HF 2104

2nd Engrossment - 89th Legislature (2015 - 2016) Posted on 05/24/2016 03:58pm

A bill for an act
relating to the Metropolitan Council; regulating sewer availability charges
imposed on eating or drinking establishments that add or expand outdoor seating;
amending Minnesota Statutes 2014, section 473.517, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 473.517, subdivision 3, is amended to read:

Subd. 3.

Allocation of treatment, interceptor costs; reserved capacity.

(a)
In preparing each budget the council shall estimate the current costs of acquisition,
betterment, and debt service, only, of the treatment works in the metropolitan disposal
system which will not be used to total capacity during the budget year, and the percentage
of such capacity which will not be used, and shall deduct the same percentage of such
treatment works costs from the current costs allocated under subdivision 1. The council
shall also estimate the current costs of acquisition, betterment, and debt service, only,
of the interceptors in the metropolitan disposal system that will not be used to total
capacity during the budget year, shall estimate the percentage of the total capacity
that will not be used, and shall deduct the same percentage of interceptor costs from
the current costs allocated under subdivision 1. The total amount so deducted with
respect to all treatment works and interceptors in the system shall be allocated among
and paid by the respective local government units in the metropolitan area through a
metropolitan sewer availability charge for each new connection or increase in capacity
demand to the metropolitan disposal system within each local government unit. Amounts
collected through the metropolitan sewer availability charge (SAC) must be deposited in
the council's wastewater reserve capacity fund. Each fiscal year an amount from the
wastewater reserve capacity fund shall be transferred to the wastewater operating fund
for the reserved capacity costs described in this paragraph. For the purposes of this
subdivision, the amount transferred from the wastewater reserve capacity fund to the
wastewater operating fund shall be referred to as the "SAC transfer amount."

(b) If, after appropriate study and a public hearing, the council determines for the
next fiscal year that a reduction of the SAC transfer amount is necessary or desirable to
ensure adequate funds remain in the wastewater reserve capacity fund, based on a goal
of maintaining at least the next year's estimated SAC transfer amount in the wastewater
reserve capacity fund, the council may reduce the SAC transfer amount for that fiscal year.
If the council reduces the SAC transfer amount for the next fiscal year, the council must
then increase the metropolitan sewer availability charge not less than the greater of six
percent or the annual percentage change in the Consumer Price Index for the metropolitan
region for the previous year plus three percentage points. For the purposes of this
subdivision, any reduction in the SAC transfer amount shall be referred to as the "SAC
transfer deficit." The provisions of this paragraph expire at the end of calendar year 2015.

(c) The council will record on a cumulative basis the total SAC transfer deficit. In
any year that the wastewater reserve capacity fund has a year-end balance of at least two
years' estimated SAC transfer amount, the council shall increase the subsequent annual
SAC transfer amount in excess of the amount required by paragraph (a) with the goal
of eliminating the cumulative total SAC transfer deficit. The annual amount by which
the council increases the SAC transfer amount shall be determined by the council after
appropriate study and a public hearing.

new text begin (d) The council must not impose SAC on a local government unit for an existing
eating or drinking establishment due to an addition or expansion of outdoor seating unless
the establishment also increases the number of fixtures discharging into the sanitary sewer
system or increases the capacity of its sanitary sewer pipes connected to the system. If the
establishment increases the number of fixtures or capacity of its pipes, the charge must
be proportionate to the increase in demand on the sanitary sewer system. "Eating or
drinking establishments" include coffee shops, bars, restaurants, and similar businesses
that serve food or beverages to customers on site.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective for sewer
availability charges imposed on or after August 1, 2016. This section applies in the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end