Bill
HB 2667
Creates a regional public water and wastewater authority for Grundy County and nearby entities to plan, finance, and operate systems.
HB 2667 / SB 2730 Summary (Georgia: Tennessee, Session 114, Grundy County local approval required)
Overview
- Purpose: Creates the Southern Cumberland Plateau Regional Water and Wastewater Authority (the Authority), a new public regional utility entity intended to plan, build, operate, and finance water and wastewater systems for Grundy County and nearby municipalities/entities (Monteagle, Tracy City, Big Creek Utility District, Sewanee Utility District, and potential future members).
- Local approval: The act takes effect only if Grundy County voters (the legislative body) approve by a two-thirds vote. If approved, the Authority becomes a public corporation with broad powers to manage regional water and wastewater resources.
Geographic and organizational scope
- Participating entities explicitly named: Grundy County; Town of Monteagle; Town of Tracy City; Big Creek Utility District; Sewanee Utility District.
- Other municipalities or districts may join later; Board size and representation adjust accordingly (see Section 21).
Board of Commissioners
- Composition (initial): 5 members total.
- Grundy County Mayor (or designee)
- Mayor of Monteagle (or designee)
- Mayor of Tracy City (or designee)
- One Commissioner appointed by the Big Creek Utility District
- One Commissioner appointed by the Sewanee Utility District
- Vacancies: Filled by the respective appointing authorities.
- Terms:
- The first three seats (county and two mayors) serve concurrent terms with their appointing official’s term.
- The two utility-district seats serve four-year terms (except for replacements for unexpired terms).
- Quorum and governance: Majority constitute a quorum; actions require a majority of those present. Board elects a Chairman, Vice Chairman, and Secretary within 30 days of formation. Meetings must be open to the public.
Powers and authority
- General corporate powers: The Authority can sue/be sued, adopt bylaws, and hold a seal.
- Planning, acquisition, construction, operation: Can plan, acquire, construct, furnish, equip, extend, maintain, and operate one or more water and wastewater systems, including treatment, storage, distribution, and collection facilities.
- Transfers and intergovernmental arrangements: Can enter agreements to transfer systems, assume liabilities, or operate systems owned by Grundy County, Monteagle, Tracy City, Big Creek Utility District, Sewanee Utility District, or other municipalities.
- Property and debt: Can acquire real and personal property, operate systems, and issue bonds/notes. May bundle joint obligations with participating entities, and pledge revenues to secure those obligations.
- Revenue and rates: Can set rates, fees, tolls, and charges necessary to operate a self-sustaining system, including reserves and debt service.
- Financing: Authorized to issue bonds (up to 40-year maturities), issue notes/bond anticipation notes, and refund/refinance bonds. May receive grants or donations and pledge such revenues or gifts as security.
- Eminent domain: May condemn land/rights necessary to carry out its mission, subject to applicable law.
- Insurance and benefits: Can procure insurance, employee benefits, and establish pension/hospitalization plans through contracts with participating entities.
- Regulatory posture: The Authority is outside traditional public utility rate regulation by the Tennessee Public Utility Commission for its own rates; it remains subject to the Tennessee Board of Utility Regulation if applicable, and the Department of Environment and Conservation as a public water supply/sewer system.
Funding, rates, and security
- Rates: The Authority must set self-sustaining rates to cover operating expenses, debt service, reserves, and capital improvements.
- Debt: Can issue bonds/notes; bonds may be joint obligations with participating counties/cities/districts and may be secured by revenues, taxes, or other pledged assets.
- Tax status: Bonds and the Authority’s income are exempt from state and local taxes; the Authority itself is exempt from most taxes.
Taxation and regulation
- Tax status: The Authority and its assets, revenues, and bonds are exempt from state/county/municipal taxes (with usual exceptions such as inheritance/estate taxes).
- Regulation: The Authority is not subject to Tennessee Public Utility Commission rate regulation; it is subject to regulation by the Board of Utility Regulation (as applicable) and the Department of Environment and Conservation for water and sewer operations.
Dissolution and governance continuity
- Dissolution: The Board can dissolve the Authority once its purposes are accomplished and all liabilities are paid. Remaining assets are distributed to the contributing entities per SECTION 21 rules or per merger/transfer provisions.
- Continuity: The act contemplates ongoing operation, potential mergers, or transfers to other public entities.
Other notable provisions
- Collaboration with Utility Districts, Counties, and Cities: Utility Districts, Counties, and Cities may transfer systems, contribute funds, and contract with the Authority on various terms (up to 40-year agreements for purchase/sale of water, treatment, etc.).
- Board size adjustments: If new participating entities join, the Board may be expanded, keeping an odd number of seats; if expansion creates an even number, a seat is reorganized to preserve oddness.
Timeline and procedural notes
- Enactment requires two-thirds approval by Grundy County’s legislative body.
- Once approved, the Act becomes law and effective as provided in Section 25, with the governance and operations contingent on the Authority’s establishment and Board appointments.
Impact and who is affected
- Local governments and water/wastewater entities in Grundy County region stand to gain a centralized, regionally coordinated authority for water/wastewater planning, financing, and operation.
- Potential increases in capital projects efficiency, unified rate structures, and shared environmental and economic benefits.
- Tax-exempt status lowers financing costs for bonds/loans, benefiting project viability but shifting governance to a regional board with joint obligations.
Note: This summary captures the bill’s substantive provisions and potential effects based on the text you provided.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
