According to Smithville Mayor Taft Hendrixson, The City of Smithville stands to eventually lose it's largest water customer and over a half million dollars in sales each year if DeKalb Utility District goes through with plans to build its own water treatment facility.Hendixson said that it would mean increases in water rates to city customers as well as those served by DUD if the proposal is enacted. DUD entered into a ten-year agreement with the City of Smithville in 2004 to purchase water at $1.60 per thousand gallons with a five cent escalator increase per thousand gallons each year of the contract.DUD currently pays $1.95 per thousand gallons. By law, the city must sell the DUD water at no less than cost.