[{"_1":2,"_112":-5,"_113":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6714024,"mediaKeyId","5422772-a94aa39fc45337ec02f4b5f3dbc3dd84","parentId",5422772,"title","Board moves to contested hearing after comptroller investigation finds governance failures at Sevier County utility","audioSeconds",3054,"startMs",9316000,"endMs",12370000,"viewUrl","/Search/View?dp=1&key=5422772-a94aa39fc45337ec02f4b5f3dbc3dd84&start=9316&end=12370","thumbnailUrl","https://assets.pipeline.soar.com/5422772-a94aa39fc45337ec02f4b5f3dbc3dd84/thumbnail_9316000.jpg","articleUrl","/articles/6714024/Tennessee/Board-moves-to-contested-hearing-after-comptroller-investigation-finds-governance-failures-at-Sevier-County-utility","mediaUrl","https://secure.pipeline.soar.com/6714024-d43358f9169687e0b0ccc7654f7fad7e/orig.mp4?Expires=1770459649&Signature=YbNOsqL5pkpDcamWeXuX8HkPmPNp~I20EKtY3EKqPlM-x~d~bBJCfYMbWUxNcxE3MkNrM~y6ZI9yZUzCLqz4WZzClZ4jQEwQTAoRjnndI20RkaQR57NaKFjcHMLHsEgjTeNXTzTPt~S5DPKpSS9f6BgOhNLvBaE9VosKS6cK78yQS~zC~zh7DFxhE0jAdlEcUCzGUpdMaAY7VqftOcNRuLPq39zIT-XFJ5O6ECws0m7ChXTF66hfqKjIR-SZgGs7fkrMhVAFvALWXH8H1LWMyYjPWjiP2U~3zmyWN4Njq0p9hS~BiCfMFgZGVNOfr3urpx4UinNhNAE7WJKDi2kIUg__&Key-Pair-Id=KUT5TJCACFTXG","author","Comptroller of the Treasury","date","2025-07-18T05:08:35.983Z","article","The Tennessee Board of Utility Regulation voted June 26 to initiate a contested-case hearing to determine whether two current commissioners at Sevier County Utility District should be removed from office, after staff presented a Comptroller Division of Investigations report alleging long-running management, internal-control and oversight failures.

Board staff summarized the investigative findings for commissioners and described a pattern of alleged misappropriation and operational gaps dating back more than a decade. Ross Colonna, board staff director, told the board the case traced to issues that predated current members but said the existing governing body had failed to act decisively when the problems persisted. \"This board failed their utility by allowing an environment to exist in which this manager got away with what he did,\" Colonna said.

The investigators' report detailed alleged unauthorized transactions, inadequate procurement and record-keeping problems that took place while a long-serving manager was in charge of Sevier County Utility District. Board staff said the board had met with the district, and some reforms had been implemented, but the comptroller\u0000\u0000\u0000\u0000\u0000's investigators recommended further action against current commissioners whose oversight the report characterized as inadequate.

After lengthy staff presentation and public comment, the board authorized staff to begin a contested-case process under the administrative hearings statute. The action will initiate an administrative-law process in which an ALJ will be assigned and a hearing scheduled; the TBOR will sit as the final decision-maker and may remove commissioners if the evidentiary record supports that outcome.

Why it matters: Commissioner removal is a rare and serious enforcement step. The contested-case mechanism provides due process: the affected commissioners will be entitled to representation, evidence, and an administrative hearing before the TBOR renders a final decision. Board members stressed the board\u0000\u0000\u0000\u0000\u0000's responsibility to protect ratepayers when governance breakdowns create risks to funds or service.

