This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0405 - Allows the creation of a Metropolitan Park District
SB 405 - Fiscal Note

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1723-04

BILL NO.: HCS for SCS for SB 405

SUBJECT: Local Governments: Parks and Recreation

TYPE: Original

DATE: April 19, 1999


FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED FY 2000 FY 2001 FY 2002
None $0 $0 $0
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED FY 2000 FY 2001 FY 2002
None $0 $0 $0
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED FY 2000 FY 2001 FY 2002
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 5 pages.



FISCAL ANALYSIS

ASSUMPTION

In response to identical legislation (FN# 1147-01), officials of the Department of Transportation and the Department of Conservation assume this proposal would not fiscally impact their departments.

Officials of the Department of Revenue (DOR) assume that they would not be responsible for collection of the sales tax associated with this proposal, therefore DOR is showing a zero fiscal impact.

Department of Natural Resources (DNR) officials assume no state fiscal impact.

Officials of the City of St. Louis assume no fiscal impact.

Officials of St. Louis County estimate that 1/10 of 1% sales tax would generate in St. Louis County $13,000,000 annually. Officials estimate that of the $13 million, $6.5 million would go to the Metropolitan Park and Recreation Fund , $3.9 million would go to the county park system and $2.6 million would go to municipal park systems within St. Louis County.

Official of the Cities of Maryland Heights and University City assume if their cities would apply for and receive park funds then there would be positive fiscal impact. Officials assume no fiscal impact.

Oversight assumes this proposal is permissive and would have no fiscal impact without voter approval.

Oversight will show income and costs as unknown because more than one county could belong to the Metropolitan Park and Recreation District, which would increase the income and costs for the district.



FISCAL IMPACT - State Government FY 2000 FY 2001 FY 2002
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Local Government FY 2000 FY 2001 FY 2002
(10 Mo.)
CITIES AND COUNTIES
Income - Cities and Counties
From sales tax of one-tenth of 1% (50%) Unknown Unknown Unknown
Cost - Cities and Counties
For operation and administration of a
Park system (Unknown) (Unknown) (Unknown)

ESTIMATED NET EFFECT TO

CITIES AND COUNTIES* $0 $0 $0
* Oversight assumes Districts annual costs would not exceed the annual income, resulting in either an annual zero fiscal impact or a positive fund balance.
METROPOLITAN PARK AND
RECREATION FUND
Income - Metropolitan Park Fund
From sales tax of one-tenth of 1 percent Unknown Unknown Unknown
(50%)
Cost - Metropolitan Park Fund
For operation and administration of a
Park system (Unknown) (Unknown) (Unknown)

ESTIMATED NET EFFECT TO

METROPOLITAN PARK AND
RECREATIONAL FUND * $0 $0 $0
* Oversight assumes Districts annual costs would not exceed the annual income, resulting in either an annual zero fiscal impact or a positive fund balance.
FISCAL IMPACT - Local Government FY 2000 FY 2001 FY 2002
(continued) (10 Mo.)
REGIONAL RECREATIONAL DISTRICT
Income - Regional Recreational District
From sales tax (not to exceed ½ of 1 percent) Unknown Unknown Unknown
Cost - Regional Recreational District
For establishment, operation, and (Unknown) (Unknown) (Unknown)
administration of a park system

ESTIMATED NET EFFECT TO

REGIONAL RECREATIONAL DISTRICT * $0 $0 $0
* Oversight assumes Districts annual costs would not exceed the annual income, resulting in either an annual zero fiscal impact or a positive fund balance.
FISCAL IMPACT - Small Business
Small Businesses that would be located within a Metropolitan Recreational District or a Regional Recreational District which has received voter approval to impose a sales tax would have added
duties and costs of collection and administration of the sales tax.



DESCRIPTION

This proposal allows the creation of a Metropolitan Park and Recreation District. The creation of the district is limited to within St. Louis County, and surrounding counties within the standard metropolitan statistical area. Establishment of the district is permissive, and subject to voter approval. The powers and establishment of other recreation and park systems shall not be effected by this act. The primary duty of the district is the development, operation and maintenance of a public system of interconnecting trails and parks throughout the counties comprising the district. Parks controlled by a district in St. Charles County shall have its daily operations controlled by the parks department instead of the district.

A one-tenth of one cent sales tax is authorized, subject to voter approval, and may be imposed by any county within the district. Ballot language and voting procedures are set forth in the act. Fifty percent of the tax goes to the metropolitan park and recreational fund. The other fifty percent is returned to the source county for park purposes, with forty percent of that half being distributed to municipalities via grants.

DESCRIPTION (continued)

Appointment procedures by the county executive, qualifications and powers of the board of directors for the district are also set forth in the act. Board members have exclusive control over expenditures of the metropolitan park and recreation fund, and over supervision, improvement, care and custody of the parks and facilities owned or maintained by the district.

The district has the authority to: issue bonds, notes and other obligations; contract; own, lease, purchase or sell rights in land; collect fees for the use of facilities; and maintain an office and staff. Language governing the issuance of bonds and obligations is included.

REGIONAL RECREATIONAL DISTRICTS

Current law authorizing regional recreational districts is changed to exclude St. Louis County, St. Charles County, St. Louis City and Jefferson County. However, existing regional recreational districts are allowed to continue, with their current powers and obligations.

Changes to regional district law also include the authority of areas to join onto existing regional districts, subject to voter approval. When a regional district involves more than one county, provisions are set forth to appoint board members similar to the provisions used for metropolitan districts. This act also grants the board of the regional district the authority to issue bonds and obligations, with provisions similar to those in a metropolitan district. A one-half of one cent sales tax is authorized, subject to voter approval, and may be imposed only by whole counties within the district. Ballot language and voting procedures are set forth in the act.

This legislation is not federally mandated, would not duplicate any other program and would

not require additional capitol improvements or rental space.

SOURCES OF INFORMATION

Department of Conservation

Department of Transportation

Department of Revenue

City of St. Louis

St. Louis County



Jeanne Jarrett, CPA

Director

April 19, 1999