Georgetown residents elect to sell portion of city's water utility

Georgetown residents approve selling water service areas

Over the weekend, Georgetown residents voted to sell a large portion of the city's water utility. It's a move that is projected to save the city millions, but it means a private company could be servicing around 40 percent of customers.

GEORGETOWN, Texas - Over the weekend, Georgetown voters elected to sell a portion of the City's water utility. 

It's a move that is projected to save the city millions but means that a private company could be taking over as a supplier for some customers. 

The backstory:

On Saturday, Georgetown voters approved the sale of the majority of the City’s water utility located outside the City limits and ETJ. That means parts of Florence, Liberty Hill, and Salado, which have relied on Georgetown for water, could potentially fall under a new supplier, the National Utility Infrastructure. 

When it comes to the reason behind the sale, the City of Georgetown points to a struggle to meet the surrounding areas' rapid growth. The Water Utility now serves about a 440-square mile territory, which the City says extends far beyond its extraterritorial jurisdiction (ETJ) and into the expanding area of nearby cities. 

By transferring the service to those areas which are outside the City's ETJ, Georgetown's long-term water needs are expected to reduce by 60% over the years, potentially saving hundreds of millions of dollars. 

The City expects to receive around $60 million from the sale to the National Utility Infrastructure. Those funds will be used to pay off $20 million of existing water infrastructure debt, while additional profit will be reinvested into the Water Utility. 

Local perspective:

But when it comes to possible water rate increases, it still remains unclear. 

The City estimates that it currently provides water to 11,502 customers within the territory that's a part of the transfer but states it cannot know if water rates will be impacted by the sale. However, the City predicts that rates in the fast-growing area will likely continue to rise, regardless of supplier, due to rising costs of securing new water supplies. 

"The neighborhood groups are on top of it, worrying about it and what it's going to mean for everybody," Matthew Varnell told FOX 7 as he tended his lawn in Liberty Hill. 

With a private owner possibly taking control of his water utility, possible rate increases are his biggest worry. 

"There's a little fear there because, hey, we're all on a budget. And if there's a drastic increase in water like there is in other parts of the country, it affects our pocketbooks."

Those concerns are also shared by Jane Winters, who's lived in Liberty Hill for the last 5 years. 

"I wouldn't be surprised if the rates increased as a result of that," she said. "I'm a retiree, so I absolutely have to watch every penny and every time something increases, whether it's the price of food or the price of gas, it obviously affects my bottom line."

What they're saying:

In a statement to FOX 7, Georgetown Mayor, Josh Schroeder, said the following:

"Thank you, Georgetown voters, for approving this sale. By reducing Georgetown’s long-term water needs by 60 percent, the transfer of these areas will fundamentally change the math on what our ratepayers have to bear as water becomes more expensive throughout Texas. It will also enable us to put millions of dollars back into our water system to pay down debt and continue investing in the infrastructure we need. We look forward to working with the buyer and the Texas Public Utility Commission to ensure a smooth transition that protects every customer."

What's next:

Before the sale can become final, it must be approved by the Texas Public Utility Commission, a process which could take up to two years. 

The City will also transfer portions of its water service territory to the cities of Jarrell and Killeen that are located within their ETJ's. Since those areas do not have existing customers, Georgetown says voter approval was not needed. 

If you would like to know if you live in an area that's affected by the sale, you can do so by visiting the city's website.