The Alliance Regional Water Authority (ARWA) plans on delivering the City of Buda water from the Carrizo Wilcox Aquifer by the summer of 2023. Buda has been working with ARWA on this project since 2017, but the costs have risen since the last projections.
The project to bring Buda’s growing population water is expected to cost the city $12.2 million in principle amount. On Tuesday night, council members passed the resolution to adopt the Contract Revenue Bond in the principle amount of $6,225,000 for Phase 1B, which has increased since the last projections.
Overall, the ARWA project is costing $27 million more than anticipated, of which Buda is responsible for $1,365,000. Project costs may have increased, but the interest rate on the note has decreased, which will take the city’s interest payment down to nearly $440,000 less than the original quote. The interest rate for the project is locked in.
Mayor George Haehn said that it is unfortunate to see that there always seems to be a price increase in these big projects. But Mayor Haehn still believes in the importance of creating these water reserves.
“We have to have the water by 2023 if growth continues as it has been,” Haehn addressed the council.