On October 29th 2020 The City of Princeton joined with North Texas Municipal Water District along with the other 12 member cities in the signing of their agreement on an amended wholesale water services contract. Officials from the NTMWD member cities and the Water District gathered for a symbolic signing ceremony by the water treatment facilities at the district’s headquarters in Wylie as a show of unity and the beginning of a new era in their partnership.
The original water supply contract was signed in 1953 and was amended in 1988. The transition to the new structure will be phased in over the next 13 years. Under the original contract, each city was required to pay for the amount of water the city used in its highest demand period. This method provided guaranteed and necessary funding of the water infrastructure operations and financing costs for the regional water system. Over that last decade or so, water conservation efforts, droughts, and the high cost of building the infrastructure have increased the cost of water to cities and ultimately the end user, under the original method.
The new agreement takes into account trends in usage and will allow for adjustments resulting from cities having lower usage over time. The new allocation method developed by the cities will gradually adjust the annual minimums over the next eight years to more closely align the basis for a member city’s portion of the overall system costs with the historical actual consumption of each city. Ultimately each city will be able to set rates that align with their actual usage rather that their highest annual demand.
I would like to thank the Mayors, City Councils, City Managers, for their hard work over the past several years negotiating this historical agreement and coming together as a region for this great accomplishment.
Derek Borg | City Manager, Princeton Texas
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