Regional authority would manage water and wastewater systems

The law establishes a public authority to plan, acquire, build, and operate water and wastewater systems. The authority may work within or beyond Grundy County, Monteagle, Tracy City, and the Big Creek and Sewanee utility districts. The act has no effect unless Grundy County's legislative body approves it by a two-thirds vote. For purposes other than approval or rejection, the act takes effect as provided in the county approval section.

A five-member board governs the authority, with one representative each for Grundy County, Monteagle, Tracy City, Big Creek Utility District, and Sewanee Utility District. The board represents the county, the two towns, and the two utility districts; a municipality that contracts with the authority may qualify for a seat. Another municipality that contracts with the authority may qualify for a seat, but the board decides whether to add one by a two-thirds vote and must keep an odd number of members. The county and town representatives serve terms tied to their elected leaders. Utility district commissioners serve four-year terms.

The authority may borrow money and issue bonds, and its board must set service charges high enough to keep each system self-supporting. These rules apply to the authority's water and wastewater systems and to any local government that chooses to back its debt. The authority may pledge system revenues or property to secure borrowing. A local government's debt guarantee requires approval by its governing body and advance public notice; local governments are not liable for the authority's debt unless authorized. The board must revise rates when needed to keep each system self-supporting.