Georgetown Plans Sale of Water Service Area Amid Growth Challenges

What's Happening?

The city of Georgetown, Texas, is considering selling portions of its municipal water utility to better manage future growth and associated costs. Georgetown's Water Certificate of Convenience and Necessity (CCN) currently serves a 400-square-mile area, providing water to 74,000 customers, with 40% residing outside city limits. City Manager David Morgan highlighted the strain of servicing such a large area, especially outside Georgetown's extraterritorial jurisdiction (ETJ). The proposed sale would transfer about 11,500 customers, aiming to stabilize rates and manage rising costs. Without the sale, Georgetown faces a significant water deficit due to projected population growth.

Why It's Important?

This move is significant as it addresses the challenges of urban expansion and resource management. Georgetown's decision to sell parts of its water service area reflects broader issues faced by municipalities in managing infrastructure amid rapid growth. The sale could lead to more stable water rates for remaining customers and potentially improve resource allocation. However, it also underscores the increasing cost of water resources, impacting both current and future residents. The decision will require voter approval and regulatory consent, highlighting the importance of public and governmental involvement in essential service management.

What's Next?

Georgetown plans to offer the transfer of its CCN to neighboring cities, including Killeen, Salado, Florence, Jarrell, and Liberty Hill, with a deadline of September 30th for acceptance. Following an agreement, the sale must be approved by voters in a May 2026 election and receive approval from the Public Utility Commission of Texas. These steps will determine the future of Georgetown's water service management and its ability to meet growing demand.

Beyond the Headlines

The sale of Georgetown's water service area raises questions about the sustainability of municipal utilities in rapidly growing regions. It highlights the need for strategic planning and investment in infrastructure to ensure long-term viability. Additionally, it reflects broader trends in water resource management, where cities must balance growth with environmental and economic considerations.