Gleason to Increase Water Rates 33 Percent

Effective July 1, residents of Gleason will face a 33% water rate increase. The increase comes at the recommendation of the Tennessee Comptroller’s office. Following a rate study, the City of Gleason was faced with the inevitable decision to increase the rate.

Over two years the City of Gleason’s Water Department/Utilities showed a decrease in revenue. With two consecutive years of “negative statutory change in net position” a utility system will be referred to the Tennessee Board of Utility Regulation (TBOUR).

According to TBOUR, “Once the Board has received the utility questionnaire and Staff’s recommendations, an order will be issued directing the utility to take specific actions. Usually, a Financial Distress Order will require the entity to contract with a third party and receive a rate study along with an evaluation and modification of policies.

“Once the utility has received the ordered rate study the board will need to adopt all recommendations made by the approved expert. Once the utility has completed two consecutive, timely audits showing a positive change in net position and completed all outstanding orders, the entity will be marked for release under staff and board guidance.”

In the 2023-24 Fiscal Year Budget, the water rate was increased by 3% following multiple years of stagnation on the rate. Subsequently, the TBOUR is given the authority to require a utility system to take appropriate remedial action to correct a deficiency identified during the review process.