The Austin City Council will soon take the first steps to help Austin Utilities build a $18.6 million central administrative facility.

Council members will discuss policies during a work session Tuesday that will allow the city to act as a financial agent for a bond for the project.

Electric rates will increase 1.77 percent, gas rates will increase 3.5 percent and water rates increased 6.9 percent starting Jan. 1.

Utilities officials estimate an average increase of $8.18 in utilities payments per month for residential customers and a 1 to 3 percent increase per month for commercial properties.

The rate increase goes to pay for a new $18.6 million central administrative facility for Austin Utilities.

Utilities officials are looking to consolidate office operations, including customer service, staff operations and administrative duties, from the seven buildings utilities workers use.

Though Austin Utilities has for years looked at options to improve its efficiencies — utilities officials bought 23 acres south of Todd Park in 2009 to potentially host a new building — General Manager Mark Nibaur previously said the time wasn’t right to move forward until utilities officials decommissioned the downtown power plant and looked at its options.

The council will also discuss goals to set for new city administrator Craig Clark. Clark began work for the city on Dec. 8.