Public Water Authorities
A "water authority" is a public body providing drinking water or wastewater service that is organized to take advantage of the tax-exempt capital markets available to public entities. Such an entity can them borrow tax-exempt funds for projects. A water authority may be created without previously having had any sort of corporate existance or may be converted from a nonprofit water association. Because most water authorities are created by conversion, the content below addresses conversions. For other information, please see Title XVII, Rules Govering Water Authorities.
The application for conversion to a water authority (WA) is actually a packet of items presented to the Arkansas Natural Resources Commission. The content of these items will depend on whether the proposed water authority is currently a nonprofit water association or an applicant not formally organized.
The application for conversion to a water authority by a nonprofit water association must contain the following information:
- The name and address of the proposed water authority.
- The number of directors on the board of the proposed water authority.
- The names and addresses of the initial board of directors for the proposed water authority.
- The name of the proposed water authority's agency for service of process.
- A resolution adopted by the WA's Board of Directors requesting the change to a waeter authority, containing the following:
- The water association desires to realize interest rate savings as a result of this conversion.
- The water association cannot directly access the tax-exempt capital markets other than through a conduit issuer.
- The water association was initially formed as a non-profit corporation.
- A copy of the water association's bylaws and the proposed new bylaws of the proposed water authority.
- A map showing the water association's existing geographic service area.
- A brief statement describing the existing water source.
- A statement and certification from the Secretary of State that the name of the proposed water authority is not identical to any other water authority.
- Certification of a vote of the membership approving conversion.
- A filing fee of $750.00 made out to ANRC.
- The Application must be signed by a majority of the Board of Directors of the WA
For more information regarding water authorities contact:
Dave Fenter, Grants Manager
Arkansas Natural Resources Commission
101 E. Capitol Ave., Suite 350
Little Rock, Arkansass 72201
Phone (501) 682-0543 Fax (501) 682-0561
Email at Dave.Fenter@arkansas.gov