|Original Document: |
Text of Document: September 17, 2007
Ms. Cristal Odom, City Recorder
City of Lobelville
P.O. Box 369
Lobelville, Tennessee 37097
Re: Sale of Water at Campgrounds
You have asked MTAS if the city sells water to a campground with one meter can they turn around and resell the water to the camper. Can they do this? I have reviewed your question with MTAS Legal Consultant Josh Jones.
The answer to your question is yes; however, the campground cannot charge more than the water rate set by the city. The campground can sell the water for an amount to recover their cost for water. Some campgrounds include their water recovery fee in their rental fees.
The city has an obligation to provide water to customers in a certain classification at the same rates. Rates for water sales within the city of Lobelville are set by the city. Rates charged by private utilities are set by the Tennessee Regulatory Authority. Since the campground is not operating as a private utility, it must abide by the city’s rate system.
You may refer the campground to the City of Knoxville v. Knoxville Water Co., 64 S.W. 1075, Tenn., 1901 and Memphis Power and Light v. City of Memphis; 112 S.W. 2nd; 817.
Please call me if you have questions or comments.
Municipal Management Consultant