Nixa Utilities looks to buy Tuscany Hills, RDE, water systems

NIXA, Mo. (KY3) - Some water customers in Christian County could see a change in what company they buy water from.

Nixa Utilities is in the process of buying the Tuscany Hills water and sewer system, and the RDE rural water system. The Tuscany Hills system is used for people in the Tuscany Hills community north of Nixa. RDE Water Company provides water to approximately 1,232 residential customers and 66 commercial customers, mostly in the north part of town.

“Council signed an asset purchase agreement, which is like a contract to buy a house, back in February,” says Nixa Assistant City Administrator Doug Colvin. “Tuscany Hills, that owner came to us. They had purchased a lot of the lots out there at one time and ended up with the utility and doesn’t want to be a utility owner.”

Colvin says even though it wasn’t the city’s idea, buying the systems presents opportunities for improvements as the city continues to grow to the north.

“It will provide some better service for that system, as well as the northern end of our system once we get those tied together,” says Colvin. “We’re currently in a situation where we’re looking at making capital investments out there anyway because of the growth that’s taken place out there. We could utilize more water in that part of the system. And so, by combining the systems it’s going to make a great impact for both on that end. So that’s what we’re doing. We’re planning for the future.”

The city would buy the Tuscany Hills systems for $500 thousand, and the RDE system for $2.5 million. Colvin says that money would come from utility revenue, not tax dollars from the general city budget and that existing customers should not see an increase in their utility bills. Colvin says Nixa Utilities could be running the systems as soon as late summer, if the purchase is approved.

“I’m sure that they have a million questions,” says Colvin. “Honestly we don’t have the answers to a couple of those yet because we need to get through some of the regulatory issues with the public service commission, with DNR, those types of things. So we don’t know the date when they would pay their last RDE or Tuscanny bill and when they would pay their first City of Nixa water bill.”

The Nixa City Council will discuss the purchase at tonight’s regular meeting. City leaders will discuss roughly $4.5 million in budget amendments, so Nixa Utilities can spend the money to buy the systems, hire personnel, and buy new equipment. Moving forward, Colvin says people who use those systems now should expect to see letters in the mail with information and invitations to public meetings.

Source: https://www.ky3.com/2022/05/09/nixa-utilities-looks-buy-tuscany-hills-rde-water-systems/