by Leslie Lytle, Messenger Staff Writer

“We have the option to not allow data centers. If it goes to court, I think we have a case just from the standpoint of we don’t have the infrastructure to support a data center,” insisted Alderman Grant Fletcher at the Aug. 31 Monteagle Council meeting, arguing for banning data centers outright instead of passing on second reading the ordinance approved in July, limiting the location of data centers. Fletcher prevailed. The Council also grappled with the State Revolving Fund (SRF) refusing to loan the city money for critical sewer needs if Monteagle did not raise water and sewer rates.

The data center ordinance approved on first reading in July only allowed data centers as a special exception on property zoned Industrial, the rationale being Monteagle has no property zoned Industrial. Challenging the ordinance before the second reading vote, Fletcher said, “The way we’re going about this, I disagree with. We have the authority to say we don’t want a data center.” Fletcher pointed out numerous other communities in the state had banned data centers.

“It is illegal to declare something to not be a permitted use,” countered Alderman Nate Wilson. “If you need time to study it, you can do a temporary moratorium, but it has to have a term. That’s how Grundy County is doing it. A lot of the bans happening statewide will not hold up in court. People are doing it to make a statement.”

Only Wilson voted yes for approving on second reading the ordinance amendment allowing data centers as a special exception in Industrial zoning. Fletcher’s subsequent resolution passed unanimously: “We do not allow data centers as a permitted use within our zoning ordinances.” Mayor Greg Maloof will research the resolution’s validity and path forward with the city attorney and Tennessee’s Municipal Technical Advisory Service.

In refusing to loan Monteagle money if they did not raise water and sewer rates, SRF maintained the town would be unable to repay the loan and unable to fund the depreciation for the two infrastructure projects, i.e., set aside money for replacing the infrastructure in the future. Monteagle applied for funding to replace the pump station behind the Waffle House, a critical need for sewer service to continue on the west side of town, and for more Inflow and Infiltration remediation preventing groundwater from seeping into sewer lines, reducing the lines’ capacity and increasing the cost for sewage treatment. Monteagle applied for a $5 million SRF loan for the two projects. SRF responded that approval was conditional upon Monteagle increasing water and sewer rates 23 percent. The 1973-era pump station redo will necessitate a 13 percent rate increase, and the I&I remediation will necessitate a 17 percent rate increase by SRF’s calculations. The Tennessee Department of Environment and Conservation gave Monteagle 120 days to respond to SRF.

Maloof cited SRF’s low interest rate, only 1.8 percent, compared to other lenders as the impetus for pursuing an SRF loan. “Monteagle is playing catchup and the town was growing,” Maloof acknowledged. “We had our first rate increase in recent memory when I became mayor.” Since 2022, rates have increased 52 percent spread out over several years.

“There is a limit to what people can afford,” said Alderman Dean Lay. He strongly opposed a rate increase for water customers who did not benefit from the sewer system. If public sewer is available, customers are billed for sewer even if they do not connect to the system. Aldermen Fletcher and Dan Sargent spoke in favor of spreading the increase over several years. Fletcher also cited the possibility of a rate increase that did not impact all customers, finding other ways to pay for the projects, or only doing one, with the pump station most critical in his opinion.

Wilson suggested charging an impact fee for a new tap, with the fee based on the size of residential units served by the tap, i.e., a lower fee for a single-family home than for a 230-unit motel. He also pointed out Monteagle’s rate structure benefited customers with high use. He proposed considering a “water conservation” rate and adjusting the sewer rate.

“We’re going to have to do something,” Maloof stressed. “We’re looking at different avenues and approaches.”

On the good news front, sisters Pat Fisher and Peggy Helton coordinated a Senior Center project asking restaurants and businesses to make donations to be given as gifts to the first responders who protect Monteagle. The project yielded $5,000 worth of gift cards and gift certificates. The seniors are creating thank you cards to be given to the town’s first responders along with the gift certificates and gift cards in commemoration of the first responders who served and who lost their lives on Sept. 11, 2001.

Updating the town on the Imagine Monteagle sculpture project, Fletcher said the town received a grant from the Lyndhurst Foundation covering 100 percent of the cost of the sculpture. The patio and foundation were privately funded through the Mountain Goat Trail Alliance. The only cost to the town was $1,500 for design drawings.

Looking to Imagine Monteagle’s interest in helping promote tourism, Fletcher proposed hiring someone to manage a social media presence on Facebook and Instagram and to create flyers for events, costing $2,500 annually from the Imagine Monteagle budget. The council approved the request, with Wilson abstaining. He recommended tabling the idea until Monteagle decided whether or not to take over coordinating the Monteagle Mountain Market event. The Chamber of Commerce will not coordinate the event in the future.

Building Inspector Travis Lawyer advised the community he and Codes Enforcement Officer A.J. Wade were removing the vinyl yard and garage sales signs posted throughout the community. “They are illegal,” Lawyer explained.

During the Mayor’s Communications segment of the meeting, Maloof announced the Petro truck stop property sold recently. He anticipates the new owners will meet with the planning commission regarding moving forward.