The City Council has approved purchase of a water system that supplies three subdivisions on the city's east side.

The council authorized the water department to spend $119,678 from its operating fund surplus to purchase the reservoir, well pump station and line systems that serve the Indian Springs, Viewpoint and Sunset Hollow subdivisions.The system is designed to eventually feed 180 lots in the area, but only 37 lot owners have purchased hookups. By purchasing the system, the city could make a profit if enough hookups are made before 2002. That is when the original contract would have reverted back to the city, said City Engineer Jack Balling. The city will now keep hookup fees that cost lot owners $3,900. As part of the existing contract the city already collected hookup fees and maintained the system, but passed fees on to the developer.

Balling said the purchase will make nearly all water lines serving city residents part of the city-owned system. The system will provide 500,000 gallons of water storage and boost emergency supplies for fire protection.

The system will be purchased from Tracy Collins Mortgage which acquired the system from the original developers of Indian Springs. The purchase price is estimated to be 28 percent of the potential value of the system.