Residents of Georgetown have voted to divest a significant portion of the city’s water utility, a decision anticipated to save the municipality millions. However, this shift will result in a private company potentially servicing approximately 40 percent of the water customers.
During the recent vote, Georgetown citizens approved the sale of the majority of the city’s water utility that extends beyond the city limits and its extraterritorial jurisdiction (ETJ). This decision means that communities such as Florence, Liberty Hill, and Salado, which have depended on Georgetown for their water supply, may soon transition to a new provider, the National Utility Infrastructure.
The motivation behind this sale stems from Georgetown’s ongoing challenge to accommodate the rapid growth of surrounding areas. Currently, the water utility serves an expansive territory of about 440 square miles, which extends well beyond the city’s ETJ and into the burgeoning regions of neighboring towns.
By transferring service responsibilities for these outlying areas, Georgetown anticipates a reduction in its long-term water needs by 60 percent, potentially resulting in savings amounting to hundreds of millions of dollars over time. The city expects to generate approximately $60 million from the sale to the National Utility Infrastructure, with plans to allocate $20 million to settle existing water infrastructure debt, while reinvesting any additional profits back into the water utility.
Concerns regarding potential increases in water rates remain ambiguous. The city currently provides water to 11,502 customers affected by this transfer but has not determined whether the sale will influence rates. However, municipal officials predict that water rates in the rapidly developing areas are likely to escalate, irrespective of the new supplier, due to the rising costs associated with securing fresh water sources.
Local residents express anxiety over the implications of the sale. Matthew Varnell, a resident of Liberty Hill, shared his concerns while tending to his lawn. “There’s a little fear there because we’re all on a budget. If there’s a drastic increase in water, like we see in other parts of the country, it affects our pocketbooks,” he stated.
Jane Winters, who has lived in Liberty Hill for five years, echoed these sentiments, mentioning her need to be financially cautious as a retiree. “I wouldn’t be surprised if the rates increased as a result of that. Every increase, whether it’s in food or gas, obviously affects my bottom line,” she remarked.
Georgetown Mayor Josh Schroeder expressed gratitude to voters for their support of the sale. In a statement, he said, “By reducing Georgetown’s long-term water needs by 60 percent, this transfer will fundamentally change the financial landscape for our ratepayers as water costs rise throughout Texas. It will also allow us to reinvest millions into our water system to address debt and improve necessary infrastructure. We are committed to working with the buyer and the Texas Public Utility Commission to ensure a seamless transition that safeguards all customers.”
Before the sale can be finalized, it requires approval from the Texas Public Utility Commission, a process that may span up to two years. Additionally, the city will transfer portions of its water service territory to the cities of Jarrell and Killeen, which fall within their respective ETJs, without needing voter approval since these areas do not have existing customers.
Residents wishing to determine if their area is affected by the sale can find information on the city’s official website.
