Board Responsibilities

The Wastewater Financing Board was originally created pursuant to Public Chapter 299 of 1987, later codified in Tennessee Code Annotated Sections 68-221-1007 et seq. The Board’s jurisdiction was broadened to include water systems, and the Board was renamed the Water and Wastewater Financing Board. The Board is created for the purpose of “furthering the legislative objective of self-supporting water systems and wastewater facilities in this state” and “to determine and ensure the financial integrity of certain water systems and wastewater facilities” under its jurisdiction. The Board is responsible for determining the financial, technical and managerial capacity of the systems to comply with the requirements of federal and state laws and has authority to require appropriate action by those systems to correct deficiencies found.

Board Characteristics

Nine members: seven appointed by the Governor for three year terms and two ex officio. Composed of one member representing municipalities; one member representing utility districts; one member representing municipal water utilities; one member representing water utility districts: one member representing environmental interests; one member representing manufacturing interests; and one member representing minority citizens of the state, who shall have experience in governmental finance and shall not otherwise be a state employee. One member shall be the Comptroller of the Treasury or his designee, who shall serve as board chairman, and one member shall be the Commissioner of Environment and Conservation or his designee.

Unacceptable Water Loss

In accordance with TCA 7-82-702 and 68-221-1009(a), the Utility Management Review Board and the Water and Wastewater Financing Board have set an excessive water loss percentage at 35%.  That means that any water system reporting a water loss of 35% or higher (using the current method) in its annual financial statements will be referred to the appropriate board for further action.  This determination was made at the joint meeting of the Boards held on October 7, 2010. 

The Boards also voted at the joint meeting on October 7, 2010 to adopt the American Water Works Association (AWWA) water loss methodology for any audited financial reports received by the Comptroller of the Treasury after January 1, 2013. Between now and January 1, 2013, audited financial statements may include both methods, but the current percentage method MUST be included for an statements received by the Comptroller before January 1, 2013.

All correspondence relating to the Water and Wastewater Financing Board should be directed to: