State representative, Harry Brooks, who represents a
portion of Knox County has filed a bill that could have a huge impact on
the Lenoir City Utility Board and Lenoir City it's self.
Brooks bill, HB0269, would greatly alter the make up of
the LCUB power board to add several more members to that board from Knox
County. The logic behind Brooks bill would be to add enough Knox County
members to the power board to give a majority vote to the Knox County
board members. The current board is made up of the Lenoir City Council,
mayor and two Knox County residents.
A large majority of LCUB's electric customer base is
in west Knoxville. Rep. Brooks objective could tip the balance of power
to the Knox County board members in any vote. The matter that could be
at the heart of the bill would be to force LCUB to pay in-lieu-of-tax
payments to Knox County. Currently, LCUB only pays in-lieu-of-tax
payments to Lenoir City. Last year, LCUB paid Lenoir City 3.1 million
dollars, nearly 25% of their budget.
The bill is in it's early stages but if passed, could
have big impact on how LCUB operates and Lenoir City's budget. I'll keep
an eye on it and keep you posted on the progress.
Below is the summery of the bill from the state's web
site.
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Bill Summary
This bill requires certain municipal utility boards to provide
representation for customers in the county where the municipality is
located and in adjoining counties.
Generally under present law, a municipality conducting any utility
service including waterworks, water plants, water distribution
systems, and sewage collection and treatment systems is authorized
to extend such services beyond the boundaries of the municipality to
customers desiring such service.
Under this bill, if a municipality has created a separate utility
board to exercise the municipality's power to operate any public
utility service, and the public utility service provides any of its
services in more than one county, and the service area is wholly
located within this state, the board must have proportionate
representation for customers in the county where the municipality is
located and in adjoining counties.
This bill specifies that:
(1) A board must have at least one member who is a resident of each
county served outside of the county where the municipality is
located; however, based on proportionate representation, more than
one seat may be required. If the additional seats to the board would
create an even number of board members, one seat may be added to the
board, which must be filled by the municipality. To achieve
proportionate representation, a board must either:
(A) Reserve vacancies occurring on the board for proportionate
representation purposes; or
(B) Increase the number of members on the board to accommodate seats
required for proportionate representation purposes;
(2) The county mayor and governing body of the county served outside
of the county where the municipality is located must nominate and
elect or appoint the new board member to fill a seat by following
the same procedure used by the municipality to appoint board
members. The seat must be filled by a person who:
(A) Is a resident of the respective county;
(B) Is a customer of the public utility service;
(C) Is not a city council person or employee of the municipality;
and
(D) Is not an employee or member of the board of any other utility;
and
(3) The terms of board members must be the same as other members of
the board, and each member will serve until a successor is selected
and assumes office. If a vacancy occurs, the respective county mayor
must initiate the procedure to select a successor to fill the
vacancy for the remainder of the unexpired term.
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