Smithville Releases Results of Water Cost Study

March 19, 2013
by: 
Dwayne Page
Smithville Water Treatment Plant

How much does it cost the City of Smithville to treat and supply water?

$2.67 per 1,000 gallons according to the results of a water cost study by Warren and Associates Engineering, PLLC of Lebanon.

(CLICK PDF LINK BELOW TO READ THE ENTIRE REPORT)

Smithville Cost Study March 2013.pdf (327.54 KB)

According to the report, Based on the data reviewed provided by the City of Smithville, and based upon documented revenues, calculated expenses, and calculated capital expenditure
allowances, the average cost to treat and supply 1,000 gallons for the City is:

• Average Cost to Treat and Supply 1,000 Gallons: $2.67

The current rates charged by the City of Smithville to their customers are as follows:

• City of Smithville Customers: $5.00/1,000 gallons
• DeKalb Utility District: $2.05/1,000 gallons

The City of Smithville currently sells water to the DeKalb Utility District for $2.05 per thousand gallons and under terms of the contract, the rate increases by five cents per thousand gallons in January of each year. The two parties entered into the contract in 2004 and it expires in 2014. Even if the DUD builds its own water plant, it will apparently still need a new water agreement with the city to serve certain areas.

As a comparison, rates charged by other selected utilities in the Middle Tennessee area were
checked, according to the study. Following is a summary of the amount per 1,000 gallons charged.

Comparative Rates from Other Utilities as follows:
District/Utility Providing
District/Utility Purchasing
Price/1,000 Gallons

Town of Carthage Cordell Hull UD/25 UD $4.01
Smith Utility District Town of Alexandria $2.88
Smith Utility District Southside UD $3.75
Hartsville/Trousdale Water Cordell Hull UD $2.75
Hartsville/Trousdale Water City of Lafayette $2.75
Hartsville/Trousdale Water Castalian Springs UD $2.75
Hartsville/Trousdale Water Southside UD $2.75
Lafayette UD Red Boiling Springs $4.32
Cookeville UD Jackson County UD $3.71
Gainesboro UD Jackson County UD $2.82
Livingston UD Jackson County UD $2.99
Red Boiling Springs UD Jackson County UD $4.22

The city paid $7,500 to have the study done.

The City of Smithville and DeKalb Utility District were expected to share in a cost of service study as the two sides looked toward possibly making a deal on a new water contract. But the DUD opposed the city's selection of Warren and Associates.

In a recent letter to city officials, signed by Board Chairman Roger Turney and manager Jon Foutch, DUD officials wrote that the city and DUD were to have agreed on the selection of an unbiased entity to perform the study. DUD officials claim that Warren and Associates is not unbiased in that it has been hired by the city and officials of the company will be presenting evidence against the DUD on behalf of the City of Smithville at the April 4 Utility Management Review Board (DUD rate review) proceeding in Smithville.

Smithville Cost Study March 2013.pdf (327.54 KB)

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