Newton City Council approves bulk water contract with Town of Maiden for Sigmon Hollow

Newton City Council on Oct. 19 unanimously approved a bulk water purchase contract letting the Town of Maiden buy water for the Sigmon Hollow residential development connected to Newton’s system.

Public Works and Utilities Director Dusty Wentz told council that Maiden currently buys water from Newton at Newton’s outside-city limits rate while selling to Sigmon Hollow residents at Maiden’s inside-city rate, producing a monthly net loss for Maiden. The contract approved by council requires Maiden to purchase a minimum of 150,000 gallons per month at $3.20 per 1,000 gallons. The agreement includes a "take-or-pay" clause requiring payment for that minimum volume regardless of actual use, automatic percentage increases when Newton raises its inside-city rate, and a mandatory contract revision if average usage shifts more than 15 percent over a 12-month period. City Attorney John Cilley noted the contract also includes a one-year termination clause and that Maiden’s town council had already approved the same contract.

Council Member Jody Dixon moved to approve the contract; Council Member Jerry Hodge seconded the motion, which passed unanimously. The contract and accompanying documents are on file in the Office of the City Clerk.

Why it matters: The contract formalizes how water service will be billed between Newton and Maiden for a development connected to Newton infrastructure. The take-or-pay minimum and the rate link to Newton’s inside-city rate affect Maiden’s monthly costs and the development’s water pricing. The agreement also creates an administrative path to revisit terms if usage changes materially.

Next steps: City staff will finalize administrative details and continue coordination with Maiden’s town staff and the developer of Sigmon Hollow. The contract documentation is referenced in the clerk’s office.