The Sylvester- McCaulley Water Supply Corporation (WSC) finished the 2025 fiscal year with a drop in total net position of approximately $10,500, according to the annual financial report presented Monday night. Facing rising costs and a vacancy on the board, the corporation is moving into the new fiscal year with higher base rates.
Financial Strain and Rate Adjustments Gerald Rodgers of the accounting firm James E. Rodgers and Co., PC, presented the audit to the Board of Directors and the six association members in attendance. The report pinpointed the primary driver of the financial decline: the escalating cost of purchasing treated water.
The WSC operates a dual-source system. While customers south of Plum Creek are served by groundwater wells, the corporation’s "Northern Territory" relies entirely on water purchased from the City of Roby. As wholesale rates from the city have risen, the WSC has absorbed those costs, leading to the current deficit.
To stabilize the financial outlook and prevent further losses, the Board has implemented a $10 increase in the monthly base water rate. This adjustment aims to offset the inflationary pressure of water purchases and ensure the corporation can meet its operational obligations in 2026.
CURRENT REGULATORY CHALLENGES While the corporation recently resolved a state citation regarding its Emergency Preparedness Plan, a review of Texas Commission on Environmental Quality (TCEQ) records indicates several unresolved 'Open' violations that the WSC is currently addressing.
These violations are primarily administrative but point to gaps in reporting and public transparency:
Lead Service Line Inventory ( Open): Like many rural systems, Sylvester-McCaulley was required to submit a complete inventory of its service lines to the state by October 2024 to identify any lead pipes. State records show the corporation has not yet finalized this reporting violation.
Public Notice Deficiencies: The system has open violations for failing to provide required 'Public Notices' to customers regarding past monitoring schedules. This includes a failure to verify that customers were notified about routine chlorine monitoring delays.
Lead Consumer Notices: The WSC is flagged for failing to confirm that it notified specific homeowners of their lead tap sampling results within the mandatory 30-day window.
While these violations do not indicate that the water is unsafe to drink, they do highlight a backlog in the 'paperwork' required to prove compliance to the state and the membership.
BOARD VACANCYAND LEADERSHIP The meeting also addressed a shift in leadership. Board member Brent Whitefield has moved out of the association's designated service area and is no longer eligible to serve.
President Randy Kelly announced that the board intends to vote on a replacement at next month’s meeting. The position is open to qualified members of the corporation who reside within the service territory. Interested candidates are encouraged to contact the board immediately to express interest.