Water rates at the city of Buda are expected to rise in the coming years as the city completes the expansion of its wastewater treatment plant and pays for new sources of water. Buda City Council received a recommendation at a budget workshop June 25 to increase water rates by 15 percent in the fiscal year 2016 budget. “It’s not great news,” said HDR Engineering consultant Grady Reed, who issued the recommendation. “You’re experiencing the growing pains of a growing city.” Beyond 2015-16, city of Buda water customers can expect 20 percent hikes in fiscal years 2017, 2018 and 2020, as well as a 15 percent increase in 2019. Reed did not recommend raising wastewater rates. Buda projects it will need an additional water source in 2017 to accommodate its growing population. About 1 million gallons of water a day will be needed from 2017 to 2023 because of expected growth. The city in January contracted with Electro Purification, a Houston-based water supplier, for 1 million gallons of water per day from an unregulated area of the Trinity Aquifer in central Hays County. That project garnered controversy and was the target of a bill authored by Rep. Jason Isaac, R-Dripping Springs, that was signed into law in June. Buda officials have been working with the Hays-Caldwell Public Utility Agency for months to hash out a water sharing plan that would supply the city with its needed interim 1 MGD from 2017 to 2023. It would involve the cities of San Marcos and Kyle sharing their capacity in the Guadalupe-Blanco River Authority's I-35 water pipeline. Mayor Todd Ruge said at the meeting that the deal is not yet done. Facing a projected population boom, Buda will issue in FY 2016 an additional $313,000 in debt for water and wastewater projects, according to the presentation given at the June 25 meeting. Costs associated with the EP and HCPUA projects—which entails the construction of a pipeline from Kyle to Buda in 2017—are estimated to be about $2.5 million in FY 2020, according to the presentation.