Crossville city council voted unanimously to move forward with seeking a possible merger between the city's water department and South Cumberland Utility District.
The city has previously merged with the Catoosa Utility District and that appears to have been a successful and the SCUD merger is expected to be similar. The city is promising a $10 reduction in the bill to each water meter initially and eventually, the water bills would match the outside city water rates.
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If the proposal is agreed to then it would create the South Cumberland Utility District of the City of Crossville. The benefits of the merger according to information distributed with the agenda include a reduction of water rates and a decrease in redundant capital for both SCUD and the city.
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Under the proposal, the management and employees would remain the same. Directors would become an advisory board and continue to be appointed by the County Mayor. The proposal includes a decrease of $10.00 per meter per month and returning some $46,000 a month to customers for a total of $552,000 per year.
The city is proposing to pay off the debts of the operation and save approximately $100,000 per year. Synergies of operation would include cross training of employees, convert software and convert retirement plans and health insurance.
Council member J. H. Graham, who also serves on the Lake Tansi POA board made the motion to begin merger talks with the city manager, city attorney and Graham involved in those talks. The motion received a second from council member Danny Wyatt.
The motion was approved unanimously.
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