Monteagle: CD Purchase Approved; Rate Increase Tabled
by Leslie Lytle, Messenger Staff Writer
At the Oct. 18 Monteagle Council Special Called meeting, the council agreed to move forward with an 18-motnh $677,000 certificate of deposit investment. The council tabled the water tap fee rate increase in order to collect more information, given the difference between the proposed rates to the rates of neighboring municipalities.
At the September meeting, two council members questioned moving the $677,000 from a money market to a 36-month CD, since the town might need the funds before the term ended for water tank rehabilitation. At the council’s request, Mayor Marilyn Campbell Rodman investigated the interest on an 18-month CD. The approved CD investment will yield 2.25 percent, an increase of more than a percentage point from the current money market investment.
Taking up the proposal to increase water and sewer service rates, Utilities Manager John Condra said some of the fees were too high, particularly the fee for a 2-inch commercial tap. Alderman Nate Wilson observed Monteagle’s proposed fee was 20-30 percent higher than Tracy City and Big Creek, but well below Sewanee.
“Is the concern we would price ourselves out of market?” Wilson asked.
“There’s too much variation,” Alderwoman Dorraine Parmley said.
The council will revisit the proposed rate increases after collecting more information.