COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1449-01

Bill No.: SB 439

Subject: Sewer Districts: Services

Type: Original

Date: April 7, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on Other

State Funds

$0 $0 $0



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government (Unknown) (Unknown) (Unknown)




FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Natural Resources assume the proposed legislation would have no fiscal impact on their agency.



Officials from the City of Kansas City assume passage of this legislation will have a negative fiscal impact on Kansas City. The amount of the impact cannot be determined at this time.



Officials from the City of St. Joseph assume the proposal will result in court costs for litigation in the amount of $40,000 and costs for legal agreements in the amount of $25,000. The inability to annex some areas will result in additional losses.



Officials of the City of Fulton stated that this proposal would have no fiscal impact because the city has no competition. Officials assume large metropolitan areas could have fiscal impact.



Entities not responding include St. Louis Metropolitan Sewer District, Little Blue Valley Sewer District, and the Cities of Columbia, St. Charles, and Springfield





FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
$0 $0 $0



FISCAL IMPACT - Local Government FY 2004

(10 Mo.)

FY 2005 FY 2006
Cost to Municipalities
Litigation, Legal Agreements, (Unknown) (Unknown) (Unknown)



FISCAL IMPACT - Small Business



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



DESCRIPTION



This act provides that sewer districts shall constitute the sole and continuing authority for the provision of wastewater collection and treatment within the district's corporate boundaries. The act prohibits the encroachment on the boundaries of existing sewer districts, unless there is a written cooperative agreement between the districts. Whenever any part of a territory located in a sewer district is included by annexation within the corporate limits of a municipality, and the sewer district is currently or is capable of providing wastewater collection and treatment services, the district and the municipality shall enter a cooperative agreement to provide wastewater collection and treatment services to the annexed territory. For territories annexed prior to

August 28, 2003, the cooperative agreement may be developed within six months of

August 28, 2003. The cooperative agreements between the municipality and district shall be filed with the Recorder of Deeds and the County Clerk of the county or counties where the district is located.

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 Natural Resources

City of Fulton

Kansas City Manager's Office

City of St. Joseph



NOT RESPONDING:



Little Blue Valley Sewer District

St. Louis Metropolitan Sewer District

City of Springfield

City of Columbia

City of St. Charles



























Mickey Wilson, CPA

Director

April 7, 2003