Johnson City Commission approves funding plan for $54M water infrastructure improvements

Johnson City officials have approved a significant funding plan aimed at enhancing the city’s water and wastewater systems, ensuring reliable service and compliance with stringent regulations. During the Board of Commissioners meeting on April 17, 2025, the commission discussed an ordinance that allocates funding for a comprehensive capital improvements plan, which is projected to deliver approximately $54 million in debt-funded capital and an additional $26 million in rate-funded capital over the next four years.

The funding strategy, developed with the assistance of Raftelus financial consultants, aims to minimize the financial impact on residents while addressing critical infrastructure needs. The improvements are essential for protecting local lakes and streams, as well as maintaining public health standards. The city’s water and wastewater systems are among the most heavily regulated, overseen by various state and federal agencies, including the Tennessee Department of Environment and Conservation (TDEC).

City officials highlighted the importance of master planning, noting that the commission had previously approved four significant master plans in 2021. These plans serve as a roadmap for prioritizing improvements and ensuring the reliability of water and wastewater services across a service area of approximately 166 square miles. Key projects include upgrades to the Knob Creek Wastewater Plant and the implementation of smart metering technologies.

To fund these improvements, the commission proposed a modest rate adjustment for customers, estimated to be between $2 to $5 per month, depending on usage and location. This adjustment is designed to keep utility rates competitive while addressing the aging infrastructure and operational needs of the system. The proposed increases are expected to begin in July and will be phased in over four years.

The commission emphasized that the funding for these improvements primarily comes from user fees, as local utility systems operate as enterprise funds without relying on tax revenue. This approach ensures that the financial burden of maintaining and upgrading the water and wastewater systems is shared among users.

As Johnson City moves forward with these critical infrastructure investments, residents can expect enhanced service reliability and continued compliance with regulatory standards, reinforcing the city’s commitment to public health and environmental protection.