by Leslie Lytle, Messenger Staff Writer

At the March 18 meeting, the Sewanee Utility District Board of Commissioners voted to raise the capital depreciation threshold in response to a recommendation from the auditors. The board also took up a request from Deepwoods area residents for water service.

Before amended, the capital depreciation policy called for SUD to depreciate capital expenses costing in excess of $2,000. SUD’s auditors, the MG Group, suggested raising the trigger threshold to at least $5,000. Explaining, SUD manager Ben Beavers said, “$2,000 doesn’t buy as much as it used to.”

“We need to fund the depreciation,” SUD Board President Charlie Smith said in support of raising the threshold. “Anything we could save on that would probably be a good idea.” Raising the threshold means SUD has to set aside less money to replace capital assets.

“Most everything we buy is $3,500 and less for general operation things. Then there’s a gap and it picks up from $12,000 to $15,000,” Beavers observed.

Commissioner Donnie McBee brought the Deepwoods’ residents request to the board. “There are 14 or 15 people at the end of Deepwoods Road who want to know what it would take for them to get water,” McBee said. “They all went kind of dry last year.”

“There’s no good news for them,” Smith acknowledged. The residents would need to pay for the service line then turn the infrastructure over to SUD. Beavers estimated the cost of the line at nearly $1 million, based on a mile and a half of line at $120 per foot. Each customer would also have to pay for a meter, cost $4,100.

“There’s not enough density to make it worth our while to pay for the line,” Beavers said. “Putting in the Jump Off waterline almost bankrupt SUD.” There are no USDA or EPA grants available to fund the project, according to Beavers, although SUD would qualify for a loan.

Reviewing SUD’s American Rescue Plan Act grant funded projects, Beavers said he expected several to come in under budget. He received permission to reallocate unused funds from the Wastewater Rehabilitation project to clean any lines attached to manholes. He hopes to reallocate unused funds from the Asset Management project and Service Line Inventory project, as well.