Page 11 - July-Aug 2021 Vol 39 No 2

treatment infrastructure, manage and generally align with the wide range of March 3, 2021.
treat stormwater or subsurface drainage projects that are eligible under the Clean b) Funds cannot be used to replenish or
water, facilitate water reuse, and secure Water or Drinking Water State Revolving make contributions to rainy day funds
publicly owned treatment works, among Fund list. or other reserve funds.
other uses. As long as funds are obligated by c) Funds cannot be used to pay interest,
Consistent with the Clean Water State December 31, 2024, the money is eligible principal, or costs on debt. This
Revolving Fund (CWSRF) and Drinking to be used for these projects, even if the includes long-term debt, short-term
Water State Revolving Fund (DWSRF), project isn’t complete at that time. The revenue or tax anticipation notes, or
Fiscal Recovery Funds may be used for period of actual performance for these fees or issuance costs associated with
cybersecurity needs to protect water or projects runs through Dec. 31, 2026. new debt. d) Funds cannot be deposited
sewer infrastructure, such as developing It’s important to keep in mind that any into a pension fund.
effective cybersecurity practices and capital improvements to utility systems, Conclusion
measures at drinking water storage and including pipes in the ground, pumping We encourage local governments
distribution facilities and wastewater stations, treatment plants, etc. will need and utility agencies to use this money
collection systems and publicly owned to be depreciated over time. Tennessee strategically to stabilize your communities
treatment works. utilities have a responsibility to fund that from the impacts of COVID and to
Many utility systems across Tennessee depreciation. Therefore, local utilities
are faced with aging infrastructure. This must be certain that rates are sufficient improve the water and wastewater
infrastructure that is so critical. It is
new money presents an opportunity to support both the depreciation and any important that every agency think and
to shore up some of those areas that, if other utility-related costs. plan strategically and develop an overall
left unfixed, could present a significant While this money can be used in a plan to use the money to benefit the
challenge to our local governments in the variety of ways, the federal guidance greatest number of citizens you can -
future. specifically mentions some unallowable before you spend this money.
Cities may want to fund utility uses. A few we want to bring to your
Remember, the Comptroller’s Office
improvements, and counties may want to attention are: always stands ready to assist you as we
pass funding through to their local utility a) Funds cannot be used to reimburse strive to make government work better.
districts. The state could also choose to use your government for expenses related Please contact us with any questions
a portion of its $3.8 billion in ARP funding to the public health emergency or its you have at ARP@cot.tn.gov or
to support water and sewer projects. negative economic impacts if they were 615.401.7841.
The types of projects that are eligible incurred by your government prior to

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