HF 1747

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/07/2017 01:10pm

A bill for an act
relating to the Metropolitan Council; modifying the sewer availability charge;
requiring a report; amending Minnesota Statutes 2016, section 473.517, subdivision
3.

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

Section 1.

Minnesota Statutes 2016, 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 the 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, 2017, and applies in the counties of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 2. new text begin REPORT ON IMPACT OF SAC ON SMALL BUSINESS DEVELOPMENT.
new text end

new text begin The Metropolitan Council shall report to the legislative committees with jurisdiction
over the council, and as provided in Minnesota Statutes, section 3.195, by January 15, 2018,
on the impact of the council's sewer availability charges (SAC) on the ability of a variety
of small businesses in various locations in the metropolitan area to develop or expand. The
council shall consult with the commissioner of employment and economic development in
developing the study, determining what data available to the commissioner would be useful,
and how to collect any other data necessary or useful to the analysis. At a minimum, the
council must solicit from cities, business associations, and individual businesses data that
shows what percentage of initial costs a small business incurs is due to SAC imposed by
the council. "Initial costs" includes those costs incurred, whether paid or not, during the one
to two year period before opening. The report must also include how many businesses asked
for reduced SAC or deferment of payments and at what point in the process of developing
or expanding the business, how many received reductions, and in what amounts. The report
must identify specific changes to SAC that will reduce the burden on small businesses and
encourage their development and expansion, and how each option will affect other rate
payers. The report may include specific case studies of small business experience with SAC.
"Small business" has the meaning given in Minnesota Statutes, section 645.445.
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