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Legal Issues for Water and Sewer Operations

Reference Number: MTAS-847
Reviewed Date: 03/28/2023

Legal Issues for Financially Distressed City-Owned Water and Wastewater Systems.
T.C.A. § 68-221-1007 provides for state intervention into the financial affairs of city-owned water and wastewater systems who are operating with continuous financial losses. The Tennessee Comptroller has established a Board to ensure that systems operate on a sound financial basis. Bond covenants and local legal requirements, such as inter-local contracts, must be considered as well.