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SB 2730

Grundy County - Subject to local approval, creates the Southern Cumberland Plateau Regional Water and Wastewater Authority. -

114th Regular Session (2025-2026) Introduced by Janice Bowling

Creates a regional water and wastewater authority for Grundy County, Monteagle, Tracy City, Big Creek and Sewanee districts to plan, finance, operate, and regulate systems.

Recalled from Senate Energy, Ag., & Natural Resources Committee
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Bill Summary · SB 2730

Summary of SB 2730 (Session 114, Tennessee) – Grundy County: Southern Cumberland Plateau Regional Water and Wastewater Authority

Note: The bill creates a new regional water and wastewater authority, subject to Grundy County local approval, with participation by Grundy County, the Towns of Monteagle and Tracy City, and two utility districts (Big Creek and Sewanee).

1) Purpose and Intent

  • Establishes the Southern Cumberland Plateau Regional Water and Wastewater Authority (the “Authority”).
  • Objectives include planning, acquiring, constructing, operating, and maintaining water and wastewater systems; developing regional water resources; and providing environmental services and economic benefits to the region.

2) Key Provisions and Changes

A. Definitions and Scope

  • Defines key terms: Authority, Board, Bonds, Notes, Cities (Monteagle and Tracy City), County (Grundy), Utilities (Big Creek Utility District and Sewanee Utility District), System (water and wastewater facilities and related infrastructure).

B. Governance: Board of Commissioners

  • The Authority is governed by a Board of Commissioners (the “Board”) with five voting members.
  • Initial allocation of seats:
    • Grundy County County Mayor (or designee)
    • Mayor of Monteagle (or designee)
    • Mayor of Tracy City (or designee)
    • One Commissioner appointed by each of the two Utility Districts (Big Creek and Sewanee)
  • If a new participating municipality is added later and the Board would have an even number of members, a Grundy County resident must fill the new seat to maintain a voting balance.
  • Vacancies filled by the respective appointing entities; terms align with the appointing official’s term or, for district seats, four-year terms (except unexpired terms).
  • Quorum requires a majority; Board can meet, appoint officers (Chair, Vice-Chair, Secretary), and operate openly with public meetings.

C. Powers and Operations

  • Broad authority to plan, purchase, construct, own, operate, and maintain one or more water and wastewater systems, inside or outside the County boundary as needed.
  • Power to enter into intergovernmental agreements with Grundy County, Monteagle, Tracy City, Big Creek Utility District, Sewanee Utility District, and other municipalities for transfers, operation, lease, or service arrangements.
  • Authority to acquire property and assume or refund existing debts of other systems; ensure revenue streams are sufficient to service debt.
  • Rate setting: Board may set and adjust rates, fees, tolls, and charges for services to ensure self-sufficiency and bond debt service.
  • Debt and financing: Authority can issue bonds, notes, and refunding bonds; may issue bond anticipation notes; eligible to obtain loans and grants; can pledge revenues and enter mortgages or security arrangements.
  • Eminent domain: Authority may condemn land or rights necessary to carry out purposes.
  • Contracts and procurement: Authority can contract with other governments, private entities, or the U.S. government as needed; adopt bylaws and purchasing rules (including procedures aligned with Utility District purchasing controls).
  • Insurance, pensions, and employee matters: Authority can hire staff (including a general manager) and procure insurance; may participate in benefit plans with collaborating jurisdictions.

D. Financing and Security

  • Bonds and notes are repayable from system revenues; joint obligations with participating counties or districts are possible.
  • Narratives describe security interests, liens, and the ability to pledge or mortgage portions of the Authority’s assets to secure debt.
  • Tax status: Bonds and Authority property revenues are exempt from state and local taxes (with standard exceptions).

E. Taxation and Regulation

  • The Authority’s assets and revenues are exempt from state and local taxes; bonds are treated as securities issued by a public instrumentality.
  • Regulatory oversight: Authority is exempt from Tennessee Public Utility Commission jurisdiction for rate regulation, but subject to the Tennessee Board of Utility Regulation and the Department of Environment and Conservation as applicable public water/sewer regulations.

F. Intergovernmental and Local Roles

  • Local entities (County, Monteagle, Tracy City, Big Creek and Sewanee Utility Districts) can transfer systems, grant easements, and enter into agreements to facilitate the Authority’s work.
  • Utility Districts and local governments may advance or lend funds to the Authority and participate in contracts related to water/wastewater services.

G. Dissolution and Oversight

  • Provides dissolution mechanism once purposes are accomplished and all obligations are paid; assets are distributed to participating entities.
  • Annual budgeting and audits required; copies of audits distributed to participating entities and governing bodies.

H. Changes in Board Size

  • If new eligible municipalities join, the Board may expand by a two-thirds vote; Board must remain odd-numbered; specific rules govern terms and replacement when seats are added or dissolved.

I. Local Approval Condition

  • The act has no effect unless Grundy County’s legislative body approves by a two-thirds vote. Upon approval, it becomes law; otherwise, it does not.

3) Who Would Be Affected

  • Grundy County government and residents
  • Town of Monteagle and Town of Tracy City residents and officials
  • Big Creek Utility District and Sewanee Utility District customers and boards
  • Existing water and wastewater systems within the participating jurisdictions
  • County and municipal finances through potential debt issuance and rate changes
  • State regulatory and environmental oversight for regional utilities

4) Procedural and Timeline Aspects

  • Local approval required: two-thirds vote by Grundy County’s legislative body (Section 24).
  • Action History indicates introduction and committee consideration in April 2026; no final enactment date is specified beyond legislative approval.
  • If approved, effective immediately as a law; otherwise, no effect.

This bill would create a new, multi-jurisdictional regional authority intended to streamline planning, financing, and operation of water and wastewater services across Grundy County and partner municipalities/districts.

Compiled from official sources — confirm details with the bill’s official record.

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