Oneida City Council Ratifies Water Rate Increase

Oneida, TN (2012-01-12) The Oneida City Council has ratified a state-mandated water rate increase for customers of the Oneida Water and Wastewater District. Customers were billed at the new rate in December and the utility district began collecting the new levy this month.

By a 4-1 vote, with Alderman Cecil Anderson casting the lone dissenting vote, Oneida Mayor Jack E. Lay and the Oneida City Council voted Thursday night to approve a resolution adopting a higher fee schedule for customers of the Oneida Water and Wastewater Department. “We’ve sit on our behinds for ten years,” remarked Mayor Lay, explaining the utility district and Town’s lack of response to escalating operating costs had led to the sudden jump in rates.

While the Board’s action was required, the fee had already been imposed by the utility district. On December 23, 2011, most customers received a letter from Johnny Acres, Manager of the utility district, explaining the increase and disclosing the new rates. Customers began paying the new rate this month, an action questioned by Alderman Anderson. “Why was the new rate imposed in December instead of January,” he inquired. Anderson felt the rate increase shouldn’t have been imposed without being ratified by the city council. “(It) shouldn’t have (gone) into effect until we voted it in,” Anderson remarked. The state, commented Oneida City Recorder Betty Matthews, required the Town to start collecting the money in January. The city council didn’t meet in December. Thursday night’s meeting was a week earlier than normal, as Town officials were trying to meet a January 15, 2012 cut-off date for implementing new rates, a deadline imposed by the state.

The increase was the result of a November meeting of the state’s Water and Wastewater Financing Board, a division of the Comptroller of the Treasury’s office in Nashville. At that meeting, the state board reportedly discussed the financially distressed condition of the Oneida Water and Wastewater District, and voted to require the Mayor, Acres, and the members of the City Council to appear before them in March, if a new rate structure was not enacted that would bring the utility district into compliance with projected 2012-2013 budgetary requirements. “The state told us we had to do it,” commented Alderwomen Sharon Miller.

Given the current situation at the department, Alderman Anderson called for the dissolution of the water district utility board and the elimination of the manager’s position. “I’m not going to be responsible (for their actions),” commented Anderson. His motion failed for lack of a second.

In addition to its operating woes, it was also disclosed Thursday night, the utility district had been fined $7,500 by the State of Tennessee for allegedly adding a concrete barrier on the spillway riser at the Howard H. Baker reservoir, which resulted in greater retention of water and placed a greater burden on the dam. During a March 2008 inspection, state officials reportedly discovered the barrier, and ordered it removed. A subsequent inspection in March 2010 revealed the utility district had not complied with the order. As result, the Department of Environment and Conservation issued an order in November, giving the district 30 days to remove the obstruction and remit the penalty. The district, stated Lay, had removed about 1.5 feet of the obstruction. While it was too late to appeal the state’s decision, City Attorney Mark Blakley indicted the state might forgo a part of the penalty and accrued interested, provided the work had been completed to its satisfaction.

On the recommendation of Vice-Mayor David Lowe, the Oneida City Council and the Water Board will convene to discuss the future of the utility district in the coming week.