The Crossville City Council voted to rescind a 25 percent wholesale water rate hike during its Tuesday meeting after officials realized the increase was unintentionally triggered by a separate decision to raise rates for city residents.
Crossville Mayor RJ Crawford said the initial intent of the rate adjustment was to address state guidelines regarding the city’s fund balance by increasing rates for in-city customers only.
“I wish to pass to consider just sticking to the 25% for inside city.” Crawford said, “And not apply it to the outside wholesale payers, which would then bring them back down to $4.71.”
Crawford said he did not realize the move would automatically activate a contractual clause that applied the same 25 percent increase to wholesale customers, such as the Cumberland Plateau Water Authority.
Crossville City Attorney Randy York said the council could modify the existing agreement through mutual consent with the wholesale entities. York said the current contract has been in place for 20 years and is scheduled for renewal in December 2027.
“The history is that every time that there has been a rate increase of the city, there’s been a corresponding rate increase with those other localities,” York said. “But I think that the council can do that without any problem.”
Crawford said the wholesale rate will return to $4.71 per 1,000 gallons while the 25 percent increase for residents living inside the city remains in effect.
The council plans to prepare a formal resolution for its next work session to officially record the rate change and ensure the water department can process billings correctly.
