Knox County Commissioner Supports Tennessee Comptroller’s Investigation Into Hallsdale-Powell Utility District

Image Credit: hpud.org

Press Release –

Knox County Commissioner Rhonda Lee, R-Powell, supports the Tennessee Comptroller’s Utility Management Review Board (UMRB) investigation into Hallsdale-Powell Utility District (HPUD). Lee has been in communication with the Comptroller’s office to encourage an investigation since being elected in 2022.

The UMRB adopted a recommendation for staff to “investigate the financial, technical, and managerial competency of the District, with an emphasis on the fairness and reasonableness of the District’s level of debt.” Comptroller Assistant Director Ross Colona said the initial investigation may warrant an updated rate study at a future meeting.

“Since being elected in 2022 I have been in communication with the TN comptroller’s office and state legislators about community concerns with HPUD,” said Commissioner Lee, whose county commission district represents many HPUD ratepayers. “This broad investigation is needed to make sure ratepayers have effective management and service so we can improve this situation.”

During the UMRB meeting it was stated that HPUD is one of the largest water and sewer districts in Tennessee. According to Comptroller staff, 46% of the water produced by the district is not being sold, also referred to as water loss. Colona cited reports showing that since 2018 the water loss problem has not improved, rising from 42% in 2018 to 46% in the most recent reported year.

Colona emphasized that the investigation is “holistic” including the effectiveness of the utility district’s management. A “red flag” Colona mentioned was that a typical utility district has a net income of about 10% and in 2022 HPUD had $11 million net income on $38 million in revenue.

During the meeting Colona said repeatedly rates are “high” for HPUD even though a 2020 report said they were “justified” based on level of spending, capital projects, and debt levels.

“I am pleased that over 10 years of relentless pursuit for accountability has yielded a significant step in addressing long standing issues with HPUD,” said Russ Rymer, a Halls resident and community advocate on HPUD. “I’d like to publicly thank Knox County Commissioner Rhonda Lee for her hard work and dedication to concerned residents. Her efforts have been tireless since being elected to a county commission seat that represents a significant number of those served by the utility district.”