HF 2949

1st Committee Engrossment - 86th Legislature (2009 - 2010) Posted on 03/19/2013 07:29pm

1.1A bill for an act

1.2relating to metropolitan government; modifying provisions for the allocation of
1.3treatment works and interceptors reserved capacity costs;amending Minnesota
1.4Statutes 2008, section 473.517, subdivision 3.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2008, section 473.517, subdivision 3, is amended to read:
1.7    Subd. 3. Allocation of treatment, interceptor costs; reserved capacity. (a)
1.8In preparing each budget the council shall estimate the current costs of acquisition,
1.9betterment, and debt service, only, of the treatment works in the metropolitan disposal
1.10system which will not be used to total capacity during the budget year, and the percentage
1.11of such capacity which will not be used, and shall deduct the same percentage of such
1.12treatment works costs from the current costs allocated under subdivision 1. The council
1.13shall also estimate the current costs of acquisition, betterment, and debt service, only, of
1.14the interceptors in the metropolitan disposal system that will not be used to total capacity
1.15during the budget year, shall estimate the percentage of the total capacity that will not be
1.16used, and shall deduct the same percentage of interceptor costs from the current costs
1.17allocated under subdivision 1. The total amount so deducted with respect to all treatment
1.18works and interceptors in the system shall be allocated among and paid by the respective
1.19local government units in the metropolitan area for which system capacity unused each
1.20year is reserved for future use, in proportion to the amounts of such capacity reserved for
1.21each of them. through a metropolitan sewer availability charge for each new connection
1.22or increase in capacity demand to the metropolitan disposal system within each local
1.23government unit. Amounts collected through the metropolitan sewer availability charge
1.24(SAC) must be deposited in the council's wastewater reserve capacity fund. Each fiscal
2.1year an amount from the wastewater reserve capacity fund shall be transferred to the
2.2wastewater operating fund for the reserved capacity costs described in this paragraph. For
2.3the purposes of this subdivision, the amount transferred from the wastewater reserve
2.4capacity fund to the wastewater operating fund shall be referred to as the "SAC transfer
2.5amount."
2.6(b) If, after appropriate study and a public hearing, the council determines for the
2.7next fiscal year that a reduction of the SAC transfer amount is necessary or desirable to
2.8ensure adequate funds remain in the wastewater reserve capacity fund, based on a goal
2.9of maintaining at least the next year's estimated SAC transfer amount in the wastewater
2.10reserve capacity fund, the council may reduce the SAC transfer amount for that fiscal year.
2.11If the council reduces the SAC transfer amount for the next fiscal year, the council must
2.12then increase the metropolitan sewer availability charge not less than the greater of six
2.13percent or the annual percentage change in the Consumer Price Index for the metropolitan
2.14region for the previous year plus three percentage points. For the purposes of this
2.15subdivision, any reduction in the SAC transfer amount shall be referred to as the "SAC
2.16transfer deficit." The provisions of this paragraph expire at the end of calendar year 2015.
2.17(c) The council will record on a cumulative basis the total SAC transfer deficit. In
2.18any year that the wastewater reserve capacity fund has a year-end balance of at least two
2.19years' estimated SAC transfer amount, the council shall increase the subsequent annual
2.20SAC transfer amount in excess of the amount required by paragraph (a) with the goal
2.21of eliminating the cumulative total SAC transfer deficit. The annual amount by which
2.22the council increases the SAC transfer amount shall be determined by the council after
2.23appropriate study and a public hearing.
2.24EFFECTIVE DATE.This section is effective the day following final enactment
2.25and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
2.26Washington.