Before he became Chattanooga mayor nearly three decades ago, Jon Kinsey spent most of his career buying and developing properties and businesses in the private sector.
But after a couple of years at city hall, Kinsey thought he had found what may have been his best deal by having the city of Chattanooga take over a privately owned water utility.
In 1998, the Chattanooga developer-turned-mayor became convinced the city could lower water rates and save on fire hydrants and other water services if it bought Tennessee American Water. Under public ownership, the water utility wouldn’t have to pay dividends to shareholders or income taxes to Uncle Sam, and as a city entity, the utility could borrow money at lower rates.
“I definitely think it would be better for all the customers of Tennessee American and the citizens they serve if it were a publicly owned utility,” Kinsey said in a phone interview last week. “There’s no question that rates would be cheaper, and we wouldn’t have to rely upon people in New Jersey when and where to make improvements.”