EXECUTIVE SUMMARY
joining the district - option 1
There are 46 substandard water lines (74,200 linear feet) in Apache Shores that do not provide adequate fire flow and need to be replaced.
These lines were installed undersized when Apache Shores was originally developed back in the 1970’s. Some lines were installed using PVC electrical conduit and not PVC water pipe. Lines were also buried too shallow, sometimes 6”-12” deep, making them vulnerable to breakage.
All waterlines everywhere have a life—cycle of 50 to 70 years. The PVC plastic material oxidizes and breaks down at the molecular level over time.
In rough numbers, Apache represents 11% of WCID17 customers and 45% of repairs. (2024)
60% of Apache Shores has zero fire flow, another 15% has inadequate fire flow.
There are many areas of Apache Shores that do not have fire hydrants at all. In other areas they are spaced too far apart - not meeting code.
The waterline replacements will provide rated fire flow of 1,500 gallons per minute.
Streets that are trenched for new waterlines will be repaved from edge to edge, but only for the length of trench, not the entire street. See the project map on the home page.
Joining the Water District allows Apache Shores representatives to be elected to WCID17 Board of Directors seats, thereby having a voice in their operations, policies, and decisions.
Joining the Water District corrects the 27 year problem of Apache Shores being the only “out-of-district” service area, not having representation on the WCID Board of Directors, and not having a revenue stream for O&M and capital improvements. (other than the out-of-district fee)
A petition is currently circulating to get signatures representing 51% of the property value of Apache Shores. As of March 21, 2026, there are signatures representing about 30%. The petition closes on May 31, 2026.
If the petition is successful, the WCID will begin taking steps to have the measure added to the ballot for the November 3, 2023 Election.
If this election is successful (by simple majority), the WCID will begin taking steps to begin the project.
The current out-of-district fee of $160/month would be terminated in December of 2026.
The ODF of $300/month will not happen because Apache will be “in-district”.
Bids will be solicited for Design Engineering services to design the 5 phases of the project and produce Construction Documents for the utility contractors to provide bids on.
Debt-service bonds will begin to be issued to fund design, construction, soft costs, and non-project costs.
A tax rate of $0.40 per hundred (estimated) in TCAD assessed property value would begin to be collected in January of 2028 (for the 2027 year). This tax would be to pay back bonds issued to fund construction costs ($7,285,000 bond par value) plus interest paid to bond holders, for bond terms of 25 or 30 years.
An O&M tax of $0.056 per hundred would also begin to be collected in January of 2028. This tax is collected district-wide and once Apache Shores joins the district, approximately 14,874 property owners would be paying this tax. In addition to routine operations & maintenance costs, a large portion of this tax revenue is set aside to fund future capital improvements projects.
So, the total (estimated) tax rate will be $0.456 per hundred in TCAD assessed property value. See “Dollars & Cents” for more information.
The project is planned in five (5) phases with a duration of approximately two years for both design and construction. Plan on areas of Apache being “under construction” for the next 10 to 12 years.
Note that the current balance in Apache Shores’ capital improvements account from (ODF’s) will reduce the bond par value needed to some amount less than $73 million. (Soft costs and non-project costs bring the current estimated total to $77,285,000.)
The project cost estimate (see link to Baxter & Woodman Report) includes a 30% contingency as well as a 3% per year inflation factor over 10 years. This is to ensure that the WCID does not need to have another election to see authorization for more funds, in the very unlikely event bids come in higher than expected.
Grants and low-interest loans will continue to be applied for (by WCID staff) throughout the duration of the bond issues.
Bonds may be refinanced to save money if interest rates drop.
Under the “join” option, bonds/bond holder interest will be repaid by all 2,075 Apache Shores property owners. Future capital improvements projects will be funded by 14,874 WCID17 property owners in the form of the $0.056/100 O&M Tax.
175 properties over $800k, representing 8.4% in number, will end up funding 24% of the repayment burden.
Property taxes are deductible on your tax return.
Assuming property values continue to increase over time at historic rates, the added WCID taxes paid will be recouped upon the sale of a property.
OTHER:
The WCID is not a "for-profit" private water corporation. It is a non-profit special government entity, with oversight by the State of Texas, the Texas Water Development Board [TWDB] and the Texas Council on Environmental Quality [TCEQ]. It operates under State of Texas statutes and regulations, as well as Public Accounting regulations and practices. They are audited and reviewed annually.
