PA 07-154—sHB 6856
Environment Committee
Planning and Development Committee
Finance, Revenue and Bonding Committee
AN ACT CONCERNING A MUNICIPAL STORMWATER AUTHORITY PILOT PROGRAM, SPECIAL SERVICES DISTRICTS, CLEAN WATER FUND DISBURSEMENTS AND THE DEFINITION OF UNIMPROVED LAND FOR TAX PURPOSES
SUMMARY: This act requires the Department of Environmental Protection (DEP) commissioner to create a municipal stormwater authority pilot program in up to four municipalities adjoining Long Island Sound by September 1, 2007, and authorizes her to provide up to $1 million in grants to the participating towns. Each stormwater authority may adopt regulations to implement a stormwater management program and may, with the commissioner's approval, enter into contracts with any municipal or regional entity to accomplish its purposes.
It defines unimproved land, for purposes of the commercial real estate conveyance tax, as farm, forest, or open space. (The conveyance tax applies to real property transfers for $2,000 or more, with several exceptions. The seller pays the tax. The conveyance of commercial real estate is taxed at a rate of 1% of the sale price. Unimproved land is taxed at a 0. 5% rate. ) The act does not limit farm, forest, or open space land to property considered as such in the “490” program or require that it continue to be used as farm, forest, or open space land after it is conveyed. It is also unclear how this provision relates to the 490 program's conveyance tax penalty (see BACKGROUND).
By law, regional water pollution control authorities finance their water pollution control projects with a combination of grants and loans from the Clean Water Fund. Under prior law, starting in FY 07, eligible projects could receive only loans, and not grants. The act repeals this provision, allowing regional authorities to continue to receive project grants.
Finally, it extends the length of time in which a special services district must repay its debt obligations from one to seven years after it incurs them.
EFFECTIVE DATE: Upon passage, except that a reporting requirement for municipalities in the pilot program and the special services district provision taken effect September 1, 2007, and the conveyance tax provision takes effect July 1, 2007.
MUNICIPAL STORMWATER AUTHORITY PILOT PROGRAM
Eligibility Criteria
The act establishes population criteria that four priority municipalities must meet to participate in the program, and allows other, non-priority municipalities to apply if a priority town chooses not to participate.
Priority Municipalities. To qualify as a priority municipality, a town must border Long Island Sound and have a population, according to the most recent Register and Manual, of between (1) 18,000 and 18,500, (2) 26,000 and 26,500, (3) 84,000 and 84,500, or (4) 125,000 and 125,500. According to the 2006 Register and Manual, four municipalities meet the act's geographic and demographic criteria: Stonington, New London, Norwalk, and New Haven. Municipalities meeting these criteria that wish to participate must apply, on forms the commissioner prescribes, by September 15, 2007. A municipality that fails to submit a timely application waives its right to apply for a grant. If the commissioner rejects an application she deems incomplete, the applicant has 15 days to correct any defects. If the commissioner is not satisfied with the town's application, she must consider the town a non-priority applicant.
Non-priority Municipalities. If any priority town waives its right to apply, any other town may apply that is complying with permit requirements for stormwater discharge from, or associated with, a separate storm sewer system it owns or operates. Under the act, a separate storm sewer system includes roads with drainage systems, streets, catch basins, curbs, gutters, ditches, man-made channels, or storm drains that discharge into state waters.
The commissioner must review timely applications from non-priority towns in the order she receives them. In choosing a non-priority town to participate, she must consider (1) its proximity to Long Island Sound or other major rivers or water bodies and (2) whether its inclusion will result in a diverse representation of urban and suburban areas.
Each town chosen to participate in the pilot program must submit a stormwater management program for the commissioner's approval. The program must include an estimate of the operational and capital expenses and income required to implement the plan over five years, and other elements the commissioner prescribes.
