The Rockcastle County town had been accruing tens of thousands of dollars in debt to Wood Creed Water District since 2006. The utility temporarily shut off service to some residents last November.
The purchase puts around 160 connections in Rockcastle County under the utility, which serves much of central Kentucky and the surrounding areas in the county.
Public Service Commission filings show the city agreed to sell its water system for $400,000 to American Water to pay off its debts. 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 post from the town’s Facebook page says those debts are now cleared.
A city spokesperson previously told WEKU that a shortage of licensed water operators in Kentucky had been a hurdle for the city, and officials wanted to sell to a licensed operator they’re comfortable can handle the system.
“Working with Kentucky American Water has felt like a true partnership, built on trust and shared goals, and I believe our customers will experience that same dedication and support,” Livingston Mayor Sandi Singleton said in a release.
The utility is also investing $600,000 into improving the Livingston water system over the next five years.
Utility rates for Livingston residents will stay the same until Kentucky American Water’s next rate case before the Public Service Commission.