NOT JOINING THE DISTRICT - option 2
There is a public protest in process with the Texas Public Utilities Commission (PUC) seeking to overturn the $160 per month out-of-district fee.
Out-of-district fees are set at $160 per month for the remainder of 2026.
Out-of-district fees are slated to increase to $300 or more per month effective January 1, 2027. BUT ONLY IF WE DO NOT JOIN THE DISTRICT.
The higher level ODF will continue into perpetuity to fund future capital improvements projects as more water lines in Apache Shores reach the end of their life-cycle.
Revenue bonds will be begin to be issued to fund design, construction, soft costs, and non-project costs.
The bonds and interest paid to bond holders will be repaid via the out-of-district fees, but only by the (current) 1,517 WCID17 customers.
WCID17 has stated that the design/construction timeline for Option 2 will be longer than the stated 10-12 years under Option 1.
Bond par value of $77,285,000 as shown in the Baxter and Woodman Engineering Apache Shores Capital Improvements Plan - March 2025 remains the same for Option 1 or Option 2.
Everyone pays an equal amount - low income and high income equally.
Out-of-district fees will not be deductible on your tax return.
the third option - cash pay
A third option to fund the construction through out-of-district fees, without issuing bonds - a “cash pay” option - has been suggested to the WCID but was rejected.
Without resources to retain an attorney Apache Shores cannot fight this.
Saving $60 or $70 million in interest paid to bond holders seems to be the most equitable solution, but appears not to exist.
The fourth option - the “do nothing” option
The Apache Shores POA has filed a formal complaint with the Public Utilities Commission of Texas [PUCT] to protest the increase of the out-of-district fee from $80 to $160 for calendar year 2026.
WCID17 has filed a motion to dismiss. Link here.
PUCT has issued a deadline for the ASPOA to respond to the motion to dismiss by March 30, 2026.
All filings in Case #59231 - here.
Note that WCID17 is within their legal rights to take either of the two paths, and it is unlikely that ODF’s will be dialed back to $80/month.
If that were to occur, however, $80/month will generate $1,456,320 per year in revenue for O&M and any replacements that can be afforded.
Again, note that ONLY the 1,517 WCID water customers contribute under this option. Unimproved lot owners continue to get a free pass.
Every ten years or so, enough funds might be accrued to undertake one phase (of the five phases) of the project.
Based on this, it would take at least 50 years to complete the 46 waterline replacements currently on the table.
All of the other waterlines in Apache will be aging and degrading as time passes and will eventually need to be replaced. This option provides no funds for future replacements. It’s a pay-as-you-go scenario.
Or we limp along continuing to repair only.
Under this option we remain out of district, with no voice on the WCID board.
Both Option 1 and Option 2 have the same end result - the proposed WCID17 Capital Improvements Plan to replace the 46 substandard water lines will occur. Under Option 1, debt-service bonds will be issued. Under Option 2, revenue bonds will be issued. The bond par value (estimated total project cost) is the same under both options - $77,285,000. The bonds and interest paid to bond holders will be repaid with property taxes under Option 1 and through out-of-district fees under Option 2. Option 1 - The (estimated) $0.40/100 portion of the property tax will go to ZERO after all bonds and interest paid to bond holders are repaid. Option 2 - The out-of-district fees at $300-$320 per month will continue into perpetuity after the revenue bonds plus interest paid to bond holders has been repaid. Option 1 - we can gain seats on the WCID17 board of directors. Option 2 - we remain unrepresented. Option 1 - future financial responsibility for water infrastructure in Apache Shores is transferred to WCID17. Option 2 - future financial responsibility for water infrastructure remains with Apache Shores WCID17 customers. Option 1 - correct the 27 year mistake. Option 2 - remain out-of-district.
Some of our neighbors will be hurt financially under either option. Seniors and those on fixed incomes will be hurt financially under either option. Some will be forced to sell their property and move out of Apache Shores. Renters may see the increased property taxes under Option 1 passed on in the form of increased rents. Under Option 2, renters may be required to bear the burden of the $300/month out-of-district fee. This could effect the financial position of landlords.
There is no solution to this problem that is equitable to all parties, equally, across the board.
Option 1 is the least cost option to the largest number of property owners.