Athens City Council votes to dissolve AMWA

By Michael V. Hannigan
Henderson County Now

The dispute between the City of Athens and the Athens Municipal Water Authority (AMWA) entered a new stage Monday night. During their regular meeting, City Council members voted 5-0 on the first reading of an ordinance to dissolve the AMWA and take over the city’s water service.

Earlier this month, the water district filed a lawsuit against the City in the 173rd District Court alleging the City is in brdeach of contract, breach of fiduciary duty, is negligent and has committed fraud.

In its simplest terms, the argument is over who has to pay which bills for the operation and maintenance of Lake Athens, the dam, and the water treatment and transportation facilities. The AMWA’s lawsuit also asks to be reimbursed for 10 years of bills, which the suit says could be for an amount “in excess of” $4 million.

But Monday’s action puts the very existence of the water authority in question.

The ordinance read Monday evening cites the Texas Local Government Code as the authority for dissolving the AMWA.

Section 43.074 reads, in part, “A water control and improvement district, fresh water supply district, or municipal utility district created from area that, at the time of the district’s creation, is located wholly in a municipality may be abolished … on a vote of at least two-thirds of the entire membership of the governing body of the municipality … if the governing body finds that the district is no longer needed; or the services furnished and functions performed by the district can be furnished and performed by the municipality.”

In a press release issued Monday night in which it called the AMWA “an extra layer of government at a time when governments need to streamline and reduce unnecessary costs,” City staff wrote: “During the course of the months-long negotiation process prior to mediation, the City Council and City Staff have studied the services provided by AMWA … and determined that the City can provide critical water services to the citizens of Athens without AMWA – therefore removing the extra expenses AMWA adds for taxpayers and water customers.”

In fact, through all but the most recent history of the 56-year-old AMWA, City employees have filled all the positions of the water authority.

The second reading of the ordinance is set for Monday, Jan. 13, during the next regular meeting of the City Council.