Tennessee
Association of Utility Districts
E-mail Notification |
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| February 24, 2010 |
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Legislative Alert-Revised |
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Please replace the
last attachment sent with this one.
Dear Rural Water District:
The National League of Cities (NLC) is aggressively working to amend the 1926(b) Rural Development Loan protection, which forbids municipalities from serving customers inside the Utility District’s area during the term of a Rural Development Loan. They have hired lobbyists in Washington, D.C. just to work on this issue.
The amendments proposed by the NLC would limit 1926(b) protection to only that portion of the system that
is identified in the loan document as collateral for the district’s loan. Additionally, it would allow a city to
purchase the district’s Rural Development loan and extend service to new development arising after the loan is
purchased.
Attached is a Resolution that TAUD has adopted “Opposing” the municipals’ proposed Amendment to
1926(b). TAUD is asking each Utility District to participate by acting now.
TAUD is asking each Utility District to:
1.) Send a letter adopting the TAUD Resolution to both Tennessee U.S. Senators and its
U.S. Representative. A sample letter is attached.
2.) Attach a copy of the TAUD Resolution to each of your letters.
3.) Send the enclosed sample water customer letter to each of your members, and ask
each of them to also write to the U. S. Senators and their U. S. Representative asking them to
oppose any amendment to 1926(b).
4.) Fax or e‐mail your letters to assure timely delivery.
Please attempt to get a count of the number of letters sent by your members, so that TAUD can verify that
Congress is being inundated by concerned rural Tennesseans.
Thank you for your prompt participation in this very urgent and important matter.
Sincerely,
Bob Freudenthal
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