OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sHB-5509

AN ACT CONCERNING MUNICIPAL ORDINANCES FOR INTEREST RATES ON DELINQUENT SEWER ASSESSMENTS.

AMENDMENT

LCO No.: 5503

File Copy No.: 380

House Calendar No.: 254


OFA Fiscal Note

See Fiscal Note Details

The amendment strikes the underlying bill and its associated fiscal impact.

Instead, it requires the Public Utilities Regulatory Authority (PURA) to establish a regulatory program for water pollution control authorities (WPCAs) located in certain municipalities. It is anticipated that two municipalities (Bridgeport and Stamford) fall under the bill's provisions. This results in annual costs of $865,650 to the Public Utilities Control (PUC) fund beginning in FY 19, including fringe benefits of $357,653 to the PUC fund, to hire six staff persons and a consultant to manage the new regulatory program.

It also establishes a $4 surcharge on each customer in the new regulatory program. As an estimated 207,432 customers exist within this universe, this provision would generate $1,081,728 in revenue beginning in FY 19 to the PUC fund. Under the bill, this revenue would be used to offset the costs and expenses to PURA for establishing and administering the program.

Therefore, the revenue raised by the $4 surcharge covers the costs for PURA for administering the new regulatory program.

Additionally, the bill requires the cities of Bridgeport and Stamford to adopt ordinances to lower interest rates on delinquent sewer assessments. This is anticipated to result in a revenue loss to those municipalities.

Lastly, the amendment restricts assignees of water pollution control authorities from purchasing foreclosed properties which is not anticipated to result in a fiscal impact to the state or municipalities.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.