HOLLOW ROCK, Tenn. — Hollow Rock water customers will see higher bills beginning August 1 after the Board of Mayor and Aldermen voted Tuesday, July 21 to raise the base water rate from $30 to $40 for the first 1,000 gallons used each month.
Other charges remain unchanged. The maintenance fee stays at $3, and sanitation pickup remains at $16.25.
In addition to the increase, the Tennessee Board of Utility Regulation (TBOUR) has ordered a feasibility study on Hollow Rock’s water system, which could eventually lead to a merger of the town’s water service with neighboring Bruceton.
Mayor Ronnie Webb told the board the study was triggered in part by the town falling behind on audits and other compliance requirements.
“The first thing is the fact that we’re falling to red,” Webb said. “That’s the first thing.”
Town Recorder RaSha Higdon said the town being behind on audits was the main reason for the state’s order of the study, as opposed to other factors.
“We’ve been on their radar since 2021,” she said.
She added that the state is pushing for consolidation across Tennessee.
“They’re not just picking on us,” Higdon said. “They’re suggesting it all over the state. A lot of those have combined.”
A contract for the study must be in place by August 15, with the full study due by April. Higdon said the study will examine three possible paths forward, and that a combination would not necessarily mean a full merger, but could take the form of a financial or managerial arrangement instead.
“Essentially, is it feasible to continue the way we are? Should we combine? Should we pipe in water from somewhere else?” Higdon said. “The feasibility study is the next step for us and TBOUR to find out how we are and how it’s going.”
Audit Presented; Books in Better Shape
Auditor Matt Wood of Alexander Thompson Arnold (ATA) presented the town’s 2023-24 audit, and said it came back with the cleanest result an audit can return.
“We believe after the audit is performed that the financial statements are free of any material misstatement or any evidence of fraud,” Wood said.
On the financial side, governmental activities showed a net position of $1.16 million, comparable to $1.18 million the prior year.
Utility fund assets came in at $1.99 million, up from $1.93 million. The utility funds also posted a positive change in net position of $80,000, reversing a loss from the year before.
One figure that has drawn questions in the community is whether the town’s water fund is operating at a loss.
Higdon said the appearance of being in the red is largely a function of depreciation accounting rather than actual deficit spending.
New meters and service lines installed in 2024 through a grant must be depreciated over the next 10 to 12 years, which means the town must account on paper for their eventual replacement costs even though the equipment is new.
“If not for counting depreciation, we would be in the black,” Higdon said. “You have to make sure you have the reserves to take care of maintenance on them.”
Wood noted three compliance findings: the town’s books were not closed within 60 days as required, a cybersecurity plan for utility funds has not yet been approved by the board, and the town’s Certified Municipal Finance Officer certification is not current. None rose to the level of a material finding.
On bank reconciliations, Wood offered to help for a capped fee, suggesting the first two months would run roughly $2,000 as his firm gets up to speed on the town’s system. He cautioned that taking on the reconciliations would create an independence issue that would prevent his firm from also serving as auditor.
Higdon said the board had discussed bringing in outside accounting help more than a year ago and declined over the cost.
Alderman Vivian Grooms said progress was already being made internally.
CMFO Certification in Progress
Part of the compliance picture involves the town’s CMFO position.
Former officeholder Tim Runions had been listed in that role but let his certification lapse and has told the board he does not want to renew it at this time.
Higdon said she is two tests away from earning the certification herself, with her first exam scheduled for August.
EEOC Claim Pending
A former town employee has filed a complaint against Hollow Rock with the Equal Employment Opportunity Commission, a federal agency that investigates workplace discrimination and related claims.
The matter appeared on the July meeting agenda but was not discussed publicly.
Town attorney Butch Maddox advised the board before the meeting to hold off on any discussion until the matter is resolved.
Webb briefly acknowledged the item, saying documents had been submitted in compliance with what was requested, before moving on.
United Way Outlines Resources Available to Residents
Two representatives from United Way of West Tennessee addressed the board during the citizen input portion of the meeting.
Sabrina Bates, the organization’s 211 resource and referral navigator, told the board that residents can call 211 to be connected with assistance for rent, utilities, food, and other needs across a 15-county coverage area.
Bates also highlighted two upcoming back-to-school events for Hollow Rock and Bruceton families.
Bruceton First Baptist Church is partnering with the Hollow Rock Beta Club for a clothing and school supply giveaway July 30 from noon to 3 p.m. and July 31 from 3 to 5 p.m.
On Saturday, August 1, the Bruceton Fire Department will host Tucker Masonry’s Cuts for Kids for students in pre-K through 12th grade, offering free haircuts, hot dogs, snow cones, and a limited number of shoes. Children must be present to receive items at both events.
Financial counselor Ashley Mayton offered free financial counseling through the organization’s Financial Empowerment Program to anyone over 18 who lives or works in the coverage area regardless of income.
She said the program also recently began offering free wills, powers of attorney, and healthcare directives through a partnership with West Tennessee Legal Services, with documents ready within six weeks.
Other Business
The board discussed a complaint from a resident on Mill Street about streets not being maintained, and a separate concern on North Street about water taste and pressure. Water Operator Austin Ernsberger said the lines in that area had recently been flushed.
Ernsberger also raised the possibility of the town eventually adopting an automated meter reading system similar to the one used by Bruceton, which transmits readings remotely and can detect leaks.
Higdon said the system would require a grant and would represent an investment of roughly $25,000 to $30,000.
The board also discussed the town’s comp time ordinance, which caps accumulation at 50 hours. Alderman Grooms noted the cap was put in place years ago after a departing employee with a large balance threw the budget out of balance. The board agreed to study how comparable towns handle the issue before making any changes.
A key lockbox for City Hall was discussed as a security measure recommended by the comptroller’s office and MTAS, with no deadline attached.
Park bathrooms and street paving were both tabled pending additional information.
Hollow Rock’s Board of Mayor and Aldermen meets the third Tuesday of each month at 5 p.m. at Town Hall.
