As part of the initial steps of this process, Georgetown will offer these areas for neighboring cities to take on.
Explained
A certificate of convenience and necessity is the geographical area in which the city is required to provide water service.
Currently, 40% of the city’s CCN customers live outside the 174-square-mile area of the city and its ETJ, as Georgetown’s CCN spans a total of 400 square miles.
The sale would include areas of the CCN outside the city limits at ETJ, affecting about 11,500 customers.
“Cities don't typically establish water utilities to serve large regions, largely because that accompanies a lot of risk,” Caroline Stewart, strategic projects manager for Georgetown, said during a City Council workshop Aug. 26.
The risk comes from the fact that cities don’t have much control over development outside of its city limits and ETJ, yet Georgetown is still legally obligated to provide water to that area, Stewart said.
The history
In 2014, the city merged with a rural water district formerly called the Chisholm Trail Special Utility District. While originally intending to take over a small portion of the district, the state Legislature required the city to absorb it entirely.
The area, which extends into Burnet and Bell counties, has seen significant growth since the merge, and now uses more than 800 times the water than it originally brought into the acquisition.
“We have seen massive development in that area that's continuing, and we've done a lot of studies projecting how this growth is expected to continue into the future,” Stewart said.
The why
By selling part of the CCN, the city will reduce the cost burden on Georgetown taxpayers, as well as better control the growing demand for water.
The city would retain all of its CCN that is within city limits and the ETJ, as well as territory west of its ETJ to Hwy. 183. About 11,500 customers would be transitioned to another water provider following the sale, and about 62,500 customers would remain.
The sale of this water territory would also significantly lower the city’s water deficit, or the shortage of water available for future growth, Stewart said. This also means that water rates for Georgetown residents could be more controlled, and increase more slowly due to decreased demand for new water.
How it works
Georgetown will offer neighboring cities the option to purchase parts of its CCN within their jurisdiction before offering the areas to other providers.
“We’re wanting to give the opportunity for these other cities to take over portions of their ETJ,” City Manger David Morgan said. “It may be areas that get annexed as a part of that city.”
The deadline for cities to respond to Georgetown’s initial sale offer is Sept. 30. The city would then execute a buyer procurement process, and agreements for the purchase and CCN transfer.
Georgetown voters would also need to authorize the sale through an election, which could happen in May 2026 at the earliest. City officials anticipate the CCN transfer to close by late 2027 to 2029.
“This is not something where we're going to stop providing water,” Stewart said. “We're going to make sure that any current customers have a continued water supply.”
