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

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 districtto 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 boardstaff 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'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 boardopted for a time-limited path intended to incentivize the district to complete audits and regulatory compliance while preserving the community's ability to negotiate terms in the near term.