Comptroller official urges Crossville to pursue regional water authority; council reviews West Cumberland proposal

Ross Quantico, introduced by the council as a representative of the Tennessee Comptroller’s office, told the Crossville City Council that a regional water authority could deliver long‑term benefits for customers and utilities on the Cumberland Plateau.

“Economies of scale are great,” Quantico said, calling the Cumberland Plateau Water Authority a “no‑brainer” for the region’s utilities. He said the comptroller’s office oversees roughly 450 Tennessee utilities and recommended third‑party cost‑of‑service studies every few years to ensure rates are “reasonable and just.” Quantico also criticized the common practice of charging outside‑city customers substantially higher rates, saying councils need a study to justify any surcharge.

The comptroller’s presentation focused on two points: that regionalization can lower fixed costs and improve managerial capacity even if a new water supply is not immediately available, and that regular independent rate studies are the proper tool to determine cost‑of‑service and equity between inside and outside city customers. He said the comptroller’s board would scrutinize any proposal that shifted costs onto city customers to subsidize outside users.

Council members pressed Quantico on whether state agencies and funders—cited examples included the Tennessee Department of Environment and Conservation—would publish incentives or funding conditions in writing for regionalization. Quantico said he had seen instances where TDEC conditioned certain funds on pursuing regionalization, but he did not offer a standing guarantee of new supply; rather, he emphasized that customers gain economic and managerial benefits from a larger utility.

After the presentation, the council turned to agenda item two: staff provided preliminary financial research on a possible proposal to bring the West Cumberland Utility District into the city utility system. The finance director said a full, defensible offer would take “six plus months” of contract review, operational due diligence and detailed accounting, but offered several working figures: a pump‑station reconnection was estimated at about $500,000; West Cumberland’s audit showed roughly $2.728 million in outstanding financing across two instruments and about $1,000,000 in cash or liquid holdings, though staff said that cash is needed for operations and ongoing projects.

Staff estimated West Cumberland serves roughly 2,200 customers and said including those customers could reduce their current rates under Crossville’s scale, though the director would not provide an exact customer‑level rate until a detailed review is complete. Council discussion touched on contract obligations (including an existing water purchase arrangement the staff identified by contractor name), employee benefits, potential impacts to Crossville’s enterprise fund, and whether accepting West Cumberland customers would require a rate increase for city residents if wholesale customers were lost.

Council members expressed mixed views on the workload and timing—some members noted the complexity and asked staff whether the matter should be tabled; others said they had a standing offer from the Cumberland Plateau Water Authority and urged continued engagement. No formal vote or final authorization was recorded during the work session; council directed staff to further study the financial, contractual and operational details and to return with a fuller proposal.

The discussion concluded with staff noting key next steps: a detailed assets and contract review, a cost‑of‑service analysis, a closer look at pump‑station connectivity and a staffing assessment should the city add the West Cumberland customer base.