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Council directs staff to study West Cumberland utility merger, asks for financial options
Summary
Council received a formal request from West Cumberland Utility District asking the city to prepare a merger proposal by Jan. 20, 2026. Members asked staff to prepare cost and rate scenarios after discussing West Cumberland’s roughly $3 million debt, about 2,200 customers, and potential pump‑station costs.
The Crossville City Council discussed a formal request from West Cumberland Utility District asking the city to prepare a merger proposal by Jan. 20, 2026, and asked staff to return with numerical options and deal-breaker items.
"We received an official request from West Cumberland to consider a merger with them and to prepare a proposal to do so," said the staff member leading the presentation. Council members and staff then debated financial exposure, what accepting a merger would mean for the city and whether the city could match competing offers.
Councilors and staff cited the district’s indebtedness and customer count during the discussion. "They've got the highest water rates in the county, and they're looking for some relief," a staff member said, and another staff member summarized the district's situation as "roughly $3,000,000" in debt and about "2,200" customers. Officials said a pump station to connect systems could cost between $202,100 and $500,000.
A staff member summarized an outside offer the water authority made in a public presentation: "They would pay off all of their debt immediately," and said that the water authority proposed immediate wage increases for employees and a 5% discount for existing customers.
Council members stressed they needed detailed figures before deciding whether to make a formal offer. One council member asked staff to identify "deal breaker" items that would stop staff from spending time on a proposal; another said, "I would like to see some numbers, and just as diligently as everybody could work, let them know we're in good faith trying to come up with a proposal."
The council did not vote on a merger. Instead, members asked staff to prepare proposals and analysis on possible terms and costs and to report back in December so the council could consider putting the matter on a future agenda. Staff cautioned that any eventual merger would require approval by the county mayor and a public hearing.
Next steps: staff will prepare numerical scenarios, identify absolute requirements from West Cumberland, and attempt to meet the Jan. 20, 2026 timeline; the council will review options before any formal decision.
