Village pursues resident water v

The Tellico Village Property Owners Association Board of Directors and management are requesting residents respond to a consent form that could establish a public water authority to tackle infrastructure concerns and manage water and sewer service.

Chet Pillsbury, POA chief executive officer, initially proposed a water authority in October after what he said were months of searching for ways to address $31 million in Village infrastructure needs over the next five years.

Pillsbury has been meeting with local and state government officials to determine if an authority is a good fit for the community, as well as talking with Loudon Utility Board and Tellico Area Services System to maintain good relationships.

The Tennessee General Assembly must approve the creation of an authority, and 51% of Village residents must vote in favor. Once the 51% vote happens, Pillsbury and the POA board will assess if moving forward is the correct path, and board members will vote on the proposal.

If a water authority is established, the POA would select a board of directors consisting of four Village property owners and one member of the POA board.

Marty Inkrott, POA board president, said the authority appears to be the best solution.

“The board is not saying they are for a water authority,” Inkrott said. “The board is for the concept of a water authority and for looking into it to see if it is the right thing for Tellico Village. We are not pushing hard for it, because we don’t know either for sure, so no decision has been made by the board or by anybody in terms of doing it. … We want to look into it more.”

Cooper Communities began construction on Tellico Village in 1985 and agreed to invest more than $10 million in infrastructure and amenities, with the intent the POA would operate the utility systems. According to the community’s covenants and restrictions, the POA was required to provide funds for any need associated with water and sewer systems.

Although improvements have been made since, creating a water authority would give the board more financial opportunities and make the risk of investing in repairs and maintenance more feasible.

If a decision is made to not go forward with a water authority, infrastructure improvements would ultimately have to be paid for by property owners through monthly assessments or water and sewer bills.

“I don’t know if there’s any one resolution,” Inkrott said. “It’s a matter of just looking at different options, and forming a water authority is what some other communities throughout the country have done. Basically what it does then is it sets it up as a government entity, but then it also helps you to qualify for grants that we can’t qualify for otherwise, bonds and lower interest rate loans.”

Inkrott said the board is pursuing the approach because it seems like a good option.

There are no known plans to change relationships with LUB or current Village public works employees.

Loudon Mayor Jeff Harris, who is interim city and LUB manager as Loudon City Council looks for a replacement, said the LUB board and staff don’t have an opinion about a proposed water authority in Tellico Village.

“From the information I’ve gathered, we’re really neutral on it because they’re still going to be getting water from us, they’re not going to be producing water,” Harris said. “I think the main emphasis here with the water authority is so they can apply for grants and long-term financing to upgrade their infrastructure.

“... I think from the little bit of knowledge I have of it, part of the problem is (the infrastructure) wasn’t initially planned for the large-scale homes that are out there now,” he added. “They’re going to have to pay for that whether they did it through us or if they get a water authority establishment. … If they went through us, they would still have the same expense, but they wouldn’t have control.”

A water authority allows the POA more control over how projects are executed and financed.

Regarding a recent statement about LUB shutting off Tellico Village’s water valve, Harris said he understands that has never happened and would never be a concern.

LUB will break ground Jan. 24 on a $70 million expansion to its water treatment facility.

The POA board has requested residents return consent forms to the POA office or Welcome Center by Feb. 15. Residents who haven’t submitted a consent form can expect a visit in the coming weeks from volunteers providing additional information.