The Crossville City Council passed a 10% increase in water and sewer rates to address financial concerns in the water and sewer department.

The decision is driven by the need to comply with the Tennessee Comptroller’s office, which mandates a balanced budget to avoid deficits and potential state intervention.

The 2025-2026 water/sewer budget shows a slight revenue increase to $11.259 million but faces challenges from $400,000 in increased expenses, including $200,000 in depreciation from ARPA projects and a $200,000 drop in interest revenue due to expected federal rate cuts.

The budget has a slim $12,000 surplus, but upcoming projects like the Crab Orchard pump station could lead to deficits. The proposed rate increase would generate about $500,000, adding $2.78-$5 to monthly bills, ensuring solvency and compliance with state regulations.