Pegram moves forward on sewer plant upgrade, purchases land for expansion

The Town of Pegram is moving forward with a major upgrade to its sewer system, including the purchase of land for a new treatment facility and the installation of a new type of sewer plant designed to improve capacity and long-term reliability.

Last month, the Pegram Board of Mayor and Aldermen voted to purchase the field that houses the town’s drip irrigation system, a move required by the state to support ongoing sewer operations. The town had previously leased the property.

“We voted last month to purchase the field that the drip irrigation is in,” Mayor Charles Morehead said. “The state has come back and said we either need to purchase it or have a lifetime lease on it.”

According to Town Recorder and Financial Director Tina Morehead, the board approved the land purchase at $123,080, finalizing ownership of the site used for the town’s existing drip field and planned expansion.

The sewer system currently serves approximately 200 customers, including residential and limited commercial users.

Pegram is also replacing its existing sand filter system, which has been in place since 1997 and has required multiple rebuilds. The town is transitioning to a new tank-based treatment system that allows for easier future expansion by adding additional tanks as needed.

“We’re putting a new type sewer plant in, instead of the sand filter that we’ve had since ’97,” Mayor Morehead said. “When you need to expand, you just add another tank.”

Engineering plans for the new plant have been completed, and much of the equipment has already been delivered. Construction is expected to begin soon, pending final scheduling by engineers and the construction company.

Funding for the project is being supported largely through grants. Tina Morehead said the town has received approximately $691,373 in grant funding from the Tennessee Department of Environment and Conservation, along with $603,000 in non-entitlement units American Rescue Plan Act (NEU ARPA) funds, to assist with land acquisition and system upgrades.

At this time, town officials say the project remains on budget and no extraordinary costs are expected to be passed on to sewer customers. Town officials budgeted $650,000 for a “sewer plant upgrade" in their 2026 budget.

“The Town’s approach throughout this process has been to leverage grant funding as much as possible in order to minimize the financial impact on sewer customers,” Tina Morehead said.

Town officials said they hope construction on the new sewer plant will be completed later this year.