Grants
The commissioner may authorize up to $1 million in grants for the pilot program from any Clean Water Fund account, to the extent bond funds are available (see BACKGROUND). Towns may use the grants to reimburse up to 80% of the planning, engineering, and legal costs associated with creating a stormwater authority and developing a stormwater program. But the grants cannot be used to reimburse towns for costs associated with their program applications. The commissioner can use money from the fund to pay reasonable administrative costs.
Stormwater Authorities
The act allows the legislative body of a municipality participating in the pilot program to adopt an ordinance designating an existing board or commission as the stormwater authority, or to create a new authority. If a town creates a new authority, it must, by ordinance, decide:
1. the number of members;
2. their compensation, if any;
3. whether they are elected or appointed;
4. if appointed, the method of their appointment;
5. the method of removal; and
6. their terms of office. No more than half the members' terms may expire in any one year.
Stormwater Management Program
The authority must develop a stormwater management program. It must include provisions for (1) construction and post-construction site stormwater runoff control, including control detention and prevention of stormwater runoff from development sites or (2) controlling and abating pollution from existing land uses, and detecting and eliminating connections to the stormwater system that threaten the public health, welfare, or the environment. It must also (1) provide public education and outreach relating to stormwater management activities and establish procedures for public participation; (2) administer the program; (3) set boundaries for the stormwater authority district; and (4) recommend to the town's legislative body a levy on taxable real property in the stormwater district to permit the authority to plan, lay out, acquire, construct, reconstruct, repair, maintain, supervise, and manage stormwater control systems.
Assessment of Fees
The authority may levy fees on property owners to achieve its purposes. In setting fees, it may consider (1) the amount of impervious surfaces generating stormwater runoff, (2) land use types that result in higher concentrations of stormwater pollution, and (3) the property's grand list valuation. The authority may reduce or defer such fees for land classified as, or consisting of, farm, forest, or open space. This apparently refers to land classified as “490” land for property tax purposes, as well as land not so classified.
Reporting Requirements
By February 11, 2008, municipalities taking part in the pilot program must submit a joint report to the Environment Committee on the program's status. The report must include:
1. recommendations on whether additional legislation is needed to grant authorities the power to issue bonds, notes, or other evidence of debt;
2. a map showing the district's boundaries (apparently for each district);
3. information on the purpose and amount of any assessment recommended to fund the authority; and
4. any other information the commissioner requests under her grant agreements with the participating towns.
BACKGROUND
Clean Water Fund
The Clean Water Fund provides financial assistance to municipalities for planning, designing, and building wastewater collection and treatment projects. The fund includes a water pollution control federal revolving loan account, water pollution control state account, a Long Island Sound clean-up account, a drinking water federal revolving loan account, a drinking water state account, and a river restoration account (CGS § 22a-477).
Regional Water Pollution Control Authorities
Two or more municipalities may form a regional water pollution control authority. Regional water pollution control authorities receive various combinations of grants and loans from the Clean Water Fund for eligible projects, depending on the type of project (CGS § 22a-517).
490 Program Classifications and Penalty
By law, farm, open space, and forest land is assessed at its current use value for property tax purposes. The classification terminates when (1) the land's use is changed to something other than was described in the owner's application or (2) the land is sold or transferred. Under the 490 program, property is subject to a conveyance tax on its fair market value if it is sold or its use is changed within 10 years of the classification. The tax rate starts at 10% of the total sales price if it is sold within one year of classification and declines by 1% annually if it sold within 10 years (CGS §§ 12-107a, 12-504a, and 12-504e).
Special Services Districts
Any municipality may establish, by ordinance, a district to preserve, enhance, protect, and develop the town's economic health in order to promote the economic and general welfare of its citizens and property owners (CGS § 7-339m et seq. ). Although the statutes suggest that municipal officials start the formation process, the initiative usually comes from property owners who desire extra public services and are willing to pay for them through extra property taxes. Property owners elect a board of commissioners who set the budget and calculate the mill rate.
Related Act
PA 07-196 includes an identical provision extending the time a special services district has to repay its debt obligation from one to seven years after it incurs them.
OLR Tracking: PF: VR: JL: TS