MUD considers lowering residential sewer rates

10:00 p.m. Jan. 13, 2026

MUD considers lowering residential sewer rates

DUANE CROSS
MCO Publisher•Editor

On Tuesday, Jan. 13, the Metro Moore Utility Department held a long, sometimes heated discussion about whether to further lower residential sewer rates. In the end, they did not vote and decided to review the issue again later.

The proposal would cut the residential sewer rate by another $2 per 1,000 gallons, bringing it to $18.89 starting Jan. 1. This change would affect only residential customers, not commercial or industrial ones.

Those in favor of the rate cut said the sewer system collects more revenue than it needs and that residential customers are paying more than their fair share. Board member Glen Thomas pointed out that only about 315 people use the sewer system and questioned why they should help cover costs for many more water-only users.

“We’re still going to come in around $800,000,” Thomas noted, citing current collection trends. “Why should sewer customers be asked to pay more than what’s necessary?”

Keeping an Eye on State Law

Chairman Barry Posluszny urged caution. He referred to a state-required wastewater rate study finished in 2024 and warnings from the Tennessee Comptroller’s Office about keeping the utility financially stable. The study predicted that wastewater rates would need to increase by 7%, 9%, and 11% from 2025 to 2028 to comply with state law.

Posluszny pointed out that the department already lowered sewer rates by about 8.75% in July 2025, which was not planned for in the current budget.

“If we make no rate increases at all, the projections show we could have negative net revenue in consecutive years,” Posluszny said. “That puts us in violation of Tennessee law.”

Posluszny also worried about future capital projects and unknown construction costs. For example, water line work along Highway 82 could cost much more because of the tough terrain.

He also noted that sewer rates have not increased since 2021, despite recommendations from the independent rate study. While acknowledging recent sewer rehabilitation projects that have improved system performance, Posluszny argued the department remains “behind the curve” compared to the study’s guidance.

Dilemma: Cut Now, Increase Later

Thomas questioned whether some numbers in the rate study were accurate. For example, the study included revenue from a special assessment the department has not collected yet, which could make the operating revenue look several hundred thousand dollars higher than it really is.

In the end, the board agreed to only discuss the issue. Posluszny said they will bring it up again at a future meeting, and any approved rate change could be made retroactive to Jan. 1.

“I understand the pressure residents are under,” Posluszny said. “But I don’t want us to lower rates now and then be forced into a much larger increase later.”