(1) (a) By December 1, 2027, and every five (5) years thereafter, each provider shall obtain a rate study and capacity study.(b) (i) Rates shall adequately address costs for:1. Operation and maintenance;2. Debt service;3. Required reserves;4. Depreciation;5. Future capital expenses;6. An annual audit or agreed-upon procedures and compilation report; and7. Other expenses as necessary.(ii) 1. The rates recommended in the rate study that is obtained and chosen by the provider shall be implemented by the provider in the manner provided under the applicable law for modifying rates.2. Except with regard to required reserves, an increase in rates recommended in the rate study shall be implemented within one (1) year of the receipt of the rate study.3. If recommended rates increase the provider’s rates by fifty percent (50%) or more from the fiscal year before the rate study was completed, the provider may phase in the rate increase over a two-year period.
(a) By December 1, 2027, and every five (5) years thereafter, each provider shall obtain a rate study and capacity study.
(b) (i) Rates shall adequately address costs for:1. Operation and maintenance;2. Debt service;3. Required reserves;4. Depreciation;5. Future capital expenses;6. An annual audit or agreed-upon procedures and compilation report; and7. Other expenses as necessary.(ii) 1. The rates recommended in the rate study that is obtained and chosen by the provider shall be implemented by the provider in the manner provided under the applicable law for modifying rates.2. Except with regard to required reserves, an increase in rates recommended in the rate study shall be implemented within one (1) year of the receipt of the rate study.3. If recommended rates increase the provider’s rates by fifty percent (50%) or more from the fiscal year before the rate study was completed, the provider may phase in the rate increase over a two-year period.
(i) Rates shall adequately address costs for:1. Operation and maintenance;2. Debt service;3. Required reserves;4. Depreciation;5. Future capital expenses;6. An annual audit or agreed-upon procedures and compilation report; and7. Other expenses as necessary.
1. Operation and maintenance;
2. Debt service;
3. Required reserves;
4. Depreciation;
5. Future capital expenses;
6. An annual audit or agreed-upon procedures and compilation report; and
7. Other expenses as necessary.
(ii) 1. The rates recommended in the rate study that is obtained and chosen by the provider shall be implemented by the provider in the manner provided under the applicable law for modifying rates.2. Except with regard to required reserves, an increase in rates recommended in the rate study shall be implemented within one (1) year of the receipt of the rate study.3. If recommended rates increase the provider’s rates by fifty percent (50%) or more from the fiscal year before the rate study was completed, the provider may phase in the rate increase over a two-year period.
1. The rates recommended in the rate study that is obtained and chosen by the provider shall be implemented by the provider in the manner provided under the applicable law for modifying rates.
2. Except with regard to required reserves, an increase in rates recommended in the rate study shall be implemented within one (1) year of the receipt of the rate study.
3. If recommended rates increase the provider’s rates by fifty percent (50%) or more from the fiscal year before the rate study was completed, the provider may phase in the rate increase over a two-year period.
(2) By December 1, 2027, and every year thereafter, each provider shall develop an asset management plan to be reported to the committee. Plans should consider and account for, at minimum:(a) The age, location, condition and value of all physical assets;(b) Performance expectations for water quality, pressure and reliability;(c) Customer service standards;(d) Regular maintenance and replacement needs and activities;(e) Any maintenance schedules;(f) Procedures and associated costs;(g) Cost projections; and(h) Revenue strategies for the future.
(a) The age, location, condition and value of all physical assets;
(b) Performance expectations for water quality, pressure and reliability;
(c) Customer service standards;
(d) Regular maintenance and replacement needs and activities;
(e) Any maintenance schedules;
(f) Procedures and associated costs;
(g) Cost projections; and
(h) Revenue strategies for the future.
(3) By December 1, 2026, the committee shall promulgate rules and regulations concerning the requirements of the rate study, the capacity study and the asset management plan as described herein. The committee shall also determine an entity to provide guidelines for the rate study and capacity study to use as its basis.
(4) In order to effectuate the purposes of this chapter, the committee shall be authorized to hire three (3) employees to assist local providers with conducting the required rate and capacity studies, as well as with development of the required asset management plan. Subject to appropriation by the Legislature for such purpose, such employees shall be paid an annual salary via disbursement of Five Hundred Thousand Dollars ($500,000.00) made annually to the committee out of the Local Governments and Rural Water Systems Improvements Revolving Loan Fund as created in Section 41-3-16. Such monies shall be disbursed according to all requirements set forth in Section 41-3-16 and any other applicable provision of law.
(5) A provider shall deposit a minimum of five percent (5%) per annum of gross revenues in a dedicated refurbishment and replacement account within twelve (12) months of implementation of any rate described herein, unless a different amount is determined by a rate study or unless depreciation is being funded in the study.
(6) (a) The committee shall maintain an approved list of entities to conduct rate studies required by this section, including the Mississippi Rural Water Association, professional engineers, certified public accountants, economists and actuaries.(b) If a provider chooses an entity to conduct the rate study that is not on the approved list of entities, the entity is required to have conducted at least one (1) rate study in the state in the previous five-year period.
(a) The committee shall maintain an approved list of entities to conduct rate studies required by this section, including the Mississippi Rural Water Association, professional engineers, certified public accountants, economists and actuaries.
(b) If a provider chooses an entity to conduct the rate study that is not on the approved list of entities, the entity is required to have conducted at least one (1) rate study in the state in the previous five-year period.
(7) New providers seeking approval from the committee shall:(a) Demonstrate the ability to remain fiscally sustainable;(b) Complete a technical, financial and managerial capacity review conducted by the committee. The committee shall review the State Health Department’s technical, financial and managerial lists. Providers that receive a score of less than seventy (70) points shall be reported to the committee; and(c) The Chief Executive Officer of the Mississippi Rural Water Association may report any provider to the committee that it deems in violation of the Mississippi Nonprofit Corporation Act.
