Nashville Council Rules Out Water Rate Hike

Alternate streams of revenue are being approached for Nashville's water improvement project.

Nashville townhall

Photo: Bill Shaw

The Nashville Town Council discussed the infrastructure improvement program on Thursday night.

Nashville’s water utility has been running at a loss since December of last year.  In response, the town council was considering a 16.4 percent water rate increase or even selling the utilities to an outside company.

On Thursday the council announced that it has ruled both of those options completely.

Nashville Superintendent, Roger Bush says the measures  aren’t necessary because the utility department is no longer running on a deficit

“As of this month, our revenue outweighs our debt,” Bush says. “Part of what was going on last month – our maintenance had been so great that our debt outweighed our revenue. So now we are starting to see a bit of a turn around on that.”

Bush says 90 percent of the utilities financial problems are tied to water loss. The town still needs to repair water line leakages and rusty meters. But Bush says the council is confident about securing funding for the  cost of those projects.

“Currently one our rural development loans is looking to come to a close – in which case it will be paid off,” Bush says. “We will be looking at rolling over that loan into infrastructure improvement program.”

The council is proposing a 5-year plan to tackle the infrastructure issues. How much those improvements would cost is still being researched. Estimates are scheduled to be presented at the council meeting next month.

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