In negotiations Tuesday, the Killeen City C ouncil agreed to build a new $3.4 million water tower for the proposed Bell County Municipal Utility District No. 2,as it moves toward a final agreement next week,
The 1,400-acre MUD development is expected to bring 4,500 homes to a 4-mile-long tract of land that abuts the city limits at the intersection of Chaparral Road and East Trimmier Road.
Residents of MUD-2 would buy their water from the city of Killeen and new water revenue is expected to help pay for the new tower, according to the draft consent agreement between the city and local developer Bruce Whitis.
Whitis will need the council’s endorsement for his bill to establish a new taxing entity in Bell County through the 83rd Texas Legislature, which is currently in session.
Taxes from MUD-2 would pay for utility and transportation infrastructure, garbage collection and other services inside the property, which is outside the city limits.
The city plans to annex the land in 15 to 20 years, according to Killeen’s water and sewer master plan.
At a Tuesday council workshop, members learned that the increase in demand for water will require a new 1 million-gallon elevated water tank to be built in south Killeen in seven years.
The current water infrastructure is only enough to supply sufficient water through the first 1,500 homes — or the estimated number of homes to be built in the first seven years of the project, said Steve Kana, Killeen’s director of water and sewer utilities.
“The density of that development is much, much more dense than what is estimated in the master plan for that (extraterritorial district) to the south,” Kana said.
According to the water and wastewater master plan, Killeen had planned to build a $3.5 million elevated water tank to service that area in 2028. MUD-2 would move that date up to 2021, depending on how fast the houses are sold.
If MUD-2 is fully built, it is possible that the city would need two 1 million-gallon tanks by 2028, Kana said.
Interim Finance Director Martie Simpson said that seven years into the project the city would have accumulated $3.6 million in gross water and wastewater revenues from the development.
City Manager Glenn Morrison said that figure was not “pure revenue” and did not include the cost of moving the water.
On Tuesday, council members Jared Foster and Jonathan Okray pushed for the developer to pay for the new tank.
“It seems to me if you are the one creating the demand for the product, you have some responsibility to generate the supply,” Foster said.
The council plans a final vote on the consent agreement at a special council meeting Tuesday.