(a) Demonstrate the ability to remain fiscally sustainable;
(b) Complete a technical, financial and managerial capacity review conducted by the committee. The committee shall review the State Health Department’s technical, financial and managerial lists. Providers that receive a score of less than seventy (70) points shall be reported to the committee; and
(c) The Chief Executive Officer of the Mississippi Rural Water Association may report any provider to the committee that it deems in violation of the Mississippi Nonprofit Corporation Act.
(8) (a) A provider that plans to undertake a major development project shall obtain a rate study or amend the provider’s existing rate study before beginning the major development project to include consideration of the financial impact of the major development project on the fiscal sustainability of the provider.(b) As used in this subsection, “major development project” means a project that exceeds twenty percent (20%) of gross revenues of the provider for the immediately preceding fiscal year.
(a) A provider that plans to undertake a major development project shall obtain a rate study or amend the provider’s existing rate study before beginning the major development project to include consideration of the financial impact of the major development project on the fiscal sustainability of the provider.
(b) As used in this subsection, “major development project” means a project that exceeds twenty percent (20%) of gross revenues of the provider for the immediately preceding fiscal year.
(9) A provider shall file its most recent rate study annually with the State Auditor’s office at the same time the provider files its audit report or agreed-upon procedures and compilation report.
(10) (a) For the purposes of this section, a provider is in fiscal distress if the provider:(i) Fails to obtain a rate study as required under this section;(ii) Fails to implement a completed rate study as required under this section; or(iii) Has been found by the committee to be in significant noncompliance with the rules of the committee because of inadequate funds for operation and maintenance or inadequate compliance with rules of the committee.(b) The Mississippi State Department of Health shall maintain and publish on the department’s website a list of providers in fiscal distress and/or significant noncompliance.(c) The committee shall annually identify and notify a provider if the provider is in fiscal distress.(d) The provider may appeal the finding to the Circuit Courts of Hinds County, Madison County or Rankin County.
(a) For the purposes of this section, a provider is in fiscal distress if the provider:(i) Fails to obtain a rate study as required under this section;(ii) Fails to implement a completed rate study as required under this section; or(iii) Has been found by the committee to be in significant noncompliance with the rules of the committee because of inadequate funds for operation and maintenance or inadequate compliance with rules of the committee.
(i) Fails to obtain a rate study as required under this section;
(ii) Fails to implement a completed rate study as required under this section; or
(iii) Has been found by the committee to be in significant noncompliance with the rules of the committee because of inadequate funds for operation and maintenance or inadequate compliance with rules of the committee.
(b) The Mississippi State Department of Health shall maintain and publish on the department’s website a list of providers in fiscal distress and/or significant noncompliance.
(c) The committee shall annually identify and notify a provider if the provider is in fiscal distress.
(d) The provider may appeal the finding to the Circuit Courts of Hinds County, Madison County or Rankin County.
(11) (a) A provider found to be in fiscal distress shall file an improvement plan with the committee within ninety (90) days of a finding of fiscal distress. Such plan shall include, but is not limited to including, specific action to be taken to correct financial, technical and managerial deficiencies.(b) (i) Upon receipt of the improvement plan, the committee, or a party designated by the committee, shall review the improvement plan and:1. Approve the improvement plan in whole or in part;2. Modify the improvement plan; or3. Deny the improvement plan.(ii) At the time the committee determines that the provider is no longer in fiscal distress, the committee shall remove the fiscal distress designation and notify the provider.
(a) A provider found to be in fiscal distress shall file an improvement plan with the committee within ninety (90) days of a finding of fiscal distress. Such plan shall include, but is not limited to including, specific action to be taken to correct financial, technical and managerial deficiencies.
(b) (i) Upon receipt of the improvement plan, the committee, or a party designated by the committee, shall review the improvement plan and:1. Approve the improvement plan in whole or in part;2. Modify the improvement plan; or3. Deny the improvement plan.(ii) At the time the committee determines that the provider is no longer in fiscal distress, the committee shall remove the fiscal distress designation and notify the provider.
(i) Upon receipt of the improvement plan, the committee, or a party designated by the committee, shall review the improvement plan and:1. Approve the improvement plan in whole or in part;2. Modify the improvement plan; or3. Deny the improvement plan.
1. Approve the improvement plan in whole or in part;
2. Modify the improvement plan; or
3. Deny the improvement plan.
(ii) At the time the committee determines that the provider is no longer in fiscal distress, the committee shall remove the fiscal distress designation and notify the provider.
(12) If a provider is found to be in fiscal distress, the provider shall not receive state financial assistance for water operations until an improvement plan that has been approved by the committee is in place, unless the financial assistance is immediately necessary to ensure preservation of the public peace, health and safety, as determined by the committee.
(13) If the provider is found to be in fiscal distress, the provider shall obtain written authorization from the committee prior to:(a) Incurring additional debt;(b) Accepting assistance for the refurbishment or replacement of facilities or construction of facilities not within the provider’s improvement plan; or(c) Transferring assets to another entity.
(a) Incurring additional debt;
(b) Accepting assistance for the refurbishment or replacement of facilities or construction of facilities not within the provider’s improvement plan; or
(c) Transferring assets to another entity.
(14) If a provider is found to be in fiscal distress and the board of such provider is nonfunctional, the committee shall direct the Mississippi Rural Water Association, in conjunction with the Mississippi Department of Health and the Secretary of State, to use all laws available, including the Mississippi Nonprofit Corporation Act, to remove or replace such board or board members.