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Staff Report on October 12, 2016
Kyle sets service agreement with Anthem

By Rafael Marquez

An agreement between the city of Kyle and developers of the Anthem subdivision will pave the way for utility service to be extended to the development. 

Kyle city leaders earlier this month approved an agreement with Mountain City 150, LP to extend water and wastewater services Anthem, which is a 1,900 to 2,200 home development located in Mountain City’s extraterritorial jurisdiction.  

The agreement calls for the developer to build, at its own expense, the infrastructure needed to tap into Kyle’s municipal water supply. Mountain City 150, LP will also pay an advance fee to the city of approximately $2 million that the city will use for improvements/ renovations to the city’s wastewater plant.

Anthem residents will be considered “out of city” water and wastewater utility customers and will provide additional revenue to the city’s water utility. 

Since Anthem is within Mountain City’s ETJ, it is not subject to the new $5 storm water fee. 

Webster said that even if Mountain City decides to annex Anthem, the development would remain a utility customer of the city of Kyle.

It was determined that a regulated water supply from a municipal provider would be in the best interest of the residents of the subdivision. 

“The city of Kyle’s municipal water supply has plenty of available water resources to supply Anthem as soon as they connect to our water system,” Kyle Mayor Todd Webster said. 

The extension of services to Anthem was a result of the city’s attempt to stave off Anthem’s need for water from Houston-based firm Electro Purificaiton (EP). 

Anthem, along with Buda and Goforth Special Utility District (SUD), were customers of EP, which sought to drill into what was an unregulated portion of the Trinity Aquifer to obtain water. 

The action led to the Hays County water wars, which in turn led to legislation that gave the Barton Springs Edwards Aquifer Conservation District the ability to regulate previously designated “white zones.”  

A meeting among the city of San Marcos, Kyle and Buda, as well as three potential customers of the EP well was held in 2015. During that meeting, Kyle came out as the lead potential provider of water for Anthem.

Buda’s contract with EP dissolved in late 2015, while Goforth is moving ahead with its plans to obtain water from EP, which obtained a permit from the BSEACD in 2016. 

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