BUILDING A STRONGER REGIONAL WATER FUTURE

CPWA: Planning Today for Tomorrow's Water Needs

Learn what a potential merger with the Cumberland Plateau Water Authority could mean for employees, customers, infrastructure, rates, and the long-term future of the Plateau.

Why Should a Merger Be Considered?

Water and wastewater utilities across Tennessee are facing rising costs, aging systems, increasing regulations, workforce challenges, and growing demand. Regionalization gives communities a way to plan together rather than carry every future burden alone.

Aging Infrastructure

Water and sewer lines, treatment facilities, pumps, tanks, and related assets require long-term investment and replacement planning.

Future Water Supply

Regional cooperation helps communities evaluate source water, storage, drought resilience, and emergency redundancy together.

Rising Costs

Construction, chemicals, equipment, engineering, compliance, and debt costs continue to rise for every utility.

Potential Benefits of a Merger

A merger is about strengthening public utility service, improving long-term planning, and creating a larger platform to support the needs of Crossville and the region.

Rate Stability

A larger customer base can help spread the cost of major infrastructure needs, reducing pressure on one city or one group of ratepayers.

Infrastructure Improvement

Regional planning can help prioritize water and sewer improvements, replacement projects, treatment capacity, and long-term reliability.

Better Funding Position

A regional utility may be better positioned to pursue grants, low-interest loans, and outside funding opportunities for major projects.

Operational Strength

Shared staffing, equipment, technology, emergency response, purchasing, and administrative resources can improve efficiency.

Water Security

Regional cooperation supports long-term planning for water sources, drought preparedness, storage, treatment, and system redundancy.

Local Service Continues

The infrastructure remains in the community and continues serving all customers, with CPWA responsible for operating and improving it.

Protecting Employees

The employees who operate and maintain the merging utility system are essential to its future. Their knowledge, experience, and local understanding are valuable assets.

Section 6(e) of TN Senate Bill 2920 states: “The Authority will ensure that all employees acquired through contract with any utilities, will not suffer any loss of wages and benefits, and all employees of the Authority will be members of the Tennessee Consolidated Retirement System (TCRS), or may continue in their current retirement program.”

Employee Protection Matters

  • Employment continuity should be a priority in any merger agreement.
  • Local experience and institutional knowledge remain critical to system operations.
  • A larger organization can create expanded training and career opportunities.
  • Employees may benefit from broader support, standardized policies, and long-term organizational stability.

Who Owns the Utility Assets?

A merger does not mean the infrastructure leaves the community. The water and sewer assets remain physically located where they are and continue serving the same customers.

Today

Water and sewer customers (not tax dollars) pay for the physical assets associated with its water and wastewater utility. These include water treatment facilities, wastewater treatment facilities, storage tanks, distribution mains, sewer collection lines, pump stations, lift stations, utility buildings, equipment, and related rights-of-way. These assets are managed by the utilities for the benefit of its customers.

If A Utility Merges with CPWA

If a merger is approved and a utility board or council authorizes the transfer under the terms of a final agreement, ownership of specified utility assets would transfer from the merging utility to the Cumberland Plateau Water Authority. CPWA would become responsible for operating, maintaining, improving, and planning for those assets as part of a regional public utility system.

Do My Tax Dollars Pay for the Water and Wastewater System?

No. The water and wastewater system is operated as an enterprise fund, which means it is financially separate from the General Fund.

How Are the Water and Wastewater Systems Funded?

The operation, maintenance, repair, and improvement of the water and wastewater system are funded primarily through customer rates and fees, not property taxes or general tax revenues.

Revenue collected from utility customers is used to pay for:

  • Daily operations
  • Water and wastewater treatment
  • Infrastructure maintenance and repairs
  • Capital improvement projects
  • Equipment replacement
  • Debt service related to utility projects
  • Regulatory compliance
  • Future system investments

These funds are dedicated to supporting the utility and the customers it serves.

What Happens to My Tax Dollars?

General tax revenues collected are deposited into the General Fund, which supports municipal services such as:
  • Police services
  • Fire protection
  • Parks and recreation
  • Streets and public works
  • Administration
  • Other general government operations
The General Fund and the Water and Wastewater Enterprise Fund are maintained as separate financial accounts and serve different purposes.

Why Is This Important?

Understanding how utilities are funded helps explain that decisions regarding water and wastewater systems are generally based on the financial needs of the utility itself, not on general tax revenues.

Whether operated by a City or by the Cumberland Plateau Water Authority, the water and wastewater system is expected to generate the revenue necessary to operate, maintain, and improve the system through the rates paid by its customers.

