Chisholm Trail SUD board approves water utility merger agreement

The Chisholm Trail SUD provides water to about 7,000 customers, about two-thirds of whom are in or near the Georgetown extraterritorial jurisdiction, or ETJ. The district incorporates northwestern Williamson County as well as a portion of Burnet and Bell counties.

Under the new agreement, the base water rate for Chisholm Trail SUD customers is expected to decrease about 26 percent. Proposed rates for the average water user are also expected to be less than current Chisholm Trail SUD rates, according to district documents.

"The city has in-city rates and out-of-city rates, and we would become part of that out-of-city customer base," said Pat Gower, Chisholm Trail SUD board president, during a July 18 meeting. "They have about 3,000 out-of-city customers. We're bringing 7,000 more, and [Georgetown] would run the whole thing."

Under the agreement, the city would take over all of the district's assets and debts as well as 17 full-time employees, Georgetown Utility Manager Jim Briggs said.

If approved by City Council, the transfer would have to be approved by the Texas Commission on Environmental Quality, Briggs said.

The two utilities have been discussing the proposed merger for more than 2 1/2 years. The board had previously considered an agreement with the city that would have created a local government corporation, however, the board voted 4-3 in April to deny the agreement.

On July 18 board members directed the water utilities legal staff to draft a contract to merge the two utilities; however, on Aug. 1 the board voted 3-3, which tabled the contract.

"When I sit back and look at all of the work the district has completed in the last two years For my first time of being on this board, we actually have a pretty good view of what the future would look like for an independent Chisholm," Gower said. "When I sit back and look at the asset transfer and utility consolidation agreement, I see a better future for our customers than I do there."