In allocating loan funds to municipalities, the department shall give consideration to, and apply, the following standards and criteria:

(1) The need and desirability for water to be supplied by the proposed waterworks construction;
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Terms Used In Tennessee Code 68-221-509

  • Construction: means the erection, building, acquisition, alteration, reconstruction, improvement or extension of waterworks, preliminary planning to determine the economic and engineering feasibility of waterworks, the engineering, architectural, legal, fiscal and economic investigations and studies, surveys, designs, plans, working drawings, specifications, procedures and other action necessary in the construction of waterworks, and the inspection and supervision of the construction of waterworks. See Tennessee Code 68-221-502
  • Department: means the department of environment and conservation. See Tennessee Code 68-221-502
  • Law: includes any act or statute, general, special or local, and the charter of any incorporated town or city or metropolitan government of this state. See Tennessee Code 68-221-502
  • Municipality: means any county, metropolitan government, incorporated town or city, or special district of this state empowered to provide water services, or any combination of two (2) or more of the foregoing acting jointly, in connection with an eligible project. See Tennessee Code 68-221-502
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Waterworks: includes all or any part of the following: source of supply, pumping facilities, purification works, collection and storage facilities and distribution system for water, together with all necessary parts and appurtenances for proper operation. See Tennessee Code 68-221-502
(2) The need for upgrading the quality of water of an existing waterworks;
(3) The ability of the municipality to secure borrowed money from other sources and costs thereof;
(4) If the purpose of the loan is to extend water service into an area outside the boundaries of incorporated towns and cities or special districts, the greater capability of another municipality to provide water in the area, if such other municipality is permitted by law to serve the area and will make a commitment satisfactory to the department to extend such service into the area;
(5) The enhancement of the economic development of the state, the region or the locality;
(6) The upgrading of the quality of life of the state, the region or the locality;
(7) The achievement of a political equity or balance across the state and between such diversities or interests as cities and counties, urban areas and rural areas, and grand divisions; and
(8) In the case of a special district, the financial stability of the district, and no funds shall be made available to a district when there is reason to believe that the funds may not be repaid.
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