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MARBLE FALLS — If the drought that has left Texas parched for more than a year continues this spring, it could drain as much as $400,000 from city coffers, the EDC heard Nov. 2.

“That is not good, but it is something we are planning on now,” City Manager Ralph Hendricks told the Economic Development Corp. board Nov. 2.

The lack of rain, which is causing the worst drought in a single year since 1895, is swiftly draining the region’s two storage reservoirs, Travis and Buchanan lakes.

The Lower Colorado River Authority can order the city to reduce its water use by 20 percent if the drought persists this spring. The agency could impose fines and fees on the city if Marble Falls fails to comply.

Hendricks is confident the city can reduce its water use under mandatory restrictions.

However, less water use means less revenue for the city from water utility bills, he added. The revenue loss could equal as much as $400,000, he said.

Indeed, LCRA could raise their rates on water contracts to Marble Falls and other cities if the drought causes the authority to suffer financial losses, he added.

“There is a kind of domino effect,” Hendricks said.

The board listened without comment.

In other business, the board directed EDC attorney Monte Akers and Executive Director Christian Fletcher to respond to the most recent performance agreement proposal submitted by Ronn Motor Co.

Board members declined to reveal details. They discussed the issue during a closed-door session.

Basically, the performance agreement is an outline of and objectives for job growth at Ronn Motors.

During previous negotiations, the auto company indicated they would create 100 jobs for local workers. Recently, EDC officials said the company reduced the number to 16.

Ronn Motors plans to assemble a fleet of cars fueled by hydrogen at 1707 Colt Circle, where the environment-conscious car manufacturer rents a 66,000 square-foot building owned by EDC.

In other business related to the company, the board directed Fletcher to review and approve proposals to ensure the Colt Circle building complies with the Americans with Disabilities Act.

A recent inspection indicated four areas at the building fail to comply with ADA standards. The cost probably won’t exceed $8,000, officials said.

raymond@thepicayune.com

For more on this story, pick up a copy of the Nov. 6 River Cities Sunday Tribune.