Myth No. 2- Heart of Texas Water Contract
We’re going to break this down, fact by fact.  
Fact #1- The Heart of Texas contract called for a 33% increase in water volume in August. This effectively takes that severe hike and others planned in the coming years, off of the table. The purchase of this water asset for Hutto preserves our future helping us to control our own destiny and stabilizes rates for long term. As our population grows, and more people share the load, we can then start to see water rates going down.  
With the purchase of the system, our current rate study will need to be revised. While rate relief may not be immediate but will allow for long-term stabilization.  
Owning our own water is like moving from a variable rate of financing to a fixed rate and sustains our water rates, eliminating the huge spikes that were worked into our decade-old contract. So, instead of multiple double-digit water rate hikes, we now have the ability to stabilize our rates. 
Fact #2- The total price is $59 million, plus the cost of issuance, and will be funded by bonds secured by the ratepayers. Therefore, instead of residents’ paying an outside company, the money collected through utility bills will be utilized to allow the citizens to own their own water assets and supply.  
Fact #3- This purchase means that instead of relying on others to supply our water, or having to renegotiate when growth increases or slows down, the City of Hutto will be in control of an important resource and will be able to pursue economic development. 
Fact #4-  The $59 million investment in purchasing the asset is set to yield approximately $200 million in savings over the next 40 years. This is a needed action to allow the City to be competitive and diversify our economy, with the practice of a 3-to-1 return on investments.  
The City is always looking for a way to provide good returns on our investments. The City now owns this resource, we can manage it in a responsible, sustainable way. While the City does not expect to sell large volumes of water, we will continue to look at strategic partnerships with our surrounding entities.  
So, the bottom line. This myth is mixed. The City is purchasing the water system to ensure water rates stabilize over the long-term and the huge, double-digit rate hikes contemplated in the current HOT water contract are minimized for a smoother trend line in rates.