Emerald Bay Municipal Utility District

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Letter to District Rate Payers - Tuesday, July 23, 2024


The Board of Directors of the Emerald Bay Municipal Utility District met on July 15, 2024, to discuss the District’s financial position and actions needed to replace emergency expenditures since the start of calendar year 2024.

In the last 6 months, the District has had emergency expenditures totaling $280,640.70. A total of $97,524.00 was used to replace and lower motors, pumps, column pipe, and wire in Wells #1 and #2, and another emergency expenditure of $105,521.70 was required to replace and lower the motors, pumps, and column pipe of Well #3 when the submersible well pump failed on June 29, 2024. In addition, the current sludge removal system had to be upgraded because of the difficulty and inefficiency of the current sludge bagger at a cost of $77,595.00.

The requirement to overhaul District Water Wells #1 and #2 became crucial when the pumping draw-down water levels of the aquifers dropped to within 10 to 15 feet above the pumps and the water production of both wells dropped 25%. Additionally, a hole in the casing of Well #1 developed allowing water from the Queen City Aquifer to co-mingle with the Carrizo-Wilcox Aquifer.

Although the District has a large cash balance in the water and wastewater accounts, an estimated expenditure of approximately $700,000.00 has already been committed for the construction of (2) new ground storage tanks at Well #1. The TCEQ (Texas Commission on Environmental Quality) has noted to the District that the current ground storage tank must be replaced. Additionally, the District has installed (2) large 230 KW Diesel Generators and (6) small LP Generators over the last two years for $157,308.80 to comply with the state mandate for all water purveyors to be able to keep water available for at least 48 hours in an emergency.

In summary, the unexpected outlay of funds to correct the problems with the District's water wells and the sludge removal system has created an unexpected shortfall of available emergency cash reserves.

After an open board discussion, it was unanimously decided to assess the water and wastewater ratepayers of Emerald Bay and Mallards Cove at $115.39 and the wastewater ratepayers at Wind Cliff Harbor at $30.50 for four months beginning September 1, 2024.