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Ocoee Utility District enacts 150% wastewater rate increase as county weighs ARPA funds and regional options
Summary
Ocoee Utility District officials told the Bradley County Commission they implemented a 150% wastewater rate increase after a state-ordered study, warned wastewater revenues remain below cost of service, and said $3 million in ARPA funds could help support either a new plant or a regional hookup.
Ocoee Utility District General Manager Ben Witt told the Bradley County Commission on April 13 that a third-party study ordered by the Tennessee Comptroller had been completed and that the district has implemented a 150% wastewater rate increase to begin addressing long-standing shortfalls.
Witt said current wastewater revenues are significantly below required levels and that roughly 8,400 water customers are subsidizing wastewater operations at an annual cost of about $400,000. He told commissioners the system would need roughly 533 additional residential wastewater customers to reach self-sufficiency at the prior rate structure and that the district currently operates fewer than 11.5 miles of sewer main serving 93 wastewater customers.
The report attached to the meeting record recommended a phased rate approach; a six-year financial model included in the attachment projected operating, depreciation and interest costs rising into FY 2026 and FY 2027 and indicated wastewater revenues would not meet cost-of-service without rate increases and additional customers. The report's author recommended wastewater rates at 150% to 200% of water rates as a first phase toward long-term sustainability.
Witt said the district must either construct a new wastewater treatment plant or, preferably, establish a connection with a regional provider. He said a new plant would add approximately 100,000 gallons of capacity and could accommodate about 330 homes. Witt also stated $3,000,000 in American Rescue Plan Act funds are available to support infrastructure upgrades and to facilitate a regional connection, and he indicated there are no plans for further rate adjustments before the end of fiscal year 2027.
County Mayor D. Gary Davis reported separately that the county has a contract with Cleveland Utilities to convert outdoor lighting at the cannery to LED and that the contract will total $143.00 per month and include maintenance.
The commission did not take a formal vote on wastewater policy at the work session. The matter will proceed through the county's budget and voting-session process; staff set budget hearings for April 16 and the next voting session for April 20.
