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Water and sewer officials cite rising depreciation; no rate increase proposed
Summary
At a Trousdale County budget hearing May 22, the county’s water and sewer representatives presented a revised budget showing higher depreciation and slightly higher projected water sales; Heather Bay, chair of the water department board, said the draft does not include a new rate increase.
Trousdale County water and sewer officials told the county’s Budget and Finance hearing on May 22 that rising depreciation and recent equipment purchases are driving higher costs in the proposed budget, but the board is not proposing a new rate increase for customers.
Heather Bay, chair of the water department board, told the meeting the revised budget presented to the committee includes updated estimates for the 2024–25 year and that “that is not a rate increase that's been implemented. That's actually just the estimated of the 3.25%.” Bay said the board approved the updated statement at its last meeting and that the draft before the committee reflects that action.
The budget documents discussed project water sales rising by roughly $55,000 in the coming year (from an estimated roughly $2.80 million to about $2.85 million in the proposed budget). Committee members pressed staff about a roughly $250,000 increase in depreciation expense from the previous budget year, and Bay and department staff attributed much of the change to recent capital purchases, a new department building and a larger inventory of service equipment.
Committee members asked for details about the department’s fleet and equipment counts. Department staff said the department lists 53 total pieces of equipment, which include 17 vehicles. Staff described a distinction in accounting between vehicles and other field equipment and said recent purchases and added capital assets are increasing depreciation expense.
Committee members also questioned several line items: testing expenses were noted as running about $9,000 over projection for the current year, and staff said the overrun is “a diversified split between the department” that reflects more testing and increased tank services. Staff and board members discussed a strategy of performing more maintenance and services in-house — citing the new building as a way to reduce third-party contractor costs — as one approach to limit future customer rate pressure.
No formal motion or vote was taken during this portion of the hearing. Committee members repeatedly raised concern about keeping the utility affordable for residents if depreciation and equipment costs continue to rise; staff said the goal is to minimize customer increases while acknowledging higher operating and capital costs.
The budget hearing continued to other items after the water and sewer presentation.
