The Mosheim Board of Mayor and Aldermen tabled action on an ordinance to increase water rates in the town, and on the town’s fiscal year 2027 budget during its meeting Thursday night.
Both the water and budget ordinances were approved on first reading in April, but some members of the board said they would like to review both matters further before approving them on second reading.
In April, the board approved an ordinance on first reading that would increase water rates by about 5% for Town of Mosheim water system customers.
The town purchases its water from the Greeneville Water Commission, which raised rates both of the previous two years by about 5% each year. The Water Commission’s rates are also set to increase by a similar margin in the coming fiscal year.
Mosheim did not raise rates when the Water Commission began raising them in 2024, but Mosheim officials said in April that they were in danger of operating the water system at a loss this fiscal year due to not taking any rate action.
The board voted unanimously in April to increase the town’s water rates to $17.15 for the first 1,000 gallons used, up from $16.33. Every additional thousand gallons over the first 1,000 used would cost $7.88, up from $7.50.
Wholesale water rates would also see a similar increase, with $525 being charged for anything up to the first 100,000 gallons of water, an increase from $500. Every 1,000 gallons used over 100,000 would cost $3.94, up from $3.75.
Mosheim officials reiterated Thursday that the water system could end the current fiscal year at a loss, and that rate action would be needed to avoid a similar situation in the coming fiscal year.
Mosheim currently sells water to North Greene Utilities and Old Knox Utility District, but officials noted that Old Knox is laying a new water line and would soon no longer be a customer of Mosheim. North Greene is also looking to purchase less water from Mosheim.
Alderman Stacy Carter said he would like to see more numbers closer to the end of the fiscal year to know how the close the water department would be to not covering costs.
Carter motioned to table the ordinance and Matthew Solomon seconded the motion, which was approved.
The rate increase would take effect in July according to the ordinance if it were given final approval.
Mosheim has not raised water rates since 2021. At that time, rates were raised for the same reason: to cover the costs of a Greeneville Water Commission rate increase.
The board also tabled action on the town’s Fiscal Year 2026-2027 budget.
The budget had been approved on first reading in April.
The budget is largely unchanged from the previous fiscal year’s budget. Mosheim does not have a property tax.
The budget includes about $1.6 million in revenues to the town’s general fund, and the same $1.6 million in expenditures. The town’s general fund balance sits at about $3.6 million.
The water fund is expected to breakeven with $555,600 in revenues if the water rate increase is approved, otherwise the fund would see thousands of dollars in losses due to the rising costs to purchase water from the Greeneville Water Commission.
The sewer fund budget includes an expected $2.7 million in revenues, and $2.7 million in expenditures.
The balance of the water fund is about $2.6 million, and the sewer fund balance is about $11.4 million. However, each of those balances include assets in each system and is not all cash.
The general fund budget includes raises for all Town of Mosheim employees. Solomon said that he supported raises for the town’s police department, which Police Chief Dustin Jeffers requested to help retain personnel according to officials, but that he was hesitant to give raises to every other town employee. Carter said he agreed with Solomon. Solomon made a motion to table action on the budget and Carter seconded the motion, which was approved.
Both the water rate ordinance and budget ordinance could still be considered on second and final reading at the June meeting of the board according to Mosheim officials if substantial changes were not made to either ordinance. Town officials will consult with Town of Mosheim Attorney Doug Payne on whether or not either ordinance will be required to return to first reading again.
In other business Thursday night, the board discussed purchasing a .45 acre parcel of land at 950 Main St. in Mosheim that is located adjacent to Town Hall. The purchase price for the property is currently $65,000, but board members said they felt the price would too high. The board approved a motion stating that it would consider purchasing the property if it was priced at $55,000.
In addition, the board approved an ordinance updating its building permit costs on second reading. The building inspector the town contracts with increased some of his rates, and therefore the town is increasing its rates to cover those increases.
As a part of the ordinance, residential building permits up to 2,000 square feet will increase from $500 to $800, with $50 being charged for every additional 100 square feet, up from $20.
The board also approved the sale of two trucks and a lawnmower after receiving bids for the sale of the equipment. A 2003 Chevrolet truck will be sold for $700, and a 2006 Chevrolet will be sold for $2,508. A Bad Boy lawnmower will be sold for $505, while two identical $105 purchase bids for a John Deere mower were received. Town officials tabled action on selling the John Deere mower, and are going to consult with Town Attorney Doug Payne in deciding how to proceed with the identical bids.
In addition, the board approved $10,709 in write-offs of unpaid utility bills. A total of $9,164 of the write-offs were sewer bills, while $1,645 were water bills. Officials said they are often bills from those renting property in town briefly, who then move out of the area without paying their bills.
The board also approved a contract with a state contracted agency to provide interpreter services when needed for the town departments such as the police department. The interpreter program carries no monthly fee, and will only bill the town when their services are called upon.