Bottom Line: Water and wastewater bills, not City tax dollars, fund the operation and long-term sustainability of the utility system.

Concern: "Are we giving away our assets."

The infrastructure does not disappear, move, or stop serving a city. Water lines, sewer lines, treatment facilities, tanks, and pump stations remain in the community.

Fact: The assets remain public utility assets.

The purpose of a transfer is to place long-term responsibility for operation, maintenance, improvement, compliance, and planning under the regional public authority responsible for service.

Who Owns the Water?

A utility does not own the water resource in the same way it owns a truck, building, line, or pump station. Water use is governed by Tennessee law, permits, regulations, and public-interest requirements.

Water Is a Public Resource Regulated by the State

Surface water and water withdrawals are regulated by the State of Tennessee through applicable laws and regulatory agencies. Utilities obtain the right and authorization to withdraw, treat, and distribute water for public use in accordance with those requirements.

The focus of a merger is not “selling the water.” It is about who is best positioned to responsibly manage, treat, deliver, maintain, and invest in the infrastructure needed to serve customers now and in the future.

Additional Topics Citizens Ask About

These are common areas of discussion when communities consider regional utility partnerships.

Governance & Representation

Any final structure should clearly explain how voice and representation would be maintained in regional decision-making.

Debt & Financial Planning

Regional utilities can plan capital needs across a larger system and use long-term financial tools to reduce short-term pressure.

Economic Development

Reliable water and sewer capacity supports housing, business growth, industrial recruitment, and long-term community development.

Emergency Response

Regional systems can share crews, equipment, inventory, and operational support during outages, breaks, storms, or drought conditions.

Customer Service

Customers should continue receiving dependable service, billing support, repair response, and clear communication during any transition.

Transparency

Citizens deserve access to clear information, public meetings, financial facts, project updates, and answers to common questions.

The Bottom Line

A merger is not about removing assets. It is about placing public utility infrastructure under regional stewardship so it can be operated, maintained, improved, and protected for future generations.

Frequently Asked Questions

Straightforward answers to common questions about the potential merger.

Yes. Drinking water quality remains regulated by state and federal standards regardless of which public utility operates the system.

A merger does not automatically require an immediate rate increase. Any future rate decisions would be made through the appropriate governing process and should be based on cost of service, capital needs, debt, and long-term planning.

No. The intent of regionalization is to strengthen the organization and retain the experienced workforce needed to operate and maintain the system.

No. The physical infrastructure remains in the community and continues serving local customers. The responsibility for managing and improving those assets would shift to the regional authority if the merger is approved and finalized.

Regionalization allows communities to share planning, costs, equipment, staffing, expertise, financing, and long-term water resource strategies instead of each system trying to solve major challenges alone.

Citizens should continue reviewing information, asking questions, attending public meetings, and learning about the potential benefits and responsibilities involved in a merger.

Financial & Operational Snapshot

A transparent public-information page should help citizens quickly understand the major themes behind the discussion: service reliability, infrastructure investment, rate stability, funding opportunities, and long-term regional planning.

17,000+

Customers currently served by CPWA

Regional

Planning approach for water and wastewater infrastructure

Public

Utility assets remain dedicated to public service

Long-Term

Focus on rate stability, reliability, and sustainability

Myth vs. Fact

Many questions about regionalization come from understandable concerns. This section is designed to address common misconceptions directly.

Myth: “This is giving away our water.”

Fact: The water resource itself is regulated by the State of Tennessee. The discussion is about utility infrastructure, operations, planning, and long-term service.

Myth: “Tax dollars pay for the utility.”

Fact: Water and wastewater systems are funded primarily through utility rates and fees, not the a city’s General Fund tax revenues.

Myth: “Employees are no longer needed.”

Fact: Local utility employees and their knowledge are critical to continued service, system reliability, and a successful transition.

Myth: “The assets leave.”

Fact: Pipes, tanks, treatment facilities, pump stations, and sewer infrastructure remain physically in the community and continue serving customers.

Myth: “Rates automatically increase.”

Fact: A merger does not automatically require an immediate rate increase. Any future rate decisions should be based on cost of service, debt, operations, and capital needs.

Myth: “We lose our voice.”

Fact: Cumberland Plateau Water Authority Board Structure

The Cumberland Plateau Water Authority (CPWA) is governed by a seven-member Board of Commissioners established by state law to provide balanced representation from across Cumberland County and the City of Crossville.

