The City of Smithville will have to raise water rates by 45% over the next five years once it loses its largest customer, the DeKalb Utility District. The DUD has built its own treatment plant and plans to start producing water soon.
In addition, Smithville residents will be hit with a sewer rate hike of 40% over the next four years in order to fund depreciation due to renovations underway at the waste water treatment plant.
A 45% hike would increase customers water rates from $5.00 per thousand gallons to $7.69 per thousand over five years. A 40% increase in sewer rates over four years would result in an increase from the current rate of $5.00 per thousand gallons to $7.33 per thousand.
Greg Davenport of the J.R. Wauford Engineering Company and Buddy Petty of Rate Studies Incorporated of Nashville shared with the mayor and aldermen Monday night the results of the latest water and sewer rate study.
“Everybody knows a big water rate increase is coming. You cannot lose your largest water customer by far without a massive increase. I think you are selling more water to them (DUD) than you use inside the city. We also looked at your sewer system,” said Davenport.

Aldermen Josh Miller and Gayla Hendrix asked why the loss of revenue from DUD would not be offset by less expense to the city. “They only thing you’re getting an advantage on here is less power and less chemicals. You still have the plant infrastructure that you are paying depreciation on. We did not assume anybody being laid off (in this water rate study). It’s basically just as you are now except you’re just losing a big customer,” said Petty.
“You have a lot of fixed costs. You can’t take a three million gallon a day water plant and operate it at two million gallons a day and cut the labor staff by 50%. You still need a certain number of people there just to keep it going and run tests everyday whether you produce one gallon or three million gallons a day. All those fixed costs are divided into fewer sales gallons. Your variable costs like chemicals and power will go down but they will not go down in corresponding fashion with your income,” added Davenport.
Petty said his company did a cash flow analysis over five years and concluded a rate hike is inevitable.
“By fiscal year 2021 we’re anticipating total income (water fund) of $933,000 but expenses will be over $1 million so you will be losing cash by that point. We’re showing some possible cash expenses that year so you will have a cash loss of about $200,000 just pure cash. When we look at it on net position the biggest thing is you have depreciation. You have a negative change in net position of $406,000 (water fund). That is what is driving it (loss). It looks like over the next five years you are going to need an overall 45% increase in the water (rates). In sewer you’ve got a negative change in net position of $341,000 and a 40% increase (rates) will be needed over the next four years,” said Petty.
Petty recommended that the city raise water rates by 10% each year over the next four years and 5% in the fifth year. Petty further suggested increasing sewer rates by 10% each year over the next four years. “What that does for you is to bring your cash back up where your revenue will be well above your expenses. It’s going to put you back in really good shape financially,” said Petty.
The proposed water and sewer rate increases under this plan would not put the city back in the black for four to five years so Petty and Davenport suggested that city officials review this option with the state comptroller before any action is taken since the state requires that utilities not operate in the red for more than two consecutive years.
“A water system fund is not just managed off of cash. It’s not like your home budget where as long as your bills are less than your income you’re still okay. With a water system you have what they refer to as a net position. In Tennessee there’s a law that says you can’t have more than two years of net position negative in the red. What that means is your cash could be floating along fine. Your books could show a negative number because depreciation is pulling you down. Depreciation is a non cash expense. Really if you have any depreciation your cash balance should be going up all the time and you have to raise those rates not just to finance your bills but also to fund your depreciation and everything else and that’s a state law. If you have two years or more of net position in the red then the state water and waste water financing board is going to come down and say you raise your rates or we’re going to raise them for you and they are not going to care about your citizens like you do because they are not here,” said Davenport.
“The state law in Tennessee says you must have a depreciation charge on your water and sewer fund. The purpose of that law is that if you buy something new they want you to depreciate that over whatever useful years that is. For example, a vehicle may be seven years. A wastewater plant may be 40 years. It’s a non cash expense. In other words you are not actually spending that money. It just shows up on the books. The purpose of the law is that the state wants you to save up that money over time so that when you have your next plant (the money to build it) is sitting there in bank,” Davenport continued.
