State Comptroller Lauds SUD’s Financial Planning Practices
by Leslie Lytle, Messenger Staff Writer
At the Oct. 21 meeting of the Sewanee Utility District board of commissioners, Board President Charlie Smith read a letter accompanying a certificate of recognition from State Comptroller of the Treasury Jason Mumpower praising SUD for its financial planning practices. In regular business the board selected an auditor for 2026 and discussed the 2026 budget and upcoming commissioner election.
The letter read, in part, “We are pleased to present this certificate recognizing the hard work and commitment to operate [the utility] with a sound financial plan … Thank you for your contribution to making government work better. We recognize the importance of managing public finances in a responsible manner and encourage [the utility] to keep up the good work.”
Turning to the annual task of hiring an auditor, SUD retained the Tullahoma firm, Strategic Vision, formerly the MG Group. The firm reorganized under a new name and leadership when the principal and owner Don Mills died. The fee for the audit increased by more than a third, from $5,500 to $9,000. “They do a good job and they’re thorough,” said SUD manager Ben Beavers. “Because of the time constraints I recommend we hire them for this year, but that next year we start earlier trying to find someone.” SUD prefers not to retain the same auditing firm for more than five years and had exceeded that benchmark with the MG Group. Last year SUD contacted multiple local auditors but received no bids in response to its request for services. Smith pointed out Big Creek Utility used a Nashville firm that charged $10,000. “Perhaps that’s the going rate,” Smith said.
High on the list of questions about the 2026 budget is the $400,000-$500,000 cost of repainting the farm water tank. “We could put it off another year, but it’s not a good idea,” Beavers said. “We could borrow the money, but the board has been adverse to that in the past.” Paying cash “would use up half of our cash reserves,” Smith observed. “We would still maintain our required reserves,” Beavers said. “It depends on your tolerance for letting the reserves drop.” At the Nov. 18 meeting, Beavers will provide the board with firm figures on the cost, borrowing costs, and cash flow demands. Smith asked what cash demands SUD faced in the next few years. Beavers listed a new service truck, estimated cost $50,000, and painting the St. Andrew’s-Sewanee water tank, estimated cost $200,000. Beavers explained the significantly higher cost of repainting the farm tank was due to lead paint on the exterior which required sandblasting to remove.
Two commissioner seats are open for election in January. Donnie McBee will seek re-election. Johnny Hughes was not present and has not declared his intentions. Commissioners serve a four-year term and receive a $50 stipend for each meeting. Both newly elected and re-elected commissioners must participate in Tennessee Association of Utility Districts commissioner training. All SUD customers are eligible to serve on the board. The board must compile a slate of at least three candidates. Those interested in serving on the board should contact a SUD commissioner or the SUD office before the November meeting.