Thursday, March 28, 2024
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Cookeville Water Concerned With Increased Chemical Costs, Could Mean Rate Increase

Concerns with recurring increased costs have Cookeville’s Water Department exploring ways to increase fund balance.

Director Barry Turner said that based on current costs, he estimates an additional $1 million for chemicals in the coming year’s budget. He said that shortfall is funding that cannot be spent somewhere else.

“That really hits harder than the water plant expansion because it’s a recurring (cost) so it will keep going,” Turner said. “So I’ve got some money in the budget to look at a rate study.”

Turner said that does not necessarily guarantee a need for a rate increase. However, he said with many projects and the increased chemical prices, there is a recurring cost that needs to be covered.

Turner said the City of Cookeville is about middle of the road for 5,000 gallons of water costs compared to similar cities. He said for the last five years the department has had a small increase to pay for the water plant and utility districts will see an increase in July.

“The chemicals expenses at the water plant, which this existing budget year is $840,000 estimated over and utilities at the water plant are $340,000 over,” Turner said. “And chemicals went up in the middle of the year too.”

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