SB 0613 - Fiscal Note

Fiscal Note - SB 0613 - Fee for repairs of leaking water service lateral lines in St. Louis County

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2745-04

BILL NO. HCS for SCS for SB 613

SUBJECT: Counties: St. Louis County, Water Districts

TYPE: Original

DATE: May 7, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Highway or Road	$0 to $262,500	$0 to $270,375	$0 to $278,486
Total Estimated Net Effect on All State Funds	$0 to $262,500	$0 to $270,375	$0 to $278,486

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government*	$0 to Unknown	$0 to Unknown	$0 to Unknown

*revenues due to enactment would be expected to exceed costs

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 5 pages.

FISCAL ANALYSIS

ASSUMPTION

Section; 66.405

Officials of the Missouri Department of Transportation (MoDOT) assume this legislation would allow MoDOT to terminate it's policy of paying for water service line relocation costs due to commission projects if St. Louis County would enact the provisions of this proposal.

Approximately 150 service lines are relocated annually with an average cost of $1,750 each. Officials assume that this proposal would result in costs savings to MoDOT. Officials estimate savings in FY99 at $262,500; FY2000 $270,375; and $278,486 in FY2001.

Officials of the City of St. Ann stated that the Board of Aldermen in 1997 approved an ordinance, after voter approval, to assess an annual fee of $28.00 on certain residential property for the purpose of sewer line repair. Officials assume no fiscal impact.

Officials of St. Louis County-Department of Highways and Traffic assume that if the voters of St. Louis County would approve the collection of a fee for water line repairs replacement, or relocation would require 1 new inspector plus a car for the purpose of inspection. Officials assume the Department of Revenue could require some additional administrative duties.

Officials estimate annual costs of $58,700 and estimate annual revenues that would be collected from a sewer line fee at $3,850,000.

St. Louis County officials stated if the legislation were enacted by the county council and approved by the county voters there would be fiscal impact. Officials assume there would be programming changes which are estimated to cost $80,800.

Oversight assumes this proposal to be permissive and would have no fiscal impact to St. Louis county unless the County's Council would receive voter approval to adopt the provision contained in this proposal. Oversight assumes that annual costs would not exceed annual income.

Oversight assumes MoDOT would only realize savings if St. Louis County were to enact the provisions contained in this proposal.

ASSUMPTION (continued)

Sections; 66.410, 66.415, and 66.420:

Officials of the Department of Economic Development (DED) - Public Service Commission (PSC) assume no fiscal impact.

Officials of the Department of Natural Resources (DNR) assume no fiscal impact.

Kansas City officials stated that currently commercial accounts are not in interest bearing accounts with accrued interest being paid to the commercial entity.

Oversight assumes no fiscal impact since Kansas City does not currently earn interest on commercial accounts.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
Savings to Highway Fund or
Road Fund
From sewer line relocation
expense
(section: 66.405)	$0 to	$0 to	$0 to
	$262,500	$270,375	$278,486
ESTIMATED NET EFFECT
HIGHWAY OR ROAD FUND	$0 to	$0 to	$0 to
	$262,500	$270,375	$278,486
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
Special Water Repair Fund
Income to Certain Local Governments
from water fee not to exceed $1.00 per month
(section 66.405)	$0 to	$0 to	$0 to
	Unknown	Unknown	Unknown
Cost to Certain Local Governments
for water service line repairs	$0 to	$0 to	$0 to
	(Unknown)	(Unknown)	(Unknown)
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
(continued)
ESTIMATED NET EFFECT TO
CERTAIN LOCAL GOVERNMENTS	$0 to	$0 to	$0 to Unknown*Unknown*Unknown*
*Oversight assumes annual costs would not exceed income resulting with a net zero or positive fund balance.

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

With voter approval, certain first class counties, currently including St. Louis County, may impose a fee not to exceed one dollar per month upon water service lines providing water service to residential property having four or fewer dwelling units to fund repairs of such lines.

A water service line shall not extend further than from the water mains to the first connection or joint beyond the point of entry into the premises and shall not include the water meter or any facilities owned by the utility.

The funds collected shall be deposited in a special account and used only for paying for the costs of water service line repairs and, if funds are available, paying the costs of service line repair, replacement or relocation made necessary by public right-of-way improvements.

The county may contract with any provider of water service to bill and collect the fees. The county may establish regulations for the administration of the program. The county may contract to administer any part of the program.

This proposal would require the governing body of any first class county with a population of over nine-hundred thousand that assesses a fee pursuant to section 66.405 to, for a period of 3 years, submit a complete financial report to the General Assembly .

All public water supply districts, water corporations subject to Public Service Commission jurisdiction, and municipality owned utilities selling and distributing water within any city with a population greater than four-hundred thousand and is located in more than one county would place in an interest bearing account all deposits paid to the water supplier by a commercial entity to receive water service. After the first year the water supplier would annually pay all interest DESCRIPTION (continued)

earned on the commercial entity's deposit to the commercial entity.

This proposal would exempt any nonprofit water company from regulation by the Public Service Commission.

Any existing water corporation that elects to convert to a nonprofit corporation would contribute one thousand dollars per residential unit up to a maximum of fifty thousand dollars, to the nonprofit corporation to be used to maintain or improve water facilities.

This act contains an emergency clause.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Department of Economic Development-Public Service Commission

Missouri Department of Transportation

City of St. Ann

St. Louis County-Department of Highways and Traffic

Department of Natural Resources

Kansas City

Jeanne Jarrett, CPA

Director

May 7, 1998