Wilbarger Creek Municipal Utility District #1
News and Announcements

Now In Effect

Central Texas is experiencing one of the worst droughts in recorded history. Consistent with the District's Drought Contingency Plan, which is required by State law, the District implemented Stage 1 mandatory watering restrictions effective May 16, 2012 in an effort to manage the take-or-pay purchase requirements of the District's wholesale water supply (click HERE for additional information on how these requirements may affect your water rates), conserve the District's water resource, and prepare for the upcoming wastewater winter averaging period, which will help keep wastewater expenses down next year.

Basics of Stage 1 Water Restrictions

The goal for Stage 1 is to achieve a 5% reduction in average daily water use. Under Stage 1, landscape irrigation is only permitted before 10:00 a.m. and after 7:00 p.m. on the following designated watering days:

  • Sundays and Thursdays for even numbered addresses;
  • Saturdays and Wednesdays for odd numbered addresses; and
  • Tuesdays and Fridays for commercial customers

Additional restrictions regarding washing vehicles, filling swimming pools, fountains and ponds, use of water from hydrants, wasting water also apply. Violations of the watering restrictions will be subject to a fine, and repeat violations may be subject to termination of water service. Please read the complete Stage 1 Notice for more details.

Please contact the District's utility operator at (512) 246-1400 if you have any questions or to report water waste.

Click HERE to view a copy of the District's Drought Contingency Plan.

Notice Regarding Board of Directors Meeting Schedule

Historically, the District's Board of Directors has conducted regular monthly meetings. However, in an effort to reduce expenses, the Board has elected to meet only as necessary during the 2011-2012 fiscal year, which runs from October 1, 2011 through September 30, 2012. Stay tuned for future meeting announcements. Meetings are held at the District attorney's office at 100 Congress Avenue, Suite 1300, in Austin, Texas.

Wholesale Water Supply:
Summary of take-or-pay purchase requirements

The Manor MUDs reached a settlement with Metro-H2O, Ltd., their water supplier, regarding the wholesale water rate in May, 2011, and the wholesale water supply contract has been amended to reflect the new rate structure as well as the other terms of the settlement. The basics of how the new wholesale rate structure works are summarized in the chart below:

Revised Wholesale Water Rate & Terms 2011 Wholesale Water Cost
 Initial Take-or-Pay Amount 130 million gallons per year
 Initial Wholesale Water Rate (a) $ 4.95 per thousand gallons $ 643,500 Take-or-Pay
 Initial Annual Fee (a) $ 130,000 130,000 Annual Fee
$ 773,500
 a) The wholesale rate and the annual fee are both subject to annual increases of approximately 3%.

A key provision of the revised rate structure is a take-or-pay purchase provision that requires the MUDs to purchase a minimum amount of water per year. The initial minimum purchase requirement for 2011 is 130,000,000 gallons of water, which was established as the initial minimum amount because the MUDs' average annual wholesale water usage each year from 2008 to 2010 was 129.7 million gallons and, with development continuing to be slow, this amount was considered to be a reasonable initial benchmark. However, due to the extreme drought conditions persisting in Central Texas, water usage in the Manor MUDs has increased significantly during 2011 and is currently projected to reach 150 million gallons by the end of the year. This level of water usage will cause an increase in the minimum take-or-pay wholesale amount due to the wholesale water provider next year because once the amount of water used by the MUDs exceeds the minimum base quantity, the take-or-pay amount for the following year will be increased by 90% of the excess water used. An example of how the increase would be calculated based on current usage projections is illustrated in the following chart:

Increased Water Usage Take-or-Pay Calculations Increased Wholesale Water Take-or-Pay Cost
 Increased Usage Amount 150,000,000 gallons per year $ 643,500 Take-or-Pay
 Initial Take-or-Pay Amount 130,000,000 gallons per year 130,000 Annual Fee
Subtotal 20,000,000 $ 773,500
X 90% 89,100 Additional Take-or-Pay Cost
18,000,000 $ 862,600 Increased Take-or-Pay Cost
 Plus Pervious Year's Take-or-Pay 130,000,000 gallons per year
 Revised Take-or-Pay Amount 180,000,000 gallons per year

Because the MUDs' wholesale water costs are funded by the retail rates charged to the residents of the MUDs, an increase in take-or-pay costs could affect retail water rates for you and your neighbors. In an effort to mitigate the effect that increased water usage may have on retail rates and conserve and manage the community's water resource, the District implemented Stage 2 water use restrictions effective November 3, 2011. Click HERE for additional information on the requirements of Stage 2 restrictions.

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