The La Joya Water Supply Corp. may finally be delivered into the hands of its new board this summer.

But the organization is still facing tough decisions and tight finances, and its low-income customers are unlikely to see a drop in their bills soon.

The troubled utility, which provides water to 13,300 customers in Peñitas, Palmview, Mission and Sullivan City, was put into court-ordered receivership in 2005. Former administrators were accused of theft and mismanagement after an audit revealed missing funds, crumbling infrastructure, billing irregularities and unpaid debts.

The board of the utility's new iteration, the Agua Special Utility District, took office in November with the hope of assuming the assets and debts of the water supply corporation by early 2008. The transition is now scheduled for Sept. 1.

"They should have been ready to go a lot sooner," said state Rep. Kino Flores, D-Palmview, one of the state legislators who pushed for the special utility district. "But the progress is evident and you can see there's some good taking place. Everything is back on track."

On the to-do list before the switch-over: Rewriting all of the corporation's contracts, creating a budget and setting rates for water service.

The board must also decide what to do about adding sewer service to its functions.

La Joya Water's first attempt at building a sewer system alienated nearly all of its customers, who were presented with the prospect of a mandatory utility bill as high as $100 a month.

City officials say sewer service is vital to attracting big-box retailers, while state officials argue the area's current septic system could present health concerns if western Hidalgo County were to flood.

"I'm glad we don't have to make this call," said David Mendez, the attorney for the receivership.

The receivership has come under fire from a group of developers who sued over subdivisions stalled by La Joya's lack of water plant capacity.

Settlement talks in the case have failed twice, and the suit is set for trial in August.

Meanwhile, Mendez and receiver Pablo Vela Jr. say they are handing back a stable, well managed water utility. A new water plant is under construction which should bring La Joya into compliance with state regulations, and they have been trying to find free water by digging groundwater wells to avoid paying for rights to water from the Rio Grande.

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Sara Perkins covers Mission, western Hidalgo County, Starr County and general assignments for The Monitor. You can reach her at (956) 683-4472.