Hutto council directs EDC outreach to blunt utility rate increases

Mayor Sanders and council members on May 7 directed staff to pursue a financing approach that asks the Economic Development Corporation (EDC) to reimburse utility expenses tied to megasite development, a step staff and council said would modestly reduce near‑term rate increases.

Alberta Barrett, who presented the utility fund projections, said staff modeled two scenarios. "In '27, we're projecting to borrow 29,100,000 for the central wastewater treatment plant version phase 1," Barrett said as she outlined capital needs, operating assumptions and two rate paths. Under Scenario 1, Barrett said, the impact‑fee fund would transfer money to cover operations and the model showed a large rate jump in 2029; under Scenario 2 the EDC would provide reimbursements that staff estimate would delay some increases and lower the six‑year cumulative rate rise by roughly 12 percent.

Barrett told council a one‑time EDC reimbursement would cover prior East‑West Spine Road expenses and recurring annual reimbursements would offset debt service tied to the megasite. She said Scenario 2 would require a one‑time payment of $4,511,300 and recurring reimbursements of about $1.8 million per year, and that the EDC could shift transfers to the utility and debt service funds to reduce pressure on ratepayers.

Council moved and seconded a direction to notify the EDC and bring the proposal to the EDC board for approval. The motion passed on a unanimous roll call. Barrett said staff will bring back the EDC response and next‑step language once the EDC board has considered the proposal.