Gainesboro Aldermen voted Thursday night to approve a two-percent increase to water rates.
Gainesboro Mayor Lloyd Williams said the Tennessee State Comptroller approached the town and warned that it was losing money every year on its water rates. If the water utility does not become profitable, the Comptroller’s Office holds the authority to step in and adjust the rates.
“We’ve had to find a solution to make us profit,” Williams said. “We have to show a profit every year on the water. We can’t show a loss, and so we kind of agreed on two percent, and it’s really helped us out a lot. Our water’s in pretty good shape right now.”
Board Member Eric Bartholomew said the town increases water rates every year but still has not been profitable up to this point. Williams said the increase will go into effect July 1, 2024.
Meantime, the board tabled a resolution to set 2024-2025 property tax rates at 80 cents per $100 of assessed property value. Williams said the rate would be the same as it was in the 2023 fiscal year. The board opted to wait until its budget meeting on May 14.
The board also approved a draft of its 2024-2025 budget, but will wait to discuss possible employee raises and other details at its May 14 meeting.
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