The dissolution of the agreement between the City of Kemp and West Cedar Creek Municipal Utility District has resulted in Kemp residents being assessed a $25 per month surcharge.
The City Council assessed the surcharge March 28, 2017. Council members said the surcharge was necessary to finance improvements to Kemp’s water and wastewater systems.
WCCMUD and Kemp entered into an agreement for the utility to provide services for Kemp, but that agreement fell apart in late 2016 after a legal dispute erupted between city officials and the utility management.
Mayor Laura Peace said the surcharge would be reduced as soon as possible. She blamed the utility’s management, saying it failed to live up to the terms of the agreement.
Utility officials claimed the city owed it money for improvements made for Kemp. Peace countered that the agreement signed three years ago did not include provision for such a payment.
Mediation failed, and a legal battle is anticipated.
Now, city officials say they must make improvements that previous city officials failed to address for over three decades.