News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
Cookeville City Council will consider moving forward with the approval for a new water and wastewater rate study.
Water Quality Control Director Barry Turner presented the need for a study to city council members at a work session Monday night. He said the study will indicate whether the city needs to increase rates for residents and wholesale districts, which he foresees as a possibility.
“Probably on both, but we’ll have to wait and see the study,” Turner said. “Because we could potentially borrow some money and minimize that, but due to our chemical costs last year being about $850,000 more than the previous year, I think we’ll probably have to do something.”
The city implemented a staggered rate increase in 2018 after the last study was conducted. He said the study looks at not only how the rate is structured, but also how much revenue is needed, and whether borrowing money is needed to offset increases.
Turner said the final step increase from the 2018 implementation occurred this past May for residents and was implemented this month for the wholesale districts. Turner said the study is projected to cost some $49,230.
“The Tennessee Comptroller’s office recommends that a rate study be done approximately every five years,” Turner said. “But the current need for this is due to the increased costs we are seeing on capital projects, the number of projects that are needed, and the tremendous increase in chemical costs at the water plant that we saw last year.”
