Maxwell Water becomes special utility district

Another Special Utility District (SUD) is taking charge of services in parts of Kyle with the approval of a resolution from city leaders.

On Jan. 22, the Kyle City Council approved a resolution allowing the Maxwell Water Supply Company (WSC) to become a SUD.

Assistant City Manager James Earp said the number of SUD areas in Kyle is increasing as the city is growing outward into rural areas. The Maxwell WSC is seeking approval from other surrounding municipalities as well, given it will provide resources to 2,700 new homes in the coming years.

“The city of Kyle has grown into the boundaries of several Water Districts, and those districts now find themselves providing water to an ever-increasing urban footprint,” Earp said.

The new SUD will impact an eastern region of Kyle near the city’s extraterritorial jurisdiction (ETJ) boundary. According to Maxwell WSC General Manager Justin Ivicic, the district’s service area has grown between five and eight percent in the last year.

“We are now beginning to see growth in our service area,” Ivicic said. “Which we’ll see even more as these new homes are finished. Those homes will increase our service population by two and a half times.”

The district’s relationship with Kyle will not change significantly as it transitions from a nonprofit organization to its own pseudo-municipality. The benefit to the change is more at a state and federal level, Ivicic said.

“A SUD will allow for more efficiency in hiring employees,” Ivicic said. “We’re looking to take out non-tax loans and there will be government subsets for insurance.”

Other districts in the area include the County Line SUD and Goforth SUD, which serve thousands of other homes in the area.

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