Live Oak EDC reviews water-rights inventory; staff recommends monitoring market before purchases

City staff briefed the Live Oak Economic Development Corporation on Jan. 28 about the city’s water-rights inventory and purchase strategy, saying the city currently holds about 390 acre-feet and estimates a need near 640 acre-feet, leaving roughly 250 acre-feet to be acquired to meet projected demand for undeveloped and developing areas.

A staff presenter identified as Mr. Waxner said the city has budgeted $300,000 in previous and current budgets for water-right purchases but that drought conditions have caused prices to more than double. “You currently have 390 acre feet in your inventory,” Waxner said. “That leaves you needing about an additional 250 acre feet.” He said staff had purchased a total of 537 acre-feet since 2011 and that the city transferred 147 acre-feet in 2017; staff expect another transfer later in the year.

Board members asked whether the city’s $600,000 set-aside would be sufficient to buy on short notice. Director Tillman asked if $600,000 could buy enough water immediately; Waxner replied that in prior years $300,000 bought about 100 acre-feet (roughly $6,000 per acre-foot), and that current market rates would likely be about $12,000 per acre-foot or higher. Manager Gaffari said the city is “ready” and that the EDC had allowed the fund to go up to $600,000; staff would act as market conditions dictate.

Director Simmick asked whether the city charges water impact fees; staff said the city does not charge impact fees for water hookups, though there is an impact fee for sewer that is passed through by the treatment plants. Board members discussed the risk of being priced out if the council waited too long, and Vice President Adela asked what conditions would prompt staff to purchase rather than keep monitoring. Waxner said staff would watch drought conditions and market movement and buy when a favorable opportunity arises.

No formal board action was taken. Staff reported they will continue to monitor the market and that purchases will be made when market conditions and budgetary rules are met. The board acknowledged that while the city appears ahead of projected development needs, additional budgeting will be necessary to acquire the full estimated need of roughly 250 acre-feet.

Notable figures reported at the meeting - Current inventory: ~390 acre-feet (reported by staff). - Estimated need: ~640 acre-feet total; additional ~250 acre-feet required. - Funds available: $600,000 set-aside for purchases (staff can act when a suitable deal appears). - Historical purchases: 537 acre-feet purchased since 2011; 147 acre-feet transferred in 2017; another transfer expected later in the year. - Price indications: previously about $6,000 per acre-foot; staff estimate current market could be $12,000+ per acre-foot due to drought.