barker said.