HF 2949

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 03/15/2010 01:17pm

A bill for an act
relating to metropolitan government; modifying provisions for the allocation of
treatment works and interceptors reserved capacity costs; amending Minnesota
Statutes 2008, section 473.517, subdivision 3.

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

Section 1.

Minnesota Statutes 2008, section 473.517, subdivision 3, is amended to read:

Subd. 3.

Allocation of treatment, interceptor costs; reserved capacity.

new text begin (a)
new text end 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 deleted text begin for which system capacity unused each
year is reserved for future use, in proportion to the amounts of such capacity reserved for
each of them. deleted text end new text begin 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."
new text end

new text begin (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.
new text end

new text begin (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 end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
Washington.
new text end