This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0837 - Authorization of water pollution bonds
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 3502-01
BILL NO. SB 837
SUBJECT: Bonds: Natural Resources
TYPE: Original
DATE: February 11, 1998
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 General Revenue
($1,627,215)
($1,479,415)
($1,479,716)
Total Estimated
($1,627,215)
($1,479,415)
($1,479,716)
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| None | $0 | $0 | $0 |
| 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 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials of the Office of Administration - Division of Accounting (OA) indicate that the bond issue date would depend on the use of available bond proceeds from bonds authorized but not yet issued. OA officials assume a single bond sale, 25-year maturities, 8.5% interest rate, level debt service, and annualized costs based on a sale in fiscal year 1999. Based on these factors, annual debt service would approximate $1,465,675.
OA officials also assume that one-time costs per issue would include personal services of .06 Director, .12 Assistant Director, .12 Accounting Analyst IV, .17 Accounting Analyst II, and .04 Clerk Typist III plus fringe benefits for total one-time personnel costs of $30,548. One-time costs would also include issuance costs, including costs of financial advisor, legal counsel, printing, rating agency fees, official statements, etc. at a total cost of $150,000. Total one-time costs for FY 1998 would be $180,548.
Oversight assumes that the one-time personal services noted above would be performed by existing staff, with no increased costs to OA for those services.
OA officials also request that .25 Executive Assistant be hired to initiate general revenue transfers to the appropriate debt service funds, reconcile all paying agent transactions for principal and interest, and monitor all fees due to the paying agent. Total costs for this position, including fringe benefits, equipment and expense would be $9,540 in FY 1999, $11,740 in FY 2000, and $12,401 in FY 2001. Paying agent fees are expected to approximate $2,000 each year.
There would be no direct fiscal impact to the Department of Natural Resources (DNR). Funds would be used as follows: $12 million for the State Revolving Fund (SRF) (20% match required to receive federal funds) and $3 million for the 40% State Construction Grant Program for those economically disadvantaged communities that do not qualify for the SRF loan program.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| GENERAL REVENUE FUND | |||
| Cost-Office of Administration | |||
| Personal service (.25 FTE) | ($6,588) | ($8,103) | ($8,306) |
| Fringe benefits | (1,846) | (2,271) | (2,328) |
| Equipment and expense | (1,106) | (1,366) | (1,407) |
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (continued) | (10 Mo.) | ||
| GENERAL REVENUE FUND (continued) | |||
| Paying agent fees | (2,000) | (2,000) | (2,000) |
| Cost of issuance | (150,000) | 0 | 0 |
| Transfer to principal & interest sinking fund | (1,465,675) | (1,465,675) | (1,465,675) |
|
ESTIMATED NET EFFECT ON | |||
| GENERAL REVENUE FUND | ($1,627,215) | ($1,479,415) | ($1,479,716) |
| Total cost for bond redemption and interest over the life of the bond issues would be approximately $36,641,881. | |||
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| 0 | 0 | 0 | |
| FISCAL IMPACT - Small Business | |||
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
The proposal would authorize the issuance of $15 million in bonds for the purpose of water pollution control.
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
Office of Administration - Division of Accounting
Department of Natural Resources
Jeanne Jarrett, CPA
Director
February 11, 1998