Janice Plemmons-Jackson, the city’s financial consultant recommended that the city consider making the water increase 20% the first year, 15% the second year, and then 5% the following two years.
“You look at the numbers and you’re in the red about four years before you’re starting to get better. I think for the water rates we need to put in 20% for the first year, 15% the second year, and then 5% and 5% (following two years). That gets to 45% but it gets money in here quicker to get the problem fixed (quicker) rather than going four years before you get out of the red. If the comptroller doesn’t like that option (smaller rate increases over five years) then we’re in trouble,” said Jackson.
No action is expected until the new budget is up for passage this summer.

The Smithville-DeKalb County Chamber of Commerce has been awarded a $100,000 Community Development Grant (CDBG) for downtown Smithville. The CDBG funding will be used for commercial façade improvements for downtown Smithville including new awnings and signs, painting, windows and doors, brick repair and other upgrades.
Tennessee Gov. Bill Haslam and Economic and Community Development Commissioner Randy Boyd recently approved nearly $750,000 in Commercial Façade Improvement Grants to assist Tennessee communities with downtown improvements.
Commercial Façade Improvement Grants are derived from Tennessee’s federal Community Development Block Grant (CDBG) funds and are used to improve commercial buildings in downtown districts that have active revitalization programs in place through the Tennessee Main Street and Tennessee Downtowns programs.
“The downtown area is the heartbeat of a city and these communities are taking steps to help their downtowns thrive,” Haslam said. “I congratulate the nine communities awarded the Commercial Façade Improvement Grants this round. They are moving their downtowns in the right direction and helping us reach our goal of making Tennessee the No. 1 location in the Southeast for high quality jobs.”
“With the assistance of the CDBG Commercial Façade Improvement program, these communities will be able to improve their downtown districts and attract new business,” Boyd said. “With renovations like these, the nine communities that were awarded these grants will be able to succeed in our state which will promote future growth in each community.”
The 2016 Commercial Façade grantees are: Athens – $100,000 Bolivar – $79,250 Dyersburg – $100,000 Lebanon – $100,000 Mountain City – $50,000 Rogersville – $100,000 Savannah – $100,000 Smithville – $100,000 Tiptonville – $20,000.
Seven of the nine grantees are accredited Tennessee Main Street communities, and two are Tennessee Downtowns communities. Each is required to provide a 25 percent match for the funds and administer the façade improvement programs.
Each application was supported by the community’s senator and representatives in the Tennessee General Assembly.
Chamber Director Suzanne Williams will start the application process in a couple of weeks. The 75/25 grant match will allow property owners to apply for up to $5,000 per building in exterior improvements and receive up to $3,750 back. “So much has already been accomplished in downtown Smithville with the Tennessee Downtowns Program Grant for $15,000 and our recent $25,000 CDBG Block Grant. We are very grateful for being awarded the $100,000 CDBG grant and the opportunity to continue the downtown renovations,” says Williams. For more information, call the Chamber at 615-597-4163.
The CDBG program is administered in Tennessee by the Department of Economic and Community Development.

The DeKalb County Sheriff’s Department has charged a woman with two counts of domestic assault for allegedly assaulting her daughter and son-in-law.
(CLICK LINK BELOW TO VIEW MUG SHOTS OF PERSONS RECENTLY BOOKED AT THE DEKALB COUNTY JAIL)Seagate Crystal Reports – REPOR_6.pdf (3.12 MB)
43 year old Cathy Ann Cuttrell of Parkway Drive, Smithville is under a $3,000 bond and her court date is February 9. Sheriff Patrick Ray said that on Tuesday, January 17 a deputy responded to a physical domestic at a residence on Parkway Drive. Upon arrival the officer spoke with a woman who stated her mother, Cuttrell, had punched her in the chest. The victim had visible marks on her chest and neck area. A further investigation revealed that Cuttrell had also assaulted the victim’s husband by hitting him on the ear. He had visible marks on his ear.
