The Campbell County Utilities and Service Authority (the "Authority" or "CCUSA") was established on November 24, 1964 by resolution of the Board of Supervisors of Campbell County, Virginia (the "County) and was chartered by the Commonwealth of Virginia State Corporation Commission in December 1964 to provide water and sewer service to County residents as permitted under the Code of Virginia, 1950 as amended (The "Enabling Act").
The Enabling Act provides that the Authority is authorized, subject to the restrictions of the Authority's articles of incorporation, among other things:
To acquire, construct, improve, operate and maintain any water system or sewage disposal system
To issue revenue bonds of the Authority payable solely from revenues to pay all or any part of the cost of water system or sewage disposal system
To fix, revise, charge and collect rates, fees and charges for the use of and for the services furnished by any system operated by the Authority
To enter into contracts with any unit, including counties, cities and authorities, relating to the furnishing of services of any water system or sewage disposal system of the Authority.
The Enabling Act also provides that the Authority is subject in all respects to the jurisdiction of the Virginia State Water Control Board pursuant to the provisions of the State Water Control Law.
The Authority has determined that it is a related organization to Campbell County in accordance with Governmental Accounting Standards Board Statement 14. The Authority is a legally separate organization whose Board members are appointed by the Campbell County Board of Supervisors. Since the Board of Supervisors cannot impose its will on the Authority and since there is no potential financial benefit (or burden) in the relationship, the Board of Supervisors is not financially accountable for the Authority. Accordingly, the Authority is not considered a component unit of the County.