What are the Responsibilities of your Water Utility’s
Board of Directors?

Your water utility is governed by a board of directors.  Do you know who they are, and what they do? Here are three things you might not know about who is serving on your water system’s board of directors.

• They are your neighbors:  Water Supply Associations are typically governed by people whose families drink the water every day.  They are elected by their fellow community members to serve on the water system board of directors.
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• They are volunteers: The board members are volunteers who devote their time and energy to providing a better quality of life for their community by ensuring a clean supply of drinking water. These individuals realize the importance of these services to the sustainability and public health of their communities.
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• They are ambassadors:  They are the public’s representative to help oversee the water system, and they are also the representative to tell the system’s story to the public.

Now you know a little more about who is governing your water system, but do you know what they actually do? The specifics may change based on the size of the system, but generally, here are things your water system’s board of directors are responsible for:

1. POLICY: The governing body’s major role is to develop policy, while leaving operations to the water system’s staff. However, in very small systems with part-time or volunteer staff, the board may help operate the system. Policies set by the board are the “how to” of running a utility and cover all aspects of the organization, varying in scope from rates and customer service polices to procurement policies to personnel policies.
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2. UNDERSTANDING REGULATIONS: There are many federal and state regulations and laws that affect your water and/or sewer system and how it does business. It is a responsibility of the water system’s board of directors to keep abreast of them and ensure the system and its business operations are in compliance.
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3. PLANNING: One of the board’s jobs is to look forward and try to best position the system for the future. Managing a water utility is expensive and extensive, so it is up to the board to determine goals and objectives and major ways to achieve them. This includes securing future water supplies, asset management, financial security, customer relations and recruiting for future board members, just to name a few.  Just like managing our personal finances and assets, water and sewer systems must be constantly planning for short-term and long-term needs.
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4. BUDGETS: The board approves the system’s annual budget and periodically reviews its progress to ensure the system is on track to meet its goals for the year. The budgeting process helps the board focus on the system’s mission, assess if planned expenditures are achieving the desired results, determine operational and capital spending, and highlight key measures of performance.
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5. MANAGEMENT: A water utility’s board of directors overseees the employees of the system. The board recruits, selects, compensates, appraises and appraises the utility manager’s and any office staff’s performance.
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6. MONITOR SYSTEM PERFORMANCE: The board of directors is not involved in the day-to-day operations of the water utility, but they do monitor the overall performance of the system. This information is gathered through monthly reports, customer feedback, and audits. The board uses this information to gauge the success of their short-range and long-range planning.
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7. MEETINGS: There are two major reasons for a board meeting—discussing and deciding on water system business. It is the board’s responsibility to set and post the agenda, and then conduct business openly, lawfully and ethically.
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8. EMERGENCY PREPAREDNESS: Man-made and natural disasters, along with everyday breakdowns of facilities and equipment, can drastically affect your water system’s ability to meet the customers’ needs. The board of directors is responsible for ensuring there are emergency plans in place to guide the system’s board and staff on what to do in a crisis.

Essentially, water utility boards are responsible for ensuring that their system is well staffed, well maintained, meets all state and federal requirements and is prepared to serve the current and future needs of the community. Your local water utility stands at the intersection of three major public policy areas: public health, environmental protection and local economic growth; and the board of directors must ensure that the utility successfully meets the demands of all three.