CLARKSVILLE, TN (CLARKSVILLE NOW) – After an hour and a half of debate Thursday night, the City Council voted to postpone an ordinance to increase a number of customer rates, service fees and other charges within the Gas and Water Department. Members of the council went back and forth on whether now is the time to impose the changes.

CGW General Manager Mark Riggins introduced the ordinance during last week’s council meeting, citing that the gas division is facing a $1 million deficit.

Riggins told the council last week that volatile gas prices, inflation and system maintenance have 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 take away the city’s authority on the matter and raise the rates themselves.

Duty vs. responsibility

Multiple council members voiced concerns Thursday night about the fee increases because of the impact they could have on lower income households.

Councilperson Wanda Allen said she doesn’t believe the state is anywhere close to coming in and raising rates themselves.

“We are not in financial distress at all,” Allen said. “The numbers in our budget show that we are not in financial distress. There are three things that trigger financial distress. The very first one is not having a credit rating. We’ve sat here and heard that we would have a triple-A credit rating if it wasn’t for our debt over in (the Water Department).”

Allen said the increases would put a large number of citizens in financial distress themselves.

After the meeting, Riggins responded by saying, “The actuality of it is this: We are not in financial distress through the eyes of the Tennessee Board of Utilities and Regulations. We are in a $1 million deficit, however. I do agree with the council, and I’m not trying to misrepresent in any way; we will make up some of that difference this year. I’m not certain that we will make it all up and get back to zero.

“I’m also not certain we’ll make it up next year and in ongoing years. As I said in the meeting, that may be OK this year, it may be OK next year, but the big deal and the reason for the rate increase … I mention that because inflation has already affected us negatively. But once we start doing these capital projects and dishing out millions of dollars on projects, I can no longer maintain.”

Riggins said if his department does not move forward with rate increases and they do begin these capital projects, he expects CGW to be in financial distress. He said leading up to the meeting next month, he plans to plug his department’s finances into a financial model to show when the point of failure would come without the fee increases.

Several council members said the council needs to trust the information Riggins brought forward.

CGW outsourced to the services of consultants at Jackson and Thorton, who specialize in rate studies. What Riggins and his department are requesting is actually less than what was suggested by the consultants.

Postponing the vote

A motion to postpone the decision passed 7-5. Council members voting to postpone were Allen, Brian Zacharias, Dajuan Little, Ambar Marquis, Wanda Smith, Karen Reynolds and Keri Lovato.

Voting no were Mayor Joe Pitts and council members Deanna McLaughlin, Wallace Redd, Travis Holleman and Stacey Streetman. Councilperson Joe Shakeenab was absent.

The City Council will revisit the topic in January and, if approved, the majority of price modifications would go into effect July 1.