Board action: The board authorized staff to commence a contested-case hearing to determine whether removal is warranted. Staff will seek an ALJ assignment and schedule, and will present the investigative evidence to the board at hearing. The board authorized staff to close the contested case if the commissioners resign prior to the hearing.","mediaType","Video","parentTitle","Tennessee Board of Utility Regulation - 7/17/2025","oneSentenceSummary","Following a Comptroller Division of Investigations report documenting long-running internal-control and governance failures, the Tennessee Board of Utility Regulation voted to initiate a contested-case hearing to consider removal of two Sevier County Utility District commissioners.","taxTitle","Comptroller of the Treasury, Agencies, Boards, Commissions, and Councils, Organizations, Executive, Tennessee","taxId",16844,"location","Tennessee","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6714028,"State board orders training fixes, warns of pay recovery after staff finds officials fast-tracked mandatory courses",291,10899000,11190000,"/Search/View?dp=1&key=5422772-a94aa39fc45337ec02f4b5f3dbc3dd84&start=10899&end=11190","https://assets.pipeline.soar.com/5422772-a94aa39fc45337ec02f4b5f3dbc3dd84/thumbnail_10899000.jpg","/articles/6714028/Tennessee/State-board-orders-training-fixes-warns-of-pay-recovery-after-staff-finds-officials-fast-tracked-mandatory-courses","https://secure.pipeline.soar.com/6714028-c6cfe89c6d17b1cb83a1ba40159369c1/orig.mp4?Expires=1770459649&Signature=iYai2VYAv5g3NrtzeWgRZHW5UqWbIhnrfgesvEw-pA0KgMlDd9B9K3mKKB41OoiWssDwdBrpy4blQetmCAVFdIr1KtMoLw48NZFSOcYuI1WV1-pioUuA3PT-sWGaGYyWhZs1vCeKXUM6cHHafihXt8JCqBPHBvcElr10Vbm3LU0Pv03F1rSpVYP0LGOJJftpLLo~wTyJdfcC6w1~OI57e86nR9Dyz8bHpbSxzS1jUHpOUuzgRWZkEd17V2VAMtAwxzeZwUg-goWn2pQV-dI4Q617hJjRShLkg1N3zCb8olUuU4LGBzglSmL1wvF537066Zfy9OgC3ijm3i3OGbJNgQ__&Key-Pair-Id=KUT5TJCACFTXG","The Tennessee Board of Utility Regulation on June 26 ordered utilities and appointed board members statewide to correct shortfalls in required annual training by Oct. 31, 2025, after staff found that some officials had used a glitch in the online training platform to obtain certificates without watching the required content.

Board staff said the state training platform briefly routed certain videos through a public video site, allowing participants to skip ahead and immediately receive completion certificates. Staff identified dozens of instances in which attendees completed hour-long modules in seconds or minutes and then filed certificates with the state.

Dan Allen, assistant city administrator and general manager for Spring Hill Water, told the board his utility had discovered the issue and was instructing members who had obtained certificates incorrectly to rewatch the material. \"They understand they're not supposed to do that, and they're going to go back and rewatch those videos and correct it,\" Allen said.

The board set an Oct. 31 compliance deadline for officials and utilities already under training review, and directed staff to identify any individuals who had been paid per diem or other compensation while not in compliance. Board staff will present an accounting at the next meeting and may recommend recovery of funds if certificates were fraudulently obtained.

The board also adopted a formal subpoena-rescission guideline. The new policy empowers staff to withdraw subpoenas when a party cures the deficiency that prompted the subpoena, but requires board staff to notify the board chair and vice chair in advance and gives the chair or vice chair authority to require the subpoena remain in effect.

Why this matters: Board-member training is a statutory eligibility trigger for per-diem and is fundamental to oversight of local utilities. The board\u0000\u0000\u0000\u0000\u0000\u0000s action restores confidence in the certification process, sets deadlines for remediation, and creates a clearer enforcement pathway (including possible pay recovery) when training certificates are improperly obtained.","The board ordered October 31 compliance deadlines for required board-member training after staff found some officials used a platform glitch to claim certificates without completing videos. Staff was authorized to pursue restitution of per-diem where training was fraudulently claimed and the board adopted a new subpoena-rescission policy.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6714030,"Board tells Leoma Utility to catch up on audits and plans before merger negotiations proceed",3588,478000,4066000,"/Search/View?dp=1&key=5422772-a94aa39fc45337ec02f4b5f3dbc3dd84&start=478&end=4066","https://assets.pipeline.soar.com/5422772-a94aa39fc45337ec02f4b5f3dbc3dd84/thumbnail_478000.jpg","/articles/6714030/Tennessee/Board-tells-Leoma-Utility-to-catch-up-on-audits-and-plans-before-merger-negotiations-proceed","https://secure.pipeline.soar.com/6714030-68da52d67af13ce0c4cfd80ea1ce9c85/orig.mp4?Expires=1770459649&Signature=auSr7A1q-Pi71RQ5O1YqGNUfuYUX2OOPJ4qb~g76oGexzgz0j6LP4ZqoiaOtDGNiTTjIkwQYmG1HVMPPVoYsMCoMPKUa5MHoPUolHyIBYavnTKOBspPa5kGZAWMU4~LvcVg4EHGyIFs40PL3wjnv7e5KBujpKwAuM5iJL-S~o9X5j-7pCChE114XRS7OFOgEYWz2We2ypyVrqxNJRqImmimTiCIMQ71lCVYqCOZIT1czhZf9w35qqGHBreyoaf8r7E0lY10bVs6u7HEPLG8ZDuFDQX6Uaviofikho3-t1FR-ol~frJB1M4ZbN8dvfIJQwAPMn48d0-KbKSdl2-RRPg__&Key-Pair-Id=KUT5TJCACFTXG","The Tennessee Board of Utility Regulation on June 26 gave Leoma Utility District a firm, time-limited set of tasks to complete before any board-facilitated merger with Lawrenceburg Utility Systems proceeds. The board instructed the district to submit two years of delinquent audits, provide its most recent sanitary survey, show proof of implementation of at least one recommended rate adjustment, present a plan to meet the 24-hour storage/duplication requirement, and file an updated budget by Dec. 1, 2025.

