Public Water Utility For Sale

Baxter, CO (Pueblo County)

Public Water Utility For Sale
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Asking Price: $925,000

Cash Flow: $72,600

Gross Revenue: $113,541

EBITDA: N/A

FF&E: N/A

Inventory: N/A

Real Estate: $5,000

Established: 1954

Public Water Utility For Sale

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Business Description

O’Neal Water Advertisement
This privately held company is the municipal household water supply to approximately 160 homes and 8 businesses in Baxter Colorado, a small community about 5 miles east of Pueblo on HWY 50. The company has the rights to 80 acre feet of water and by augmentation may purchase another 40 acre feet. Like all public utilities the price charged to each customer is set by the owner who requests final approval from the Colorado Public Utilities Commission (PUC).
This water company has been in business since May 31, 1954. Recent upgrades include over 2,000 feet of new water mains and main line valves, a new disinfection chlorinator system, two alternating submersible pumps and a new Variable Frequency Drive (VFD).

In 2014 the water supply and delivery system was subjected to the full and complete panel of quality and safety tests required every four years by the Clean Drinking Water Act and the system passed every test, no contaminants are in this water. The tests were done by the Colorado Department of Public Health and Environment (CDPHE) Laboratory and the official test results will be provided only to serious potential buyers. The water system facility was also subjected to a complete inspection by CDPHE in August 2014 and is in full compliance with all requirements that ensure the safety and protection of the water quality on an ongoing basis.

This small community is in the midst of a housing boom due to new companies moving into the area north of Highway 50 and the massive expansion of the PuebloPlex. The business can grow significantly larger by adding water line service to the many homes in the area that still get their water from their own individual well. Recent changes in requirements for buying or selling a house in Pueblo County require that homes with their own private water well must have these wells permitted by the Colorado Division of Natural Resources, Office of the State (water) Engineer which often results in delays and unexpected costs.

Additionally these private wells supply water not tested for contaminates as are public systems required by the Clean Drinking Water Act and many homeowners do not drink or cook with the water from their private well. This has resulted in more new customer requests for service than the current owner can complete.

Privately held water utility companies rarely come up for sale, more typically they are closely guarded and passed down from one generation to the next within a family. This might be the right opportunity for someone who is looking to be their own boss and drive the business to even higher profitability with active management.

Detailed Information

Inventory:
Included in asking price
Real Estate:
Owned
Included in asking price
Building SF:
400
Employees:
0.5
Facilities:
Home Based
Competition:
The costs associated with individual homeowners obtaining their water from another source is prohibited by both cost and the fact that the Public Utilities Commission confers a “franchise protected” status to the water company meaning no other water provider may encroach into this water company’s boundaries and compete for household customers.
Growth & Expansion:
Growth Potential: a future owner could significantly grow revenue by installing meters thereby lowering household consumption and reducing the cost of augmentation. Water is a resource that will always be in demand and this small community has been serviced by this company for over 62 years and that will continue indefinitely.
Reason for Selling:
Retirement
Home-Based:
This business is Home-Based
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