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Newsletter 4-11

 

Town Update by Alderman Lisa Garcia, Place 2

 

In March, Providence residents received notices in the mail regarding the pending transfer of the Providence water and sewer systems to Mustang SUD and the cancellation of the Providence Village WCID’s certificates of convenience and necessity (CCNs). The Providence Village Town Council responded by hiring an attorney to advise us regarding opposing the systems transfer and CCN cancellation.

A Brief History

In the early days of Providence, Mustang and Denton County Fresh Water Supply District #9 (now PVWCID) non-resident directors agreed to a series of contracts. The first agreement stated Providence would transfer the water and sewer systems to Mustang when the bond debt was retired and the developers were reimbursed for their initial investments in the systems. Subsequent contracts provided the developers opportunities to expand our community across FM-2931 in exchange for moving the transfer date up to October 2011 and requiring the water district to begin matching Mustang’s higher water and sewer rates in 2008, the first year Providence residents could be elected to the majority of the water district director positions.

Currently, 87 cents of every property tax dollar Providence homeowners pay to the PVWCID is used toward retiring infrastructure bond debt, including the water and sewer systems. If the transfer occurs in October, Mustang will fully own our systems while Providence taxpayers will continue to pay millions of dollars for existing and future growth bond debt.

Another concern is regarding the CCNs, which is basically a permit issued by the Texas Commission on Environmental Quality (TCEQ) that authorizes utility districts to provide retail water and sewer services to certain areas. If the Providence water district certificates are cancelled, Providence Village residents will become Mustang customers and will pay Mustang’s water and sewer rates, which are typically higher. As Mustang customers, we would also be subject to any rate increases set by the Mustang board of directors in the future. Additionally, our School Districts and HOA will be negatively impacted by the increased water rates, which will trickle down in the form of increased taxes and dues or reduced services.

Since the ‘matching rate parity’ clause in the contracts took effect in 2008, residents using an average of 10,000 gallons of water per month have seen the base rate for water increase from $12 to $28 and sewer base rates jump from $25 to $35.75. Mustang charges its current average customers a $39.50 base rate for sewer service, an amount the present PVWCID directors will be contractually obligated to match.

Town Council’s Involvement

The Providence Town Council has been researching and monitoring the infrastructure transfer and CCN matter since the town incorporated last May. In addition to consulting with specialized legal counsel in April, the town council considered filing an objection and request for public hearing with the TCEQ.

More Town News

Plans to establish the Town’s first municipal court are progressing. Council members interviewed and considered several candidates for the positions of municipal judge and town prosecutor.  The May 14th Town Council election was cancelled as no opposing candidates filed to run against Council Members Eddie Army, Lisa Garcia, and Mike Thompson.
As a reminder, open meetings are held twice each month at the Community Center at 9400 Waterman
Drive on the second and fourth Mondays at 7pm. You can visit the Town website for updates at
www.TownofProvidenceVillage.com.

 
© 2012 Town of Providence Village
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