The action followed a large public hearing and multiple public comments from Leoma residents and elected officials urging the board to preserve local control. Representative Clay Doggett and Lawrence County Mayor David Morgan both told the board residents did not want consolidation and asked for more time for the district\u0000\u0000\u0000\u0000\u0000\u0000to complete reforms. \"The people of Leoma are here because they deeply care about their community, their water, and their right to choose how they're governed,\" Mayor Morgan said.

Board staff said the district remains two years behind on required audits and had TDEC compliance items to resolve. Ross Colonna, the board\u0000\u0000\u0000\u0000\u0000\u0000staff director, described a mixed record: he acknowledged recent management changes and a new board but said the district had not yet demonstrated full compliance. \"We requested their audits and sanitary information and they remain delinquent,\" Colonna said when proposing the deadline.

Leoma residents Kayla Corbett and Corey Berdishaw told the board they oppose merger with Lawrenceburg on affordability and representation grounds — Corbett told the board her bills would rise \"drastically,\" and that community members view the merger as a loss of local control. Corbett told the board, \"This independence allows it to respond directly to local needs,\" and urged members to reject a forced consolidation.

Legal counsel for Leoma said personnel and governance changes were underway and that the district had recently completed a \"WFX\" feasibility/rate memo and other work. Several residents and the county executive also submitted petitions and said more than 1,000 customers oppose consolidation.

Board action: The board voted to require the Leoma Utility District to produce the two missing audits and the sanitary survey, show evidence of at least one rate adjustment adoption, submit a plan for 24-hour storage/duplication, and adopt a budget by Dec. 1. The board added that, if the district provides the requested material promptly, staff has discretion to accept the work and the board may not need to move forward with forced consolidation. If the items are not supplied, the board retains the authority to pursue merger orders or other enforcement actions.

Why it matters: The case illustrated the board\u0000\u0000\u0000\u0000\u0000\u0000's balancing role between technical oversight and extraordinary local political concern: Leoma residents mounted significant public opposition to consolidation, but staff cited chronic compliance gaps that historically drive merger recommendations. The board\u0000\u0000\u0000\u0000\u0000\u0000opted for a time-limited path intended to incentivize the district to complete audits and regulatory compliance while preserving the community\u0000\u0000\u0000\u0000\u0000's ability to negotiate terms in the near term.","After a packed public hearing and repeated assurances from local officials, the board ordered Leoma Utility District to submit missing audits, a sanitary survey and a plan for 24-hour storage by Dec. 1, 2025; the board will revisit merger options only after those items are complete.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6714032,"Tennessee board orders Ocoee utility to produce CIP, alternatives before debt moves forward",3267,2148000,5415000,"/Search/View?dp=1&key=5422772-a94aa39fc45337ec02f4b5f3dbc3dd84&start=2148&end=5415","https://assets.pipeline.soar.com/5422772-a94aa39fc45337ec02f4b5f3dbc3dd84/thumbnail_2148000.jpg","/articles/6714032/Tennessee/Tennessee-board-orders-Ocoee-utility-to-produce-CIP-alternatives-before-debt-moves-forward","https://secure.pipeline.soar.com/6714032-b637361c6879da16e6105389b55af9d0/orig.mp4?Expires=1770459649&Signature=bw7VRB4OrmlTuhcsoy2HPANL5BqNecKrjuafiIb7pJlaJR0-J322eqFoHy8pp-EvpHG0MFdAoYfWXBsmN8FWZi7nkmiZ2VRzwrFyyPyZ7QoJETcK905cYQuQBXv7ZOmp67RLRYKePQE6BxiD4OM4vu5odUkt6tKq9B-A3J7rK3QCuyuC1S3NN2rxZCRv9EqhLLcYQwSwOdP-Os1Mw81uWbSKVEeXi~FGaQPsV8yEXgZrtAacXf-8xpZ6vT7vWX1B9Uoa8mOu0g56xCuV~zk1oVlpPqkkMXQnvMC53ZIaZLUR8600vale~M91bwxYkQAu9Bkc0RCVvrO6~dwjoHMQaA__&Key-Pair-Id=KUT5TJCACFTXG","The Tennessee Board of Utility Regulation on June 26 directed Ocoee Utility District to pause any bond or grant actions until the district submits a detailed capital improvement plan (CIP) and at least two financing alternatives, after staff warned the board the utility\u0000\u0000\u0000\u0000\u0000\u0000is pursuing borrowing that could sharply increase customer rates. The board accepted staff\u0000\u0000\u0000\u0000\u0000\u0000recommendations and added a requirement that the district provide the CIP and alternatives for review before any debt proceeds or matching grants move forward.

