State Comptroller’s Office Pleased With Spencer’s Water Merger

The Tennessee Comptroller’s Office is happy with Spencer’s decision to sell its water and wastewater utilities to the Warren County Utility District.

Tennessee Comptroller Director of Communications John Dunn said this will be a major improvement for customers in Spencer. He said the issues with Spencer’s water system have been a major concern in the Comptroller’s office for years.

“The city of Spencer’s water system has been plagued with a number of issues including some pretty significant water loss issues,” Dunn said. “Financially as well. We believe that a merger between these two systems is really in the best interest of those customers there in Spencer.”

In 2022, the Comptroller mandated that Spencer consider alternatives to how the city’s water system functions. The state’s Water and Wastewater Financing Board suggested a merger. After years of resistance, Spencer agreed earlier this month.

“For at least the last year and a half, our office has been working with the city of Spencer on these issues, discussing them with the previous mayor, the current mayor,” Dunn said. “The current mayor, to her credit, has done a lot to bring the system into better financial condition and start working on some of the necessary infrastructure repairs that needed to be made.”

He said the state always foresaw that the best route for Spencer was to work with another utility on a merger. He said he believes that Spencer intends to get this done sooner rather than later.

“In the meantime, it’s likely that Warren County might kind of manage the city of Spencer’s system sort of in the interim before when the merger officially closes,” Dunn said.

He said another major contributor to Spencer’s decision was the fact that upon agreeing to this deal, Spencer became eligible for a $9.5 million Rehabilitation Grant from the Tennessee Department of Economic and Community Development. He said the grant will be another factor in helping Spencer residents get their water through a system of heightened quality and lowered expense.