City of Spencer Aims To Balance New Budget’s Revenues and Expenses

Spencer’s new fiscal year budget approved Thursday night includes more than $6 million in pending water system spending.

That includes some $2.5 million for a new raw water intake source on the Caney Fork River, and $1.5 million for a water line replacement project.

Spencer Mayor Alisa Farmer said overall the city remains cautious in spending while increasing some fees to cover actual utility costs.

“But basically we’re trying to recover from where we were actually hemorrhaging in all aspects,” Farmer said. “We’re trying to tighten up the reigns and recover some of our losses as far as revenue stream is concerned.”

Overall the budget included some $1.2 million in General Fund spending.

Farmer said projected revenue increases in the budget include increased tap fees for new construction. She said the current fee to install 3/4″ line is $950.

“A Tennessee Association of Utility Districts study showed we needed to charge $1,500 to cover our costs,” Farmer said. “We’ve been losing money with every installation.”

Farmer said one concern in the budget is sorting out all the complications of permitting, environmental surveys, land, equipment, and purchases, and project coordination to use the $2.3 million in American Recovery Plan funds by the September 2026 deadline.

“We are just a little shy of two years right now,” Farmer said. “A lot has to take place within the next two years in order to not lose that ARP money.”