In 2014, the City of Georgetown sought to purchase part of the Chisholm Trail Special Utility District (CTSUD) to make water more available to support development in parts of the City’s extra-territorial jurisdiction (ETJ). However, the State required the City to purchase the whole rural CTSUD, rather than just the parts within Georgetown’s ETJ. This meant that, with the purchase, the City of Georgetown’s water service area (the area in which the City has both the right and the responsibility to sell water) increased to 400 square miles, even though the City and its ETJ cover only 60 square miles.
In the years since Georgetown acquired this large water service area, its population and development grew rapidly, increasing water demand. This increased demand, in part coming from development in areas over which Georgetown has no regulatory control, complicates the City’s efforts to develop viable long-range water plans. In response, the City of Georgetown seeks to reduce its service area by selling and/or transferring parts of its water utility system.
The sale of a portion of the City of Georgetown, Texas’s water utility system located outside of its corporate limits to National Utility Infrastructure in the aggregate principal amount of not less than $20,000,000.00.
The City is currently working with the Cities of Jarrell and Killeen to transfer areas within their own ETJs directly to those Cities. State law does not require voter approval for these transfers because those undeveloped areas do not yet have any water customers or infrastructure. With this proposition, Georgetown seeks voter approval to transfer other parts of its water service area that fall outside the Georgetown City limits and its own ETJ, but have either water customers or existing infrastructure. These areas include parts of the ETJs of Salado, Liberty Hill, and Florence. Georgetown will keep some areas beyond Georgetown’s ETJ to the west to preserve infrastructure improvements the City has made there. The City proposes to sell the remaining portions of the service area to National Utility Infrastructure (NUI), a company the City selected through a competitive bidding process.
If Proposition A passes:
The proposed sale also requires approval by the Texas Public Utility Commission (TPUC). Assuming that TPUC approves, the City will finalize negotiations and make the sale. Georgetown must receive at least $20 million for the transferred areas to cover outstanding debt for improvements made in the transferred area. The City expects to receive approximately $60 million, all of which would be reinvested in the City’s water utilities.
Approximately 11,500 current water customers outside of Georgetown and its ETJ would become NUI customers. TPUC would be responsible for monitoring their water rates and the quality of customer service that NUI provides to these customers.
62,500 current Georgetown customers would remain in the City’s water district. Water demand will continue to increase, but with a smaller customer base, the City anticipates it will need 60 percent less water by 2070 than it would need if it did not make the transfers. This will make long-term planning easier and could potentially slow rate increases for Georgetown residents.
If Proposition A fails (or if the TPUC does not approve the sale):
The City will continue working with Jarrell and Killeen to transfer portions of Georgetown’s current water utility to these respective cities. The City of Georgetown will continue to be responsible for supplying water service to the remaining areas that cannot be transferred. Rates for water customers outside of the City and its ETJs will increase to meet the costs of continuing service.
In 2014, the City of Georgetown sought to purchase part of the Chisholm Trail Special Utility District (CTSUD) to make water more available to support development in parts of the City’s extra-territorial jurisdiction (ETJ). However, the State required the City to purchase the whole rural CTSUD, rather than just the parts within Georgetown’s ETJ. This meant that, with the purchase, the City of Georgetown’s water service area (the area in which the City has both the right and the responsibility to sell water) increased to 400 square miles, even though the City and its ETJ cover only 60 square miles.
In the years since Georgetown acquired this large water service area, its population and development grew rapidly, increasing water demand. This increased demand, in part coming from development in areas over which Georgetown has no regulatory control, complicates the City’s efforts to develop viable long-range water plans. In response, the City of Georgetown seeks to reduce its service area by selling and/or transferring parts of its water utility system.
The sale of a portion of the City of Georgetown, Texas’s water utility system located outside of its corporate limits to National Utility Infrastructure in the aggregate principal amount of not less than $20,000,000.00.
The City is currently working with the Cities of Jarrell and Killeen to transfer areas within their own ETJs directly to those Cities. State law does not require voter approval for these transfers because those undeveloped areas do not yet have any water customers or infrastructure. With this proposition, Georgetown seeks voter approval to transfer other parts of its water service area that fall outside the Georgetown City limits and its own ETJ, but have either water customers or existing infrastructure. These areas include parts of the ETJs of Salado, Liberty Hill, and Florence. Georgetown will keep some areas beyond Georgetown’s ETJ to the west to preserve infrastructure improvements the City has made there. The City proposes to sell the remaining portions of the service area to National Utility Infrastructure (NUI), a company the City selected through a competitive bidding process.
If Proposition A passes:
The proposed sale also requires approval by the Texas Public Utility Commission (TPUC). Assuming that TPUC approves, the City will finalize negotiations and make the sale. Georgetown must receive at least $20 million for the transferred areas to cover outstanding debt for improvements made in the transferred area. The City expects to receive approximately $60 million, all of which would be reinvested in the City’s water utilities.
Approximately 11,500 current water customers outside of Georgetown and its ETJ would become NUI customers. TPUC would be responsible for monitoring their water rates and the quality of customer service that NUI provides to these customers.
62,500 current Georgetown customers would remain in the City’s water district. Water demand will continue to increase, but with a smaller customer base, the City anticipates it will need 60 percent less water by 2070 than it would need if it did not make the transfers. This will make long-term planning easier and could potentially slow rate increases for Georgetown residents.
If Proposition A fails (or if the TPUC does not approve the sale):
The City will continue working with Jarrell and Killeen to transfer portions of Georgetown’s current water utility to these respective cities. The City of Georgetown will continue to be responsible for supplying water service to the remaining areas that cannot be transferred. Rates for water customers outside of the City and its ETJs will increase to meet the costs of continuing service.
