Flower Mound Adopts Resolution Reaffirming Opposition to UTRWD’S Lake Ralph Hall, Debt Load, and Rising Water Rates

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Flower Mound Adopts Resolution Reaffirming Opposition to UTRWD’S Lake Ralph Hall, Debt Load, and Rising Water Rates

The Flower Mound Town Council passed a resolution on April 18 reaffirming a request for a Contested Case Hearing with the Texas Commission on Environmental Quality (TCEQ) relative to the Upper Trinity Regional Water District’s (UTRWD) proposed Water Use Permit for Lake Ralph Hall. The resolution mirrors a resolution passed in 2006 requesting the contested hearing from TCEQ regarding the proposed reservoir to be located in Fannin County.

In the resolution adopted by the Town in opposition to the construction of Lake Ralph Hall, numerous reasons were advanced for the Town’s opposition, including the questionable financial condition of the UTRWD, the organization’s inflated population and water demand projections, understated construction estimates and high sedimentation rates for the lake, and the high per unit cost of water from Lake Ralph Hall that will further contribute to the increase of water rates. The UTRWD is one of two water suppliers to Flower Mound. The Town has contended for many years that the UTRWD has overbuilt its infrastructure based on inflated population projections and subscription figures, ultimately resulting in continually increasing water rates for Denton County residents. The District currently carries more than $351 million in debt, and plans to add another $67 million in the next five years. The organization’s debt to revenue ratio has the potential to negatively impact the bond ratings of not only the District, but also those of its member entities.

The District’s financial condition creates doubt in the organization’s ability to complete Lake Ralph Hall. In addition, the project’s construction cost estimates were understated at the time of initial planning. Flower Mound contends that inflated population and demand projections, combined with the district’s ability to access other surplus and reserve water sources make this costly project an unnecessary financial burden for the residents of Denton County who receive UTRWD water.

Posted 05/05/2011.