Lost Creek Rejects Proposed Agreement

June 20, 2007 -- The Board of Directors of Lost Creek Municipal Utility District voted unanimously at a special meeting last night (June 19) to reject a proposed Strategic Partnership Agreement (SPA) with the City of Austin. The agreement would have delayed annexation by Austin of residential portions of the Lost Creek neighborhood until January 1, 2016.

"Our board rejected the SPA for a number of reasons, including that the proposed agreement did not provide reasonable and equitable benefits for the residents and customers of our Lost Creek MUD," said Rick A. Cherye, the board's chairman.

"Importantly, the proposed SPA also did not include an option for the residents of Lost Creek to form a limited district that would operate and maintain our parks and enforce deed restrictions after annexation, even though the City has authorized such districts in every other strategic partnership agreement it has adopted with other newly annexed districts."

As a result of the vote to reject the SPA, the Lost Creek Municipal Utility District and the City of Austin will enter legal proceedings on a SPA that the MUD proposed last year.

"We hope the legal process will promptly generate a SPA that is fair and equitable to both the citizens of Lost Creek and the City of Austin," said Cherye.

posted: Thursday, February 21, 2008