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.
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.
New Water Loss Information
At a joint meeting of the Water and Wastewater Financing Board and the Utility Management Review Board on June 6, 2012, the Boards decided to reaffirm the October 7, 2010, decision to adopt the American Water Works Association (AWWA) water loss methodology for inclusion in any audited financial statements received by the Comptroller of the Treasury on or after January 1, 2013. The water loss methodology can be obtained from www.AWWA.org
At the June 6, 2012, meeting the following was adopted by the Boards:
“Total annual cost of operating the water system” as used in the AWWA Free Water Audit Software is defined to include all costs for operation, maintenance, debt service (principal and interest) and depreciation. Remember this number is to include only expenses related to the WATER system – not the sewer system. The number can be obtained from the annual audited financial statements.
Failure to achieve the designated levels will result in a referral to the Board(s).
The requirements will be reviewed by the Boards annually to ensure the desired results are being achieved. The levels are subject to change by approval of the Board(s).
All correspondence relating to the Water and Wastewater Financing Board should be directed to: