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Council approves task force to hammer out MOU for extending utilities to unincorporated developments

2777725 · March 25, 2025
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Summary

The council agreed to form a multi-jurisdictional task force to negotiate a memorandum of understanding that would clarify how developers outside Tipton city limits can access city and regional utility services; county staff said an MOU draft is targeted for April 24.

Tipton City Council members voted to form a task force to negotiate a memorandum of understanding (MOU) clarifying how developers in unincorporated areas can access Tipton’s utility services, council members said during the meeting at City Hall.

County and city officials said the task force aims to produce a draft MOU by April 24 so local governments and Tipton Municipal Utilities can set terms for service access, cost-sharing and project approvals.

Abby Smith, community development director for Tipton County, told the council the projects under discussion are concentrated along the Old State Road 28 corridor outside the city and that, on current estimates, the system has “enough for 500 homes until we get to 80% on our utility system. We are not talking about 500 homes. I want to be clear about that.” Smith said most developer proposals being discussed are phased and initially envision roughly 100 homes per phase.

Speakers at the meeting said the task force would address capacity questions and who pays for future expansions if development outside the city requires city utilities. The county’s RDC (regional development commission) recommended forming the task force after a broad meeting with utilities and city representatives. The membership proposed at the meeting included the mayor, two city council members, Tipton Municipal Utilities (TMU) leadership, one county commissioner, county council members and school-board representation.

Council President Nate accepted a nomination to serve and, together with Council member Tim Richards, will represent the city on the committee, council members said. Tracy Powell (county commissioner) and Mike Terry (county council member) were identified by county speakers as intended participants; TMU representation named during discussion included Director Ankram and Don McElfresh.

County staff said the task force should be brief and focused so the MOU can guide near-term development reviews. Council members who spoke noted the task force will need to address financing and incentive structures, and that the city’s participation in any extensions of service will require mayoral approval.

The council voted to approve forming the task force and appoint city representatives; members said staff will begin scheduling meetings by email and attempt a rapid timeline to complete an MOU draft.

The task force will report back to the council with proposed terms and any recommended city actions or approvals.