Lockhart secures vital water sharing agreement for future growth

In a recent government meeting, officials discussed a significant water sharing agreement that will impact the city of Lockhart. The agreement, stemming from a 2018 contract with the Guadalupe Blanco River Authority (GBRA), involves the delivery of 3,000 acre-feet of treated water to Lockhart, equating to nearly one billion gallons annually. This water is expected to start flowing later this year.

The city plans to sell a portion of this water—specifically, 500 acre-feet—on a short-term basis, with the agreement set to expire on December 31, 2028. The fixed rate for this water is established at $668.79 per acre-foot, plus a 5% administrative fee, potentially generating annual revenue of approximately $351,144.75. This revenue could help reduce project-related debt and fund capital improvements, alleviating costs for Lockhart's water customers.

City officials emphasized that the water sharing agreement is structured as a \"take or pay\" arrangement, meaning that payment is required regardless of whether the water is utilized. This arrangement allows Lockhart to maintain control over its water resources while exploring opportunities for short-term sales without impacting utility rates.

Additionally, the meeting addressed the need for utility easements associated with the second phase of the Gonzales Carrizo water supply project. GBRA has requested two easements from the city, valued at approximately $134,000, to facilitate a new delivery point for treated water. This new connection is crucial for enhancing the city's water supply resilience and diversifying its delivery system, which currently relies solely on the water treatment plant.

Overall, the discussions highlighted Lockhart's proactive approach to managing its water resources and ensuring future supply stability, while also addressing immediate financial needs through strategic water sales.