49 year old William Morris of Old Snow Hill Road, Dowelltown was issued a citation on Monday, January 16 after he was found with Alprazolam pills during a traffic stop on Highway 70 west. According to Sheriff Ray, Morris was a passenger of a 1998 Oldsmobile 88 and after a consent to search, Morris was found to have three Alprazolam pills, a schedule IV drug, in a silver container. Morris, who is on probation, will make a court appearance on February 9.
21 year old Michael Lee Newell of Maynard Road, Smithville is charged with filing a false report. His bond is $5,000 and he will be in court on February 9. Sheriff Ray said that on June 28 Newell filed a report with the Sheriff’s Office claiming credit/debit card fraud. However video surveillance at Walmart revealed that Newell had used the credit/debit card himself and that there had been no fraud or false transactions. The case was investigated by a detective.
33 year old Nathan Jo Trapp of Magness Road, Smithville is charged with filing a false report. His bond is $1,500 and he will make a court appearance on February 9. Sheriff Ray said that on Wednesday, January 18 a detective received an inmate request form filled out by Trapp, a prisoner, stating he (Trapp) had been raped while in custody. An investigation revealed that Trapp had not signed the form and later recanted admitting that he had not been raped.
26 year old Ashley Tierra Horne of Antioch is charged with driving on a revoked license. Her bond is $1,500 and her court date is February 9. Sheriff Ray said that on Saturday, January 21 a deputy was on routine patrol when he spotted Horne’s vehicle on Highway 70 west. After Central dispatch confirmed that the automobile was registered to Horne, the officer conducted a traffic stop. Horne was driving the vehicle. A computer check confirmed that Horne’s license were revoked in Davidson County for failing to pay fines and court costs. She was cited on January 1 for the same offense.

Americans from across the nation including a few in DeKalb County made the trip to Washington D.C. for Friday’s inauguration of Donald Trump as President.
Among them were Dustin and Courtney Estes, who left last Wednesday and drove all the way to the nation’s capitol for this historic event. “We left Wednesday night and drove about half way and then finished the rest of the way the next morning,” Dustin told WJLE.
The Estes’ got tickets to the Inauguration through Congressman Diane Black’s office and though they were not close enough to get in the seated sections, they still had a great view. “We were in the closest standing section right behind where the seats were on the ground and they had big screens all around. I would like to say thanks to Congressman Black because her office got Courtney and I our tickets,” said Dustin.
Estes said he was impressed with President Trump’s speech and liked what he had to say about putting America First. “We thought it was an excellent speech. Those that didn’t vote for him probably didn’t think it was so great. But for us we thought he made the future look bright. He kept saying over and over about putting America first and that he wouldn’t make any decision or any deal unless it had America’s best interest. It was a great speech. And the fact that we can go from one President to the next peacefully is remarkable. Not many countries have that. It was great to see all the pomp and circumstance, the ceremony, and everything that goes into it. All the past Presidents that are still alive were also there along with other faces you see on TV that you think you’ll never see in person so it was really remarkable,” said Dustin.
As one might expect security was tight for the event. “The ceremony was great but equally as great was the security. It was top notch. It was like something you’d see in a movie. You could see snipers on roof tops. They had huge fences it seemed for miles and all the agencies you could think of like Border Patrol, FBI, Secret Service, police officers, motorcycles, horses, and helicopters were all there,” Dustin continued.
While the inauguration was the highlight of their trip, the Estes’ also did some other sightseeing while in Washington. “We were able to make it to the Washington Monument, Arlington Cemetery, the National Cathedral, and the Holocaust Museum. We had a great time. It was probably a once in a lifetime experience for us, “said Dustin.

Tennessee Gov. Bill Haslam has declared Jan. 22–28 as School Board Appreciation Week, which DeKalb County Director of Schools Patrick Cripps said is to help build awareness and understanding of the vital functions a locally elected board of education performs in a community.
