The city of Austin has approved a significant increase in its financial contribution towards a crucial water infrastructure project aimed at improving water services for a disannexed area. In a recent unanimous vote, the City Council amended the cost participation agreement with Milestone Community Builders, raising the city’s contribution by an additional $5.5 million. This brings the total financial commitment from the city to $11.57 million.
This funding boost is specifically designated for the construction of a 16-inch water main and a 750,000-gallon elevated water reservoir. These improvements will support a new 49-home single-family development located at 1300 Lost Creek Boulevard. The original agreement, which was approved in 2021, had initially set the city’s contribution at about $6 million. However, due to rising material costs and construction expenses—largely influenced by disruptions in the supply chain caused by the Covid-19 pandemic—the budget needed to be adjusted.
The upgraded water lines are not only meant for the Milestone development but will also enhance water service for other properties located in the South Lost Creek Boosted Water Pressure Zone. The city is taking on a large portion of the costs, which include approximately 4,000 feet of new water main and covering 90 percent of the elevated reservoir’s construction expenses.
During the City Council meeting, Council Member Mackenzie Kelly raised important questions regarding how the disannexed residential project’s compliance with city environmental standards would be handled. Shay Ralls Roalson, the director of Austin Water, assured that the residents of the area would continue to be considered “retail customers” of the utility despite the recent disannexation from the city. “The construction site and the elevated tank are situated within the city’s full-purpose jurisdiction and must adhere to all city codes and requirements,” Roalson stated. She emphasized that the local water distribution system needed the upgrade to ensure the area had the necessary resilience and reliability.
Council Member Paige Ellis, representing the district that includes the new development, highlighted the safety benefits of the infrastructure. She explained that the Lost Creek neighborhood has limited routes for entering and exiting, which could pose challenges in emergency situations. She emphasized, “These are customers that will continue to utilize Austin Water, regardless of the disannexation status.”
Environmental advocates also weighed in on the project. Roy Waley, a leader from the Austin Sierra Club, criticized Milestone Community Builders for its service extension request in the environmentally sensitive Hays Commons area. He pointed out that the company appeared unconcerned about potential harm to local groundwater sources. “They claim they will follow the Save Our Springs Ordinance, but only when it is convenient for them,” Waley said, drawing parallels to disobeying traffic laws.
The Austin City Council’s decision to increase funding for the water infrastructure project highlights an ongoing commitment to improving resources for residents in newly disannexed areas. While concerns about environmental regulations and community safety remain, city officials have assured that the necessary standards will be upheld to ensure reliable water service for all residents.
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