Board Composition

  • One (1) representative from the former Crab Orchard Utility District
  • One (1) representative from the former South Cumberland Utility District
  • One (1) representative from the former West Cumberland Utility District
  • One (1) representative from the former Catoosa Utility District (as it existed prior to its consolidation with the City of Crossville in 2005)
  • Three (3) representatives from within the City of Crossville, excluding areas already represented by the former Crab Orchard, South Cumberland, or West Cumberland Utility District boundaries

Appointment Process

  • The Cumberland County Mayor appoints the four representatives from the former utility districts, subject to approval by the Cumberland County Commission.
  • The Mayor of the City of Crossville appoints the three City representatives, subject to approval by the Crossville City Council.

Qualifications

To serve on the Board, a commissioner must:

  • Be a person of good standing and reputation.
  • Have been a resident of Cumberland County for at least one year.
  • Reside within the geographic area represented by the position.
  • Not be an employee of any water or wastewater utility in Cumberland County.

Terms of Office

  • Initial appointments were staggered to create continuity on the Board.
  • After the initial terms, all commissioners serve four-year terms.
  • Commissioners continue serving until a successor has been appointed and qualified.
  • Vacancies are filled by the same appointing authority responsible for the original appointment, and the replacement must reside within the same geographic area.

Board Operations

  • A majority of commissioners constitutes a quorum for conducting business.
  • Each commissioner has one equal vote on all matters before the Board.
  • he Board elects a Chairman, Vice-Chairman, and Secretary annually from among its members.
  • Meetings are conducted as public meetings in accordance with the Tennessee Open Meetings Act.
  • The Board establishes its own rules of procedure and conducts business through motions and resolutions.

Compensation

Board Members:

  • Serve without a salary.
  • May receive a per diem, established by Board resolution, of up to $300 per meeting for no more than 12 meetings per calendar year.
  • May be reimbursed for reasonable expenses incurred while performing official duties in accordance with CPWA policy.
  • May be eligible for medical and life insurance benefits to the same extent as CPWA employees, if authorized by the Board.

Governance Philosophy

The Board’s structure was intentionally designed to provide regional representation while ensuring that both the former utility districts and the City of Crossville have a voice in the Authority’s governance. Every commissioner has an equal vote, reinforcing the principle that decisions are made collaboratively and in the best interests of the entire regional utility system rather than any single community.

Current Merger Discussions in Process

CPWA + City of Crossville
Process Timeline

Citizens deserve to understand the steps involved. This timeline can be updated as public meetings, studies, agreements, and referendum milestones occur.

Step 1
COMPLETE
Public Discussion Begins

CPWA, leaders, consultants, employees, and citizens begin reviewing the potential benefits, concerns, and requirements of regionalization.

Step 2
COMPLETE
Financial & Infrastructure Review
Information is reviewed regarding assets, debt, capital needs, rates, employees, water supply, sewer operations, and future project requirements.
Step 3
Public Education & Community Questions
Citizens are provided opportunities to ask questions, review information, and better understand the potential impact of a merger.
Nov. 2026
Referendum

City voters consider whether to authorize the Council to continue moving forward with the potential merger process.

After Vote
Final Agreements & Transition Planning
If authorized, final agreements, employee protections, asset transfer details, financial terms, and operational transition plans would be developed and reviewed.

Regional Service Area & Infrastructure Map

A future interactive map can help citizens visualize CPWA service areas, Crossville utility assets, treatment facilities, storage tanks, water lines, sewer infrastructure, and potential regional connections.

Community Video Library

Short videos can help explain complex utility topics in a clear, personal, and accessible way.

Independent Approach vs. Regional Approach

This comparison helps citizens understand the practical differences between continuing as separate systems and planning through a regional authority.

Independent Approach

  • Future capital costs are carried by a smaller customer base.
  • Major projects may create greater rate pressure.
  • Redundancy and emergency support may be more limited.
  • Planning can become fragmented across multiple systems.
  • Funding applications may be evaluated as individual system needs.

Regional CPWA Approach

  • Future infrastructure costs can be planned across a broader system.
  • Regional scale can support long-term rate stability.
  • Shared crews, equipment, and resources improve response capability.
  • Capital planning can be coordinated across service areas.
  • A regional utility may be better positioned for certain funding opportunities.

Download Center

A central document library gives citizens a single place to find presentations, reports, studies, agendas, financial information, and public meeting materials.

City Work Session Presentation
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Frequently Asked Questions
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Financial Impact Analysis
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Water Loss Data
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Public Meeting Schedule
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Referenced Studies & Reports
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Stay Informed. Ask Questions. Learn the Facts.

CPWA is committed to transparency and public education as the utilities evaluate their water and wastewater future. These decisions are about long-term service, infrastructure, employees, rate stability, and the future of the Cumberland Plateau.

Watter Matters Contact Form