South Fork Utility District Considers Merger Possibility with Bristol, Tennessee
In a recent turn of events, the Bristol, Tennessee City Council finds itself exploring potential merger options between the City of Bristol, Tennessee’s utility services and the South Fork Utility District (SFUD). Josh Barrett, an SFUD Commissioner, presented the situation to the City Council work session on Tuesday. He said, “Our backs are against the wall.”
July 18th – A Decision Day for SFUD
The SFUD has a deadline of July 18 to determine whether the City of Bristol, Tennessee or the Bristol/Bluff City Utilities District is interested in a possible merger. Barrett said, “There’s basically three options on the table as of today and that is where we will either be forced to merge with you, forced to merge with Bristol/Bluff City, or they will leave us alone.”
The July 18 merger meeting will be directed by the Tennessee Board of Utility Regulation. The board has been collaborating with the Tennessee Comptroller’s Office to examine the future of SFUD, after a two-year investigation resulted in significant financial wrongdoing allegations against SFUD and the resignation of the previous board.
A Decision Awaits The City Council
Commenting on the development, the city manager of Bristol, Tennessee, Kelli Bourgeois, disclosed that she had initially declined SFUD’s merger proposition. However, with SFUD’s second approach, she decided to bring it up with the council. Bourgeois explained that Bristol Utility services could consume SFUDs around 3,400 customers, who use about 600,000 gallons per day.
Bourgeois also noted that a comprehensive financial review would be necessary before moving forward with the merger. She said, “If council would like us to consider taking them over as a district, we would really want to have our financial advisor review and make sure that it makes sense for our utilities to assume all of those debts and liabilities.”
Reactions from Council Members
Bristol City Council member, Mark Hutton, expressed his openness to the idea of a merger, but voiced concerns about potential disagreements due to SFUD’s inclination to retain independence. Hutton said, “I am concerned about interpersonal relationships. It feels like what your heart in the matter is, is that you guys want to be left alone. If we’re having to take over, that doesn’t sound like a great situation for us.”
Meanwhile, Council member Margaret Feierabend believes that a merger could be advantageous for the city and its residents, provided that all aspects are favorably worked out. Lea Powers, another Council member, expressed her desire for more information before making a decision.
The future course of action remains uncertain as the council deliberates on the merger and the city of Bristol, Tennessee eagerly awaits the July 18 decision day.
