The city of Livingston has finalized an agreement to sell its water system to Kentucky-American Water, according to a Public Service Commission filing.
Livingston buys its water from Wood Creek Water District, which temporarily ended service to some residents late last year. Livingston has been accruing tens of thousands of dollars in debt to Wood Creek since 2006.
The Livingston Municipal Water Works is being sold for $400,000 in order for that debt to be paid off. That includes $58,262 to Wood Creek and $66,130 in loans from the U.S. Department of Agriculture.
Livingston, which has around 200 residents in its city limits, doesn't make much revenue from its population, and major leaks over the years have also contributed to the debt.
A city spokesperson previously said Livingston wants to sell to a licensed operator they’re comfortable can handle the system, and a shortage of licensed water operators in Kentucky has been a hurdle for the city. Kentucky-American Water services much of central Kentucky, including the areas surrounding Livingston in Rockcastle County, according to a service area map.
The filing says utility rates for Livingston residents will stay unchanged until Kentucky-American Water’s next rate case before the Public Service Commission.