The City of Rollingwood completed the purchase of a wastewater system Aug. 1 that includes seven lift stations and gathering lines from the Lower Colorado River Authority.
The purchase was made possible by the voter-approved $12.57 million bond referendum passed in May to finance the wastewater system. The bond will mature over 33 years with an interest rate of 3.43 percent.
"This was a sound financial decision that significantly reduces our costs and places the ownership and control of the wastewater system in our hands where we, as a community, can control our own destiny," Rollingwood Alderman John Hinton said.
While the annual capital cost of the system is expected to be reduced by 13 percent and the fixed maintenance and operations expenses are expected to drop by 32 percent, property taxes are expected to increase by 8 cents per $100 in valuation. The rise in property taxes is expected to be offset with reductions in user charges.
AWR Services Inc., an Austin-based company, was selected by the city to handle the maintenence and operations of the system.
"I want to thank our former mayor and council, and our current council for their leadership in negotiating and closing this transaction," Rollingwood Mayor Barry Bone said.