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Illegal loans made between the water and gas departments of Rockwood Water, Wastewater and Gas Utilities will be reviewed by a state board and officials.
They will also have to hike water rates 10 to 12 percent.
Rockwood Mayor James Watts, interim utility manager Ron Berry, City Attorney Elmer Rich and City Recorder Jim Hines learned about the developments at a recent meeting with Dennis Dycus, director of the Tennessee Division of Municipal Audit.
The details were shared by Watts in a letter to the Rockwood City Council this month.
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