The DeKalb County School System will join the Tennessee School Boards Association (TSBA) and all public school districts across the state to celebrate the week and honor local board members for their commitment to children.
“Our school system is the backbone of our community, and these men and women devote countless hours to making sure our schools are helping every child,” said Director Cripps. “There is no greater honor that can be bestowed upon a citizen than membership on a local board of education. They spend countless hours studying the issues and regulations and make tough decisions when called upon to ensure the type of accountability people expect,” he said
Director Cripps said the key work of school boards is to raise student achievement by:
— “Creating a vision for what the community wants the school district to be and for making student achievement the top priority.”
— “Establishing standards for what students will be expected to learn and be able to do.”
— “Ensuring progress is measured to be sure the district’s goals are achieved and students are learning at expected levels.”
— “Being accountable for their decisions and actions by continually tracking and reporting results.”
— “Creating a safe, orderly climate where students can learn and teachers can teach.”
— “Forming partnerships with others in the community to solve common problems.”
— “Focusing attention on the need for continuous improvement by questioning, refining and revising issues related to student achievement.”
Moreover, Director Cripps said, “Our local school board shapes the future of education in DeKalb County by influencing the high-quality of education that our children and youth receive. The DeKalb County school board shows its commitment to educational excellence and equity-and for that we are very grateful for their attitude of service.”
Members of the DeKalb County Board of Education are Chairman W.J. (Dub) Evins, III; Vice Chairman Doug Stephens; Jim Beshearse, Jerry Wayne Johnson, Kate Miller, Danny Parkerson, and Shaun Tubbs.

DeKalb County is one of 59 Tennessee counties in which there is a quarantine for Emerald Ash Borers.
The list of quarantined areas in the state is growing due to the Emerald Ash Borer, (EAB), an invasive pest targeting ash trees. The prohibition on the movement of ash trees and ash tree products expanded in September to DeKalb as well as Bedford, Cannon, and Coffee counties, as well as Lincoln, Van Buren, Grundy, Moore, Sequatchie, and Warren.
The Emerald Ash Borer is a destructive forest pest that was introduced from Asia into the United States in the 1990s. It was first detected in Tennessee in July 2010. EAB beetles can kill an ash tree within three years of the initial infestation.
Humans tend to contribute to the spread of this bug, unknowingly transporting it through infested nursery stock, firewood, unprocessed saw logs, and other ash products.
Citizens should report any symptomatic ash trees to TDA and follow these simple rules:
•Don’t transport any firewood, even within the state.
•Use firewood from local sources near where it will be burned.
•If you purchase firewood, make sure that it is labeled and certified to be pest free.
•Watch for signs of infestation in your ash trees.
Visit www.tn.gov/agriculture/topic/ag-businesses-eab for a symptoms checklist and a map of quarantined counties.
TDA’s Division of Forestry estimates that there are 261 million ash trees on public and private land in Tennessee, potentially valued as high as $9 billion.
For more information about Emerald Ash Borer and other destructive forest pests, as well as tips for infestation prevention, visit www.protecttnforests.org.

Governor Bill Haslam on Wednesday proposed Tennessee’s first gas tax hike in 27 years to fund the state’s road building and maintenance program but State Representative Mark Pody is not sold on it.
Under the Governor’s plan, the state gas tax would increase by seven cents from 21.4 cents per gallon to 28.4 cents. The tax on diesel would increase by 12 cents per gallon. The IMPROVE Act would increase car registration fees by $5 for the average passenger vehicle. It places an annual road user fee on electric vehicles and increases charges on vehicles using alternative fuels. The proposal also includes a 3 percent charge on rental cars and changes the state’s open container law to allow the Tennessee Department of Transportation flexibility to use $18 million in existing federal dollars on roads. Fuel taxes would be indexed – but also capped – to the Consumer Price Index in order to keep up with the rate of inflation.
