Water & Wastewater System
Construction and operation of the Town's water and wastewater system (the "Utility System") as it now exists or as it may be expanded from time to time are subject to the regulatory jurisdiction of federal, state, and local authorities, including the Texas Commission on Environmental Quality (TCEQ).
Upper Trinity Regional Water District Contracts
The Upper Trinity Regional Water District ("Upper Trinity") was created by the State of Texas to create and operate regional water and wastewater systems in Denton County and surrounding areas. The Town has entered into two separate contracts (defined herein as the "UTRWD Contracts") with the Upper Trinity as follows: "Upper Trinity Regional Water District Regional Treated Water System Participating Customer Contract With Denton County Fresh Water Supply District Number 9" ("the Water Contract"), and "Upper Trinity Regional Water District Northeast Regional Water Reclamation System Participating Customer Contract With Denton County Fresh Water Supply District Number 9" (the "Sewer Contract"), each originally dated August 29, 2001, and subsequently amended.
Pursuant to the UTRWD Contracts, Upper Trinity pledges to deliver certain wholesale water supply and wastewater services as required to serve the needs of the property owners within the Town. The Upper Trinity system for providing water and wastewater to the Town is financed by Upper Trinity through the issuance of bonds payable from and secured by payments made under the UTRWD Contracts and other similar contracts with other members and customers of Upper Trinity. Pursuant to the UTRWD Contracts, the Town has agreed to fix and collect water and sewer rates, sufficient to meet its payment obligations under the UTRWD Contracts.
Pursuant to the Water Contract, the Town has the contractual right to 2,400,000 gallons per day (gpd) of treated water. This is sufficient to serve at least 2,400 single-family residential homes. For treated water, the Town is required to pay an annual Demand Charge and a monthly Volume Charge. These charges are set each year in September by Upper Trinity.
Pursuant to the Sewer Contract, the Town has subscribed for 360,000 gpd of wastewater service from the Upper Trinity Riverbend Plant. For 2013, the Town has been delivering approximately 360,000 gpd of wastewater to the Riverbend Plant. Pursuant to the Sewer Contract, Upper Trinity has committed to issuing bonds from time to time to expand the Riverbend Plant to serve the Town and other customers. For wastewater treated at the Riverbend Plant, the Town is required to pay an annual capital charge (payable in 12 equal monthly installments) and a monthly charge per 1,000 gallons of wastewater treated. These charges are set each year in September by Upper Trinity.
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