The Algood City Council approved a 13 percent increase on water and sewer rates beginning July 1.
Algood City Manager Keith Morrison said since Cookeville sells services to Algood, a Cookeville increase means Algood has to do the same.
“They are taking our rate and figuring up how many gallons we’re using a year and charging us a rate to recoup their expenses, which is the same thing we would do,” Morrison said. “You know, we’re looking at what expenses we have, depreciation, cost to operate the system, new projects coming in, all of those things, plus we wholesale to West Overton.”
Citizen Dan Taylor said the rates are going up and up and asked if the city has any plans to cut the reliance on Cookeville for water. Morrison said purchasing water from Cookeville is the only option for Algood.
“There is no option for us,” Morrison said. “We have nowhere to get water unless you want to run a pipe all the way to Center Hill and create a treatment plant, which would be a very, very inefficient system.”
Morrison said the 13 percent increase comes after 15.1 percent increase that was passed this year by Cookeville.
“We did not increase rates until after January 1,” Morrison said. “From July through December, we eat that increase to try to save as much for our customers as we could. In January, we passed the 15.1 percent with no additional.”
Morrison said the new minimum water bill will be $42.35. Morrison said that in 2026-2027 the minimum bill will increase to $47.64, in 2027-2028 it will be $50.02, and then in 2028-2029 it will be $52.52.
Morrison said in 2026-2027, Cookeville plans to increase rates by 11.1 percent, and Algood will increase by 12.5 percent. Cookeville will increase rates by 2.2 percent for 2027-2028 and 2028-2029, while Algood will increase rates by five percent.
In other business, the city council approved the 2025-206 fiscal year budget on second reading. Algood’s tax rate will stay the same at .3623 per $100.
Morrison said Algood always tries to finish their budget early to meet requirements for a comptroller certificate. Morrison said Algood has received the certificate all five years that the certificate has been available. Morrison said out of 345 cities in Tennessee, there are only about 85 to 90 cities that received the certificate.
The council approved to preorder two Ford F150s, not to exceed the price of $117,000, and three Ford Explorers, not to exceed the amount of $126,000.
The council approved to preorder a water sewer service truck not to exceed the amount of $130,000.
The council approved to extend a contract through 2029 with AXON for dash cams and body cameras for the Algood Police Department. Morrison said bundling both together would cost the city an estimated $42,000 per year.
