CLARKSVILLE, TN (CLARKSVILLENOW) – After months of debate and a one-month postponement, the City Council has approved the first reading of an ordinance from the Clarksville Gas and Water Department, which is set to raise a number of customer rates, service fees and other charges. The majority of price modifications are set to go into effect July 1.

Clarksville Gas and Water General Manager Mark Riggins introduced the ordinance during last month’s informal council meeting, citing that the gas division is facing a $1 million deficit.

Riggins previously told the council that volatile gas prices, inflation and system maintenance hit the gas division’s budget hard. While the deficit fluctuates in decline and regrowth over the course of the fiscal year, CGW is not recovering at the level it should, he said.

Riggins said service rates have not been changed in over 15 years, and if rates don’t change, there is a chance the Tennessee Board of Utilities and Regulations will eventually take away the city’s authority on the matter and raise the rates themselves.

‘Do not disparage the character of a city employee’

When the ordinance was brought up Thursday night, Councilperson Wanda Smith wasted no time to address the council and constituents. She made numerous points as to why this is not the right time to increase rates, including:

  • The catastrophe experienced by many residents during the tornado.
  • Concern for individuals who live on a fixed income and cannot afford the rate increases.
  • CGW recently increased the rates for water and sewage, which affected many residents.

Smith then said, “I understand Mr. Riggins wants to make the city residents pay the same amount as the county residents for gas, because he did not think it was right. I believe Mr. Riggins lives in the county, so I understand his frustrations.”

Before Smith could continue, Mayor Joe Pitts stopped the meeting and addressed what Smith said.

“You do not disparage the character of a city employee or any other member of this council,” Pitts said. “You said that he lives in the county and that’s why he wants to make the gas rates equal … Please do not say that.”

After the meeting, Riggins gave Clarksville Now a response to Smith’s accusation. “I consider myself one of the most unbiased people when it comes to how I run my department, and what I propose to the council as far as rates. In response to the comments that were made, I can say that with confidence because I’m not my own customer. I don’t live within my own (gas and water) district.”

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During a previous meeting, Riggins had said CGW isn’t actually supposed to be charging different rates for customers inside and outside the city limits. Because CGW receives all of its funding from customer utility bills and not from city taxes, it should be treating all of its customers the same. Doing otherwise is out of compliance with state standards for municipal utilities, he said.

Additional concerns

Councilperson Dajuan Little said during the meeting that rate increases are going to have to happen no matter what, but he had concerns on how this ordinance will affect those who live paycheck to paycheck, adding that around 16,000 people had their account deactivated due to non-payment during this past year.

“That’s 16,000 people who are having it rough, who are struggling … my biggest issue with that is I used to be there, I lived that life, and I know what it’s like,” Little said.

Little asked his fellow council members to think about the 16,000 people when deciding whether to raise the rates and fees.

The ordinance passed by an 8-5 vote with Pitts, Brian Zacharias, Deanna McLaughlin, Ambar Marquis, Travis Holleman, Stacey Streetman, Joe Shakeenab and Keri Lovato voting yes.

Smith, Little, Wanda Allen, Karen Reynolds and Wallace Redd all voted no.

What rate increases mean

CGW is asking to increase service fees from $50 to $100 during business hours, then new service fees after hours from $100 to $200. Riggins previously justified the increase by saying these fees would cover the physical labor provided by his department, as well as the equipment used on a jobsite.

“I took an average service department employee that we have, about 15 years of service. They make $27 per hour, and if you add the 42% in benefits … you’re looking at $38.50 per hour. You multiply that by two and you’re at $77. Then, a truck … is $25 per hour. We’re already above $100 there, but we do take into account not all of these (jobs) take two hours.”

The new service fee is proposed to go from $100 to $200 for a couple of reasons. First, the employee is coming directly from their residence, and they receive standby pay and overtime pay, which is time and a half, according to Riggins. The second is that the price increase will act as a deterrent.

Riggins told the council that his department hired the services of Jackson and Thorton to provide a rate study, which showed CGW is recovering only 90% of their expenses, but if they were to implement these price modifications, that percentage would rise to 97%.

In addition to the new service fees being increased, other price modifications in the ordinance can be found here.

Chris Smith contributed to this report.