August 12, 2026 in Local, Top Stories

CROSSVILLE CITY COUNCIL REVERSES WHOLESALE WATER RATE INCREASE, ENACTS DATA CENTER MORATORIUM

The Crossville City Council on Tuesday night reversed a recent automatic 25% hike in wholesale water rates for outside utilities while keeping the increase for in-city customers, approved a temporary moratorium on new data centers, and heard extended public comment on surveillance cameras and water concerns.

Mayor R.J. Crawford called the regular meeting to order at 6 p.m. Aug. 11 in Council Chambers.

The session opened with prayer by Ralph Reagan of Greater Life Rescue Mission, presentation of colors by the Young Marines, and the Pledge of Allegiance.

Council Member Mike Turner briefly addressed the body about the history of the city’s water supply, noting construction of a five-mile pipeline beginning in 1938 under the Works Progress Administration at a cost of about $70,000.

Public Comment
Council suspended time limits to allow fuller discussion. Several residents spoke.

  • Dylan Romero and Roger Romero urged removal of Flock Safety license-plate reader cameras, citing Fourth Amendment protections against unreasonable searches, Tennessee constitutional provisions against general warrants, and Benjamin Franklin’s warning about trading liberty for temporary safety. Roger Romero, a retired Air Force and law-enforcement veteran, referenced United States v. Jones and noted that dozens of cities have canceled similar systems. He also objected to outlying areas paying extra for city water issues.
  • James Cole expressed worry about data centers’ water consumption and potential future rationing, referencing Puerto Rico’s experience, and asked for public details on existing data-center contracts for the sake of his grandchildren.
  • Jenna Walls, a ratepayer in both the city and Catoosa systems, questioned whether Crossville ratepayers should subsidize costs associated with the Cumberland Plateau Water Authority (CPWA) and its extra layer of bureaucracy. She sought clarification on reported wholesale rate figures.
  • Alan Sizemore argued the Flock cameras are more than simple license-plate readers, citing “Freeform” search capabilities by clothing or description. He said the city has provided little transparency despite public-records requests and asked the council to vote that the contract cannot auto-renew without affirmative council action.
  • Randall Kidwell read from a past news article about failed utility-district merger efforts and argued the long-running disputes have centered on control of water rather than customer rates.
  • Craig Clark, a newly elected Cumberland County commissioner representing District 3 and a South Cumberland customer, called the wholesale rate increase arbitrary and capricious. He requested an independent state audit of city water production costs only and said rates must be strictly cost-based.

No further public speakers came forward.

Chamber Report and Consent Agenda
Chamber of Commerce President Mark Hatcher promoted the Crossville Birthday Bash on Sept. 5, noting nearly 80 vendors, three bands, and activities downtown. Information is available at crossvillebirthdaybash.com.

The consent agenda passed unanimously without discussion after prior work-session review. It included:

  • – Ordinance 26-0286 adding Title 14, Chapter 12, imposing a 24-month temporary moratorium on new data centers and high-density computing facilities while staff studies infrastructure, water, noise, and utility impacts.
  • – Ordinance 26-0289 amending the FY25-26 budget for year-end adjustments.
  • – Approval of prior meeting minutes.
  • – A contract amendment for non-competitive ARPA funding.

The data-center ordinance defines the facilities, exempts existing operations and vested applications, and directs planning for permanent standards on noise, water use, and cost allocation so that developers, not local ratepayers, bear infrastructure expenses.

Other Business

  • Owners of the property under discussion for de-annexation (TMP 101 021.03) asked that the item be pulled; council agreed without objection.
  • Discussion of a contract with H2O Innovations for a 7.0-MGD membrane filtration system at the Meadow Park Lake Water Treatment Plant was deferred to the Sept. 18 work session so a 10-minute presentation on need and scope can be given.

On wholesale water rates, Mayor Crawford took responsibility for not fully anticipating that the earlier 25% increase for in-city customers would automatically trigger the same percentage rise for wholesale buyers under long-standing contracts. He moved to restore the wholesale rate to its prior level of $4.57 per thousand gallons while leaving the in-city 25% increase (to $7.85) intact to meet state fund-balance guidelines. The motion was seconded and passed unanimously. City Attorney advice indicated a resolution would follow to formalize the change by mutual agreement with the affected utilities (including the successor to South Cumberland). Council clarified that the wholesale increase had been a contractual consequence, not a separate proposal.

Attorney and Manager Reports
City Attorney addressed Flock camera concerns, citing a Sixth Circuit case finding no expectation of privacy in license plates under the plain-view doctrine and Tennessee display requirements. He said approximately 50 or more Tennessee municipalities use the systems; Crossville’s are limited to license-plate readers; only certified officers may query them and must link requests to a 911 docket number; and data retention is short (city access no more than 30 days). He said courts have found no constitutional violation while acknowledging the need to balance new technology against privacy expectations.

City Manager Valerie Hale reported that Crossville’s sales-tax collections held steady or rose slightly while statewide figures declined about 1%. The First Street project remains in design, with plans expected Oct. 5. Holiday Lake will be lowered from November through March, with notices to lakeside residents at the end of September. Residents were reminded to use the SeeClickFix portal to report potholes, streetlights, signs, and similar issues.

The meeting adjourned after the reports.

The wholesale-rate action resolves an issue deferred from the Aug. 4 work session, where utility representatives had criticized the automatic increase and limited notice.



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