by Leslie Lytle, Messenger Staff Writer

At the March 16 meeting, the Sewanee Utility District Board of Commissioners grappled with financial concerns about low revenue and the higher-than-expected cost of the Tennessee Department of Transportation (TDOT) road project. The board also discussed the wording and stipulations of a proposed tap repossession policy.

The February financial report showed revenue almost $50,000 below budget (20 percent) and 23 percent below February of 2020. “Last year started well. We didn’t take a hit until April,” said SUD manager Ben Beavers. “We haven’t recovered on the revenue side.”

SUD Board President Charlie Smith pointed to the absence of students on campus for most of December 2020 and January 2021. The resulting revenue loss amounted to “almost a full quarter,” Smith said. “What about a mid-year rate increase?” he asked.

“It’s a little early,” Beavers said. “I’d like to get through the first quarter. I don’t know what the University schedule is. Everyone is playing a wait and see game…I’m clenching my fist on money until our revenue improves. I’m still doing maintenance that we have to do, but there’s a lot I’m holding off on.”

Updating the board on the TDOT road project, Beavers said the contract went to Dement Construction in Jackson, Tenn., for the portion of the construction impacting SUD. SUD’s cost for relocating water lines will be $120,500, almost double the projected amount, and $210,000 for sewer line relocation, when the projected cost was $130,000.

TDOT’s decision to narrow the highway evolved in conjunction with the University pursuing its Sewanee Village Plan for the downtown area. Beavers and Smith met last summer with Frank Gladu, then head of the Sewanee Village initiative, and University Vice President for Finance Doug Williams to discuss the cost to SUD. Beaver said the University had pledged “a substantial contribution” to help SUD pay for the project, proposing an 80 percent/20 percent split. Beavers recently communicated to Gladu the need for a firm agreement. Beavers suggested lack of University assistance could drive a rate increase. “We will recover our costs from somewhere,” Beavers said.

Taking up the need for a policy on taps no longer in use or never put into service, the board reviewed several policy options. “Even if the owner of the tap doesn’t use water, it still costs us to take care of the meter,” Beavers said explaining the need for a policy. The board asked Beavers to draft a policy similar to that of Big Creek water utility.

The suggested policy would stipulate a tap inactive for six months could be reinstated for a $200 fee, plus payment of the minimum use fee and late fees for six months. A tap inactive for 12 months would be repossessed. To reinstate service, the property owner would need to reapply and to pay the SUD tap fee. These stipulations would not apply when customers pay the monthly minimum use fee.

Beavers said when a customer did not pay their bill for two months, the tap was turned off. The third month, the tap was locked. SUD, however, makes provisions for payment for customers suffering hardship. Also, in the case of a house burning down, SUD will allow suspension of service.

The tap repossession policy would also apply to dry taps, taps which have never been put into service. In this case the developer who purchased the tap pays a monthly dry tap fee. When the lot is sold, the dry tap fee becomes the responsibility of the customer.

Beavers will present the policy to the board for review at the April meeting.