The Crossville City Council moving toward a November referendum to let voters decide whether to transfer key water infrastructure assets to the Cumberland Plateau Water Authority.
The decision would effectively clear the path for a regional water merger. City Attorney Randy York said the referendum would specifically ask voters to authorize the conveyance of approximately 10 acres at the Meadow Park Lake dam, 50 acres near the water treatment facility, and several parcels at Holiday Lake and Sparta Highway.
“In reality, it’s not a referendum to approve the transfer of those,” York said. “It’s to give City Council the authority to move forward and in their wisdom if they think that it’s appropriate to do that, to be able to go ahead and do it.”
York said the city currently faces significant regulatory obstacles and a lack of funding solutions to address the Meadow Park Lake dam on its own.
The council must approve a resolution by July to place the measure on the November ballot.
York said the city charter mandates a referendum for any transfer of property at Meadow Park Lake, and the results would provide the council with a clear mandate from the public.
“I don’t see the only option that I see, and this is just me personally, that I see for us ever acquiring a dam is to merge with the with the Water Authority,” York said.
Financial analyst Daniel Peterson said the city faces approximately $131 million in upcoming capital projects, including dam mitigation, a new reservoir, and sewer treatment plant expansions. Peterson said that if Crossville remains independent and pursues all projects, water ratepayers could see a cumulative rate increase of 63 percent over six years.
“Which number do you like better?” Peterson said. “Your revenue base is going to go up because you’re combining those two together. Your customer base is going to go up from 14 to 31,000, excuse me. So it’s clear to me and it’s a mathematical equation essentially if I’ve got $1.3 or $131 million of projects, $131 million of debt, and I’ve got a $17,000 or 14,000 customer base that I’m using as the denominator in that math versus a 32,000 customer base in that math, together is going to be better.”
Cumberland Plateau Water Authority General Manager Jeff Dyer said regionalization is becoming the standard across Tennessee to address aging infrastructure and rising costs. Dyer said the authority was specifically designed to help Cumberland County ratepayers maximize the benefits of a public utility through shared financial capacity.
“Joining the Water Authority, we all know the population growth, aging infrastructure, long term raw water supply concerns, increasing capital cost,” Dyer said. “Those increased costs, they’re happening to every utility across the state. Everybody has to deal with it, but there’s ways to mitigate some of the pressure off of that.”
Ross Colona of the Tennessee Comptroller’s Office said the state Board of Utility Regulation focuses on protecting all ratepayers, noting that many Crossville water customers live outside the city limits and pay higher rates. Colona said a merger would ensure everyone pays a fair share and provides a more stable financial foundation for the entire community.
“I haven’t heard a reason against this yet that that is based in facts,” Colona said. “Like, I I haven’t heard anyone show me the numbers or show me the money to where this doesn’t work out to the benefit of the customers of the utility.”
The council is expected to vote on the referendum resolution during its regular session next Tuesday.