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Committee explores contract with Maury County Water to collect city service fees for dual customers
Summary
Staff described about 100 accounts where Maury County Water supplies water while the city supplies sewer and other services; staff is exploring whether Maury County Water can bill the city's charges and enforce collections (including shutoff), and will check auditors and the comptroller before any contract.
The committee discussed a persistent billing and collection problem affecting roughly 100 accounts that receive water from Maury County Water while Spring Hill provides sewer and other municipal services.
Miss Holden described the issue: some customers are dual customers and, because Maury County Water supplies their water, Spring Hill cannot disconnect water service for nonpayment of municipal charges. “We cannot, because Maury County Water runs their water, if they don't pay their bill, we have no way to cut their water off until we receive payment,” Miss Holden said.
Staff reported preliminary conversations with Maury County Water in which the county water provider indicated willingness to bill Spring Hill services on its statement and exercise recourse (including shutoff) for nonpayment, subject to a contract and likely a small administrative fee per account. Miss Holden said staff will check with auditors and the comptroller’s office to confirm the legality and proper accounting treatment of such an arrangement before bringing a contract to the Board.
Board members raised broader options, including whether Spring Hill could assume the accounts directly; staff cautioned that utility districts and service-area changes would likely require state-level action and are not a simple bilateral negotiation between municipalities.
Members urged staff to pursue short-term contractual remedies to collect revenue owed to the city while also exploring longer-term structural solutions to avoid widening service/collection mismatches as development continues.
Staff will continue negotiations with Maury County Water and report back with legal and accounting guidance, and any proposed contract terms.
