KY-TN WEA. John Greer, Utilities Specialist Comptroller of the Treasury

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1 KY-TN WEA John Greer, Utilities Specialist Comptroller of the Treasury November 2, 2017

2 Introduction Water and Wastewater Financing Board (WWFB) Created in 1987 In 2007 moved administratively from Tennessee Department of Environment and Conservation (TDEC) to Comptroller of the Treasury (COT)

3 Water and Wastewater Financing Board Cities and Towns (251) Counties (12) Authorities (9) Water and Wastewater only

4 Introduction Utility Management Review Board (UMRB) Created in 1987 In 2007 moved administratively from Tennessee Department of Environment and Conservation (TDEC) to Comptroller of the Treasury (COT)

5 Utility Management Review Board Utility Districts (178) Water Wastewater Gas Fire

6 Both Boards 9 members 2 ex-officio 7 appointed by Governor All grand divisions of Tennessee represented

7 What do we do? Water and Wastewater Financing Board Purpose (TCA ) To correct financial losses Reasonable user rate increases (expense decreases) Negotiate consolidations Utility Management Review Board Legislative directive (TCA ) Act for the public welfare Carry out the General Assembly s intent that utility districts be operated as self-sufficient enterprises.

8 Legislation Update PC Municipal Utility Board Member Training Mandates training and continuing education for members of the governing body of a municipal water or sewer system subject to T.C.A Municipal utility system includes the system of any county or incorporated city or town of the state Water and wastewater authorities also included

9 Legislation Update PC Municipal Utility Board Member Training New board member must get 12 hours of training within one year after initial appointment or election to the municipal utility s governing body Incumbent board members must get 12 hours of training within one year after their re-appointment or re-election to the municipal utility s governing board after April 12, 2017

10 Legislation Update PC Municipal Utility Board Member Training Subjects include, but not limited to, Board governance Financial oversight Policy-making responsibilities Other topics reasonably related to board duties

11 Legislation Update PC Municipal Utility Board Member Training Training and continuing education offered by an association or organization must have its curriculum approved by the Comptroller s Office PRIOR TO USE In house trainings may be approved Budget Audit Ethics Other topics reasonably related to board duties

12 Legislation Update PC Municipal Utility Board Member Training After getting initial 12 hours of training, the board member must get 12 hours of training and continuing education every three years New continuing education period begins on January 1 of the following year Failure to get the required training and continuing education may result in Imposition of reasonable sanctions by the Boards Ineligibility for state revolving loan fund loans and grants

13 Legislation Update PC Extension of Municipal Official Training Deadlines Comptroller may grant a six month extension of training deadline Show reasonable, substantial compliance Must complete the full training required within six months extension for the relevant training period

14 Legislation Update PC Utility District Commissioner Training Clarification Penalty for not getting required training is ineligibility of utility commissioner to serve another term Clarifies that three year training and continuing education period considered for this penalty is last full period before a term ends If re-appointment occurs and did not meet requisite training before re-appointment, may be subject to removal

15 Legislation Update PC Extension of Utility District Official Training Deadlines Applies to utility district commissioners, water and wastewater authority board member and board members of governing bodies of municipal water and sewer systems Must file copies of extension requests and Comptroller s grant of extension request with UMRB for utility district commissioners and WWFB for board members of water and wastewater authorities and for board members of governing bodies of municipal utility systems

16 PC 118 Example Commissioner Water gets initial 12 hours of training on January 7, 2018 Commissioner Water s new Continuing Education Period starts on January 1, 2019 Commissioner Water MUST have 12 hours of training completed by January 1, 2022

17 PC 118 Example Elected City Commissioner Water misses training and fails to get an extension Commissioner Water s City is referred to the WWFB Appointed City Commissioner Water misses training and fails to get an extension Commissioner Water is ineligible to be appointed again EVER

18 Bonus Material Legislative Update PC Financially Distressed Provides that negative change in net position excludes grants or capital contributions Provides that change in net position means total revenues less all grants, capital contributions and expenses

19 Bonus Material Legislative Update PC Financially Distressed Applies to utility districts, water and wastewater authorities and municipal and county water and sewer systems Became effective April 17, 2017 Referrals to UMRB and WWFB made for any audits received after effective date

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21 John Greer Utilities Specialist Comptroller of the Treasury Suite 1700, James K. Polk Blgd. 505 Deaderick St. Nashville, TN Phone: (615)