Crossville CIty Council approves merger talks with South Cumberland Utility District

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.   

March City Council Agenda looks at SCUD Merger, Handle Mill property, and new rules on dog tethering.

Crossville city council holds their regular March meeting Tuesday March 13 and will take up topics including a possible merger with the South Cumberland Utility District, discussion of possible purchase of the old Handle Mill property next to the Art Circle Library, upgraded traffic signal at West Avenue and Fourth Street and an ordinance regulating tethering of dogs.

Crossville City Hall

With several meetings and public hearings set for Tuesday, the audit committee meeting begins the evening at 5:15 PM and is followed by a public hearing at 5:45 PM on the plan of services for the proposed annexation of 8.75 acres of the Gardens and at 5:50 PM a report on annexation progress on the previous annexation of Orange Circle.

The council meeting starts at 6 PM.

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Council members discussed the proposal during their March work session. Under the proposal, the management and employees would remain the same and 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. Synergies of operation would include cross training of employees, convert software and convert retirement plans and health insurance.

Councilman J. H. Graham is proposing the matter and told the council at the work session that he nad Crossville finance director Fred Houston had prepared a pro forma report on how the finances would work.

“This pro forma clearly shows the $552,000 per year savings and what I believe would be significant savings to the city of Crossville,” explained Graham. When asked about matching the rates with those of Catoosa customers Graham said, “South Cumberland is charging $30 for 2000 gallons while the city's outside rates at $15.72 per 2000 gallons and we just can't swallow that the first year.” Graham added that it could possibly take 2 or 3 years to get the rates to match but the proposed $10 a month savings amounts to a 33 percent reduction over the current rates.

The matter of the possible purchase of the old Handle Mill is on the agenda and was briefly discussed during the work session. According to the discussion, the railroad property that passes through the property proposed for purchase will cost the city $22,500.

Council is expected to approve the changes to the contract with Tennessee Department of Transportation on the West Avenue Forth Street traffic signal upgrade. The signal will include crosswalks, ADA improvements and pedestrian lights. The city will be required to fund 20 percent of the ADA work, design, drainage and environmental certification.

Council will also be considering the first reading of changes to the animal ordinances that will change rules and when and how dogs may be tethered. You can read more about the dog tethering proposal at this link.