TGFOA 2017 Fall Conference. John Greer, Utilities Specialist Comptroller of the Treasury
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1 TGFOA 2017 Fall Conference John Greer, Utilities Specialist Comptroller of the Treasury October 12, 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 (251) Counties (12) Authorities (9) Water and Wastewater only
4 Water and Wastewater Financing Board 9 members 2 ex-officio 7 appointed by Governor All grand divisions of Tennessee represented
5 WARREN RUTHERFORD WILSON DAVIDSON WILLIAMSON ROBERTSON MONTGOMERY DICKSON STEWART HOUSTON HICKMAN HUMPHREYS COFFEE BEDFORD MAURY GILES LAWRENCE WAYNE LEWIS PERRY HARDIN HENDERSON HENRY WEAKLEY OBION DYER GIBSON MADISON HAYWOOD TIPTON FAYETTE SHELBY HARDEMAN CHESTER MCNAIRY CARROLL SUMNER MACON SMITH CLAY PUTNAM WHITE GRUNDY LINCOLN FRANKLIN MARION BLEDSOE CUMBERLAND OVERTON PICKETT FENTRESS MORGAN SCOTT CAMPBELL DEKALB UNION KNOX ROANE RHEA HAMILTON BRADLEY MCMINN POLK MONROE LOUDON BLOUNT SEVIER JEFFERSON HAWKINS CARTER GREENE COCKE JACKSON WWFB Member Locations
6 Members, Ex-Officio Comptroller Designee (Chair) Ann Butterworth TDEC Designee (Vice-Chair) Tom Moss
7 Appointed Members Two members representing utility districts Two members representing municipalities One minority member representing government finance One member representing manufacturing interest One member representing environmental interest
8 Appointed Members 3 year terms No compensation Can receive reimbursement for travel
9 Water and Wastewater Financing Board Purpose ( ) To correct financial losses Reasonable user rate increases (expense decreases) Negotiate consolidations Legislative Objective ( ) Self-supporting water and wastewater facilities Act for the public welfare of customers
10 Water and Wastewater Financing Board What gets an entity referred to the WWFB? Financial 2 years with a negative change in net position Hold that thought for a few more slides Deficit total net position Default on any debt instrument Water Loss Validity score of 75 or less or non-revenue water as a percent by cost of operating system of 20% or greater
11 Non-Revenue Water (not audited)
12 Without further Delay
13 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 (authorities must comply as well) New board member must get 12 hours of training within one year after initial appointment or election to the municipal utility s governing body
14 Legislation Update PC Municipal Utility Board Member Training 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
15 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
16 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
17 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 Failure to get the required training and continuing education may result in Imposition of reasonable sanctions by the WWFB Ineligibility for state revolving loan fund loans and grants
18 Legislation Update PC Extension of Utility 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
19 Legislation Update PC Extension of Utility 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
20 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
21 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
22 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, subject to removal
23 Legislation 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
24 Legislation 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
25
26 Questions?
27 27 Christin Lotz Assistant General Counsel Comptroller of the Treasury Suite 1700, James K. Polk Bldg. 505 Deaderick St. Nashville, TN Phone: (615) John Greer Utilities Specialist Comptroller of the Treasury Suite 1700, James K. Polk Bldg. 505 Deaderick St. Nashville, TN Phone: (615)
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