Georgetown staff proposes selling portions of its water service territory to reduce long-term demand by 58%

Caroline Stewart, the city's strategic projects manager, told Mayor and Council that staff is proposing a multi-year effort to transfer large portions of Georgetown's water CCN that lie outside the city's ETJ to neighboring cities or other utilities. The stated objectives are to reduce long-term water demand, lower the city's exposure to development outside its land-use control, and stabilize rates by removing uncertain, high-growth territory from Georgetown's planning responsibility.

Stewart said the city's CCN covers about 400 square miles and extends into Burnet and Bell counties following the 2010 acquisition of the former Chisholm Trail Special Utility District. She said more than 40% of current customers are outside the city limits and that rapid development outside the ETJ has left the city carrying a large capital program: staff reported about $415,000,000 in water capital projects now active, most built to serve areas outside the ETJ.

Under the plan outlined in the workshop, staff would retain service territory inside the city limits and ETJ (about 62,500 customers) plus a small adjoining band where critical infrastructure sits.…