The Governor said the state’s $6 billion backlog in transportation projects should spur legislators into action. Haslam’s plan would generate about $278 million per year in new transportation funding, while at the same time cutting about $270 million in taxes for shoppers buying groceries, manufacturing companies investing in the state and people earning income from stocks and bonds.
Speaking with WJLE during a visit to Smithville Friday, Pody said while he agrees the transportation department needs more funding, he believes there are better alternatives.
“I am very excited that they are tackling the transportation funding issue. We have to find a way to put more money into TDOT. If I had to pick a number it would have been closer to $400 million per year in dedicated funding (we need). The proposal he (Governor) has isn’t going to be quite that much. But if that is what he feels comfortable with then I am good with that. The question is “how are we going to fund it”? He is proposing that we put a seven cent gas increase per gallon and twelve cents per gallon on diesel. I would rather readjust the taxes. For example, if we just took the people that are using the roads in all sources, when you get your oil changed or buy a tire, or buying a used car, take the sales tax we’re using on that and put that into the department of transportation. If we do it with just the gas tax it doesn’t affect anybody who is using electric or using natural gas. He says we’ll put another fee on those people. I’m not really big on just doing fees because we’re only going to kick this problem down the road. Let’s take a dedicated tax revenue source we already have so it comes out of the general fund, and we have an almost 2 billion dollar surplus there, and dedicate that toward TDOT. That can be easily done without a tax increase. I’m in full agreement with the Governor that we need to put more money in. It’s just where that source is going to come from,” said Representative Pody.
The IMPROVE Act cuts the sales tax on groceries another .50 percent ($55 million) to 4.5 percent, making a total cut to the sales tax on food of 1 percent, or $101 million, during Haslam’s administration; makes Tennessee’s franchise and excise tax on manufacturing businesses more competitive by allowing companies to go to a “single weighted sales factor” ($113 million); and cuts the Hall income tax 1.5 percent this year with a commitment to cut it another 1.5 percent next year (3 percent, $102 million) – a tax that is statutorily required to be eliminated by 2022 but without a specific schedule to do so. IMPROVE cuts taxes by an estimated $270 million annually, bringing the total number of cuts made and proposed since 2011 to $540 million annually, roughly nine times more than any other administration.
Pody said while he likes the idea of further tax cuts, the state must make sure it’s obligations are met first. “Returns lately in the stock market have been good but last year and the year before they really haven’t been as well. Therefore the Tennessee Consolidated Retirement System state retirement program didn’t get the rate of return anticipated. We have to make sure we fully fund that as well. We have to make sure the Basic Education Program (BEP) is fully funded.”
“We already voted to get rid of the Hall’s Income Tax over the next few years and he wants to cut 1.5% of that right now. I would rather see us make our commitments fulfilled before we do another decrease on something else. We’ve already made a commitment to cut 5% and he is only cutting it by 1.5%. Before we propose another tax decrease, let’s fulfill the agreements and promises we’ve made to Tennessee by cutting what we have already promised. Once that is done, if there is more money left over next year then go ahead and take the next cuts we can do. But don’t keep cutting taxes until we have fulfilled promises we’ve made to Tennesseans first. I think that is very important because I don’t want to be caught down the road if we have a downturn. Let’s do all our promises first before we look at additional tax cuts. I’m all for tax cuts but it’s got to be step by step. I think we can do better than what he is proposing,” Representative Pody said.
The IMPROVE Act would bring in $278 million in new dollars to the state for projects and all funds would go toward transportation, including the 2 percent typically reverted to the General Fund, to provide funding for 962 projects across all 95 counties plus an additional $39 million to cities and $78 million to counties. The legislation would also allow municipalities, only if approved by local voters through referendum, to impose a surcharge on their sales tax rate that would be solely dedicated to public transit projects.
The governor added that his FY 2017-2018 budget proposal would use surplus one-time funds to finish repaying the Highway Fund by transferring $120 million from the General Fund.
Additional pieces of the governor’s NextTennessee plan will be announced in the coming weeks. Haslam is scheduled to deliver his annual State of the State address on January 30.