Bouton, Iowa—Xenia Rural Water District has filed a lawsuit against the City of Johnston, Iowa, in U.S. Federal District Court in Des Moines alleging that Johnston was violating Xenia’s federal rights under Title 7, United States Code, Section 1926(b). 1926(b) is a Federal statute designed to encourage rural development and protect rural water districts from encroachment by neighboring municipalities.
Xenia’s CEO and General Manager Gary Benjamin stated that Xenia’s suit against Johnston was necessary to protect the interests of Xenia members, comply with Federal Law, and assure compliance with Xenia’s loan agreements with the United States Department of Agriculture. Xenia’s Board of Directors approved proceeding with the suit at a special Board meeting held on November 2, 2018.
In 2017, Xenia was notified that Johnston planned to annex 550 acres of land situated within Xenia’s water service territory. Xenia staff met several times with Johnston representatives to discuss water service to the annexed area. Xenia explained that it had invested significant money and infrastructure in the area, and that Xenia has the capacity and capability to provide water service to all existing and future water consumers in the area. Xenia emphasized to Johnston, that Section 1926(b) protects Xenia’s service territory. Despite Xenia’s efforts to reach an amicable resolution, Johnston announced in a September 21, 2018 memo that Johnston intended to provide water service inside Xenia’s service area and that plans to extend city services were underway.
Xenia maintains that Johnston’s encroachment into Xenia’s service area, will deprive Xenia of its legal right to provide water service and result in the loss of existing and future customers, leaving fewer Xenia members to share in the fixed cost of operating the water district. Encroachment by Johnston, and taking water customers away from Xenia,would result in an increase in water rates for Xenia members.
(contributed article, Xenia Rural Water District)
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