LCRA to Sell SCLA Water System

The Hays County Commissioners Court recently approved a “concurrent ordinance” to create a regional Public Utility Agency (PUA) in collaboration with the City of Bee Cave and the West Travis County Municipal Utility District No. 5.  The new PUA will serve as a vehicle to acquire the LCRA’s West Travis County Water and Wastewater System, which is for sale.  This system is the one that provides water to many of our Sunset Canyon residents.  Several governmental agencies had previously formed a corporation to handle negotiations with the LCRA to buy the utility.  If this sale is successful, the PUA will own and operate the utility.

Hays County has been concerned that the sale of the utility to a private non-local, for profit entity could cause water rates to skyrocket in the future.  The intent of the PUA is to help ensure that water rates are maintained at “market rates” for customers.  It is believed that the PUA will be able to keep future rate increases at a moderate level and will be lower that even what the LCRA had planned.  The PUA should be able to provide less expensive service to our growing area.

The PUA is expected to give ratepayers a voice in the operation of the utility as well as how water service is provided and its cost.  The PUA is expected to issue revenue bonds and set water rates to cover expenses and will be governed by a board of directors.  Commissioner Ray Whisenant, of Precinct 4, will serve as one of Hays County’s appointees to the board.