Board staff flagged gaps between the district\u0000\u0000\u0000\u0000\u0000\u0000's engineering capital list and the rate studies presented to the board. Ross Colonna, the board\u0000\u0000\u0000\u0000\u0000\u0000's executive staff, told members an earlier study looked at roughly $51 million of projects while the district\u0000\u0000\u0000\u0000\u0000\u0000was seeking about $62.5 million in combined SRF and USDA financing and bonds. Colonna said staff was particularly concerned that the district\u0000\u0000\u0000\u0000\u0000\u0000had two different advisers recommending different rate paths and that one municipal adviser fee proposal appeared far above market norms.

Board discussion focused on affordability and the proposed pace and scale of borrowing. Colonna told the board the municipal adviser\u0000\u0000\u0000\u0000\u0000\u0000fee proposals for the packages of interim and permanent financing were externally large compared with commonly observed market fees and that the district had already been billed significant advisory fees. \"Board staff is genuinely concerned that the customers are not being adequately considered when looking at these capital plans,\" Colonna said.

Ocoee officials defended the outreach and planning. General Manager Tim Lawson told the board the projects reflect longstanding planning and that most of the proposed work addresses distribution and treatment needs. He described the district\u0000\u0000\u0000\u0000\u0000\u0000water loss problem as high and said customers currently receive substantial wholesale water to meet demand. \"It is pretty high. I think it is about 50%,\" Lawson said of the district\u0000\u0000\u0000\u0000\u0000\u0000water loss.

Municipal adviser Larry Kidwell, representing Kidwell & Company, defended his firm\u0000\u0000\u0000\u0000\u0000\u0000contract and said longstanding engagement and market experience shaped the proposed fee arrangements. Kidwell said his contract with the district predated current pricing comparisons and that different financing structures (including interim financing for USDA loans) affect total cost comparisons.

After questions about the scope, the rates required to support the debt and the magnitude of adviser fees, the board voted to accept staff\u0000\u0000\u0000\u0000\u0000\u0000recommendations with an amendment: before proceeding further the district must supply a CIP and at least two alternatives for how the program could be financed and phased, and staff will withhold support for debt or grant matches until it can determine affordability for ratepayers.

Board action: The board approved staff recommendations and added a requirement that Ocoee submit a detailed CIP and at least two financing/implementation alternatives for review; staff may grant limited extensions for good cause. The board noted concerns about advisory fees and the potential customer-rate impacts of multi-year, double-digit increases.

Impact and next steps: The requirement will slow the district\u0000\u0000\u0000\u0000\u0000\u0000's debt timeline and instructs staff and the district to produce more complete documentation and alternatives — including lower-cost or phased approaches \u0000\u0000\u0000\u0000\u0000\u0000\u0000\u0000\u0000\u0000\u0000before any formal bond or grant actions occur.","After detailed staff warnings about a $62.5 million financing plan, the Tennessee Board of Utility Regulation ordered Ocoee Utility District to supply a full capital improvement plan and at least two financing/implementation alternatives before any bonds or grant matches proceed.","actionData","errors"]

Article not found

Board moves to contested hearing after comptroller investigation finds governance failures at Sevier County utility

State board orders training fixes, warns of pay recovery after staff finds officials fast-tracked mandatory courses

Board tells Leoma Utility to catch up on audits and plans before merger negotiations proceed

Tennessee board orders Ocoee utility to produce CIP, alternatives before debt moves forward