The Mosheim Board of Mayor and Aldermen approved an ordinance on first reading Wednesday night 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 Wednesday 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 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 sells water to North Greene Utilities and Old Knox Utility District.
The rate increase would take effect in July.
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 water rate increase will be subject to a public hearing and second reading at the May meeting the Mosheim board before becoming final.
In other business Wednesday night, the board approved the town’s Fiscal Year 2026-2027 budget.
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 board also approved recommended edits and revisions to the Town of Mosheim’s Zoning Ordinance on final reading.
The zoning ordinance was first adopted in 1992, and has been amended several times since then. The present changes are a result of a comprehensive review of the 27-page ordinance.
Most of the changes are minor revisions and corrections to terms and spellings in the document however, there are a couple changes that are more specific additions to the ordinance.
One of the updates requires “ready-removable” shed structures only be fitted for minimal electric and no plumbing. Only one will be permitted per lot, unless permission was granted for a variance by the Board of Zoning Appeals, and the structures will have to be set 10 feet from a property line.
Another update will require construction on a structure must be completed within 365 days of issuance of the permit. Extensions will be at the discretion of the building inspector.
The rezoning of a property at 950 Main St. in Mosheim from B-1 Business District to R-2 Residential District was also approved on final reading. The property has always been residential, and is surrounded by residential property. The property owner recently demolished a dilapidated home on the property, and wishes to place a new home on the site. However, a new residence could not be put in place until the rezoning occurred.
In addition, the board approved an ordinance updating its building permit costs on first 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. The ordinance requires a public hearing and second reading before becoming final.
Residential building permits up to 2,000 square feet would increase from $500 to $800, with $50 being charged for every additional 100 square feet, up from $20.
