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Communities seek water companies of their own
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Queen Creek is close to taking the plunge — and purchasing a water company.
And Florence is looking to also buy a water company.
Officials in each town say owning a privately run water company is a way to control each municipality’s future.
Queen Creek is in the final stages of buying the Queen Creek Water Co. for more than $36 million, and Florence is evaluating the purchase of Johnson Utilities for $192 million.
This week, Queen Creek plans to finalize the purchase agreement, and start the ball rolling on funding the purchase with a $40 million loan from the Water Infrastructure Finance Authority of Arizona.
Using that funding mechanism, the town stands to save money with below-market interest rates, Queen Creek Town Manager John Kross said.
“We’ve been very fortunate to be able to use the WIFA program for our wastewater infrastructure,” he said. “It’s a tremendous cost savings to our users.”
Next week at a special meeting, the Town Council is expected to finalize the application for the loan.
“We’re getting a very sound system that we’re very fortunate to be able to acquire,” Kross said. “Sometimes these large acquisitions can take some time. We’ve got a very anxious and willing seller that’s been very cooperative with us along the way. That’s really helped.”
Kross said the loan amount is for $40 million instead of the $36 million originally projected for the purchase because of some additional financing costs and studies that needed to be done as part of the application process.
“We don’t know that we’ll need all of the $40 million, but it gives us a little cushion for unforeseen circumstances,” Kross said. “We’re not contemplating anything major.”
Florence spokesman Jess Knudson said the town is continuing to evaluate the purchase of Johnson Utilities to see how the sale would benefit the area.
The utility provides water and wastewater services to more than 20,000 customers in Johnson Ranch and surrounding areas.
The assessment will also include an engineering study, financial analysis and growth studies.
The Florence Town Council voted in March to pursue the purchase from local developer George Johnson.
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