Consultant: Water system is underrecovering by roughly $5.9 million, recommends further analysis
A Jackson Thornton presentation to Oak Ridge City Council reported a FY25-normalized water revenue requirement of about $17.04 million and a systemwide recovery of ~66%, implying roughly a $5.9 million gap; staff said a master plan and FY26 data are needed before any rate changes.
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Jim, the consultant who led the Jackson Thornton cost-of-service review, told the council the water fund's FY25-normalized revenue requirement is about $17.04 million and that one-time grant receipts should not be factored into rates. He said the study excludes depreciation as a non-cash need and emphasized that the residential customer base drives the system: "You're overwhelmingly a residentially driven system," and "94% of your customer base is residential," he said.
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