The Crossville City Council reviewed the 2025-2026 water/sewer budget at last night’s work session. Expenses increased by approximately $400,000, primarily due to $200,000 in depreciation from ARPA projects.

Revenue was budgeted at $11.259 million, slightly up from $11.231 million, but reduced due to anticipated lower water usage after last year’s drought, and a $200,000 drop in interest revenue due to expected federal rate cuts. The budget showed a slim $12,000 surplus, raising concerns about potential deficits due to depreciation from upcoming projects like the Crab Orchard pump station.

The state mandates that there can be no deficit in the water and sewer fund, with penalties for two consecutive years of deficits, including possible state intervention. Therefore, City Financial Director Nathan Clouse proposed a 10% rate increase to generate approximately $500,000 to offset the shortfall. This increase equates to a $2.78-$5 monthly bill increase, depending on the individual.