After gathering more than 1,000 signatures from DeKalb Utility District customers, opponents of a proposed DUD water treatment plant now have the ammunition they need to request that the state comptroller review DUD’s records.
The Citizens Against the DUD Plant movement hopes the state Utility Management Review Board will find a reason to quash the project.
Darden Copeland of Calvert Street Group, a public relations firm hired by the City of Smithville to help fight the new plant, told attendees at a meeting held Monday afternoon at the county complex that a petition signed by more than 1,000 DUD customers opposing the project will be submitted to the comptrollers office this week.
Only 520 signatures were needed to force a review of the DUD plan.
Copeland said that the group hopes that a review will conclude that the plant is not needed and block the sale of bonds to help fund the project.
“There's a rule in the Tennessee Code, Darden shared at the meeting. “It's known as the Utility District Law of 1937. It says the taxpayers can petition the Utility Management Review Board for a review of the DUD's plan to finance their water treatment plant,” Copeland said. “Essentially what this says is, if 10 percent of DUD customers sign a petition, we can bypass the DUD and go straight to the Tennessee State Comptroller.
He said the plan hinges on the review board finding waste, duplicity, or unnecessary rate increases sufficient to stop the building of the plant.
“The mission of the Tennessee Comptroller and the Utility Management Review Board is to look for duplicity, for taxpayer waste to protect ratepayers, and rate increases that are out of line with what their plans and their debt management policy calls for. Now that we have enough petition signatures collected, we can turn that in to the comptroller to force a review.
“That review will look at rates, rate increases, plan of services, service area, and a lot of the problems that have been brought up. A lot of those problems hopefully will be addressed and looked at by the Tennessee Comptroller. They've got a plan for a new water treatment plant but they don't necessarily increase the services rendered and rates are going to go up,” Copeland said.
Copeland said that the City of Smithville has also retained the services of Nashville attorney and former Mayor Bill Purcell to help with the process of getting the petition through the right channels.
“Their customer base is right around 5,200, so 10 percent of that would be 520 signatures that we would need. As of (Monday) we have over 1,000 signatures that we plan to turn in to the Tennessee Comptroller's office this week. We have also retained additional counsel, former Nashville Mayor Bill Purcell. He has a law practice in Nashville and understands utility work. He can help us get answers and walk this petition through the process and manage our best interest. He has been retained by the City of Smithville,” Copeland said.
Copeland went on to say that "The DUD has $4.5 million in loans outstanding already. They've got $5 million in loans from USDA Rural Development and right now they have put out to bond another $4.25-$4.5 million in additional loans to fund their water treatment plant and to refinance some of their existing debt. That's a total of about $14-$14.5 million in loans to refinance some old debt, but also to build this new water treatment plant. The debt service alone is going to be astronomical for those existing 5,200 customers," said Copeland.
“They currently have some of the highest rates in the state already, Copeland continued. “If you add another $14 million in loans to pay back, that's going to be on the backs of DUD customers and those rates are going to have to go up. What the number is remains to be seen. But that's going to be a tough pill for folks to swallow who live out in the county, who pay high water bills as it is.” Copeland said.
Copeland told the Review after the meeting that the petition is only a step toward foiling DUD’s plans for a new treatment plant, and stressed that the battle is far from over.
“We are humbled that we have had this outpouring of support in the form of 1,000 signatures, but that only bumps it up to the next level,” Copeland emphasized. “We hope that the comptroller and the review board will see the frustration and the angst out here among the DUD customers. This petition puts the issue on the right desks in Nashville, and hopefully they will agree with the DUD customers that this project is not something that the DUD should be undertaking right now.