Portland Explores Partnership with White House Utility District for Enhanced Water Services

During a recent work study session, Portland's City Council engaged in discussions with Bill Thompson, General Manager of the White House Utility District (WHUD), to explore the possibility of WHUD providing water services to the city.

 

Thompson highlighted that the western side of Portland requires immediate attention, as indicated by WHUD's hydraulic model.

 

He noted that the city's existing model, completed in 2020, is outdated and incompatible with WHUD's current data.

 

While Portland's current water capacity meets its needs, Thompson emphasized that the distribution system presents significant challenges.

 

WHUD plans to assess development patterns to determine necessary enhancements to the water system.

 

Thompson expressed confidence in resolving these issues, stating, "We believe we can get that resolved. At the end of the day, what you have to look at is you have so many departments. We have two things we do: water and sewer. That makes our focus much more narrow."

 

Addressing concerns about rate disparities, Thompson estimated that Portland has approximately 2,000 customers outside city limits and 5,000 within.

 

He explained that external customers are effectively subsidizing internal ones, and harmonizing these rates could take up to five years.

 

WHUD's current rate structure includes a flat fee plus a per-gallon charge, applicable to all clients regardless of classification.

 

Thompson projected that if WHUD were to service Portland today, external customers might see a monthly bill decrease of about $20, while internal customers could experience an increase of approximately $10.

 

He also mentioned that WHUD's capital improvement plan includes around $87 million in upgrades over the next five years, servicing 11 cities in Tennessee and all of Simpson County, Kentucky.

 

Mayor Mike Callis noted that transitioning to WHUD as a water supplier would necessitate a charter amendment approved by the General Assembly.

 

Discussions with legislators are ongoing, particularly concerning the handling of Portland's water debt.

 

Thompson suggested that WHUD could assume both water and sewer bonds, with Portland continuing payments until the debt is settled, ensuring the city remains financially whole.

 

Alderman Brian Woodall inquired about a proposed $2 million debt for water meter replacements and its impact on any agreement.

 

Thompson advised postponing this initiative, as WHUD would handle meter replacements and incorporate GPS mapping for all meters.

 

Vice Mayor Megann Thompson asked about the cost to upgrade Portland's water system to WHUD's standards, receiving an estimate of approximately $30 million.

 

Alderman Drew Jennings questioned the timeline for a Memorandum of Understanding (MOU) if the council decides to proceed.

 

Thompson indicated that reaching an MOU by the end of June would be ambitious but feasible, leading to a formal agreement thereafter.

 

Alderman Vince Ellis asked about potential cost savings if WHUD assumed the water bonds.

 

Finance Director Rachel Slusser estimated the sewer portion at around $32 million, scheduled for payoff by 2055, including a new sewer interceptor line and plant.

 

Regarding current Portland water employees, Thompson assured that WHUD would retain them, matching their vesting schedules in WHUD's retirement plan, though WHUD does not offer the state's retirement plan.

 

Mayor Callis concluded that an MOU would be presented to the council in January, pending the group's consensus.

 

As Portland considers this potential partnership, residents are encouraged to stay informed and participate in upcoming discussions to ensure the city's water infrastructure meets future demands.