LEGISLATIVE FISCAL ESTIMATE

[Second Reprint]

SENATE, No. 1815

STATE OF NEW JERSEY

214th LEGISLATURE

 

DATED: JANUARY 5, 2011

 

 

SUMMARY

 

Synopsis:

“Ocean County Stormwater Management System Demonstration Act”

Type of Impact:

No impact on State funds; Ocean County public property owners may be liable for user fees if stormwater utility is established.

Agencies Affected:

Ocean County Board of Freeholders; Ocean County municipalities; Department of Environmental Protection.

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

Year 2 

Year 3 

 

State Cost

None – See comments below

 

Local Cost

Indeterminate – See comments below

 

 

 

 

·        The bill authorizes, but does not require, Ocean County, or the Ocean County Utilities Authority, to establish a stormwater utility for the purpose of creating a stormwater management system pilot project to help manage the county’s stormwater runoff systems.

·        The bill authorizes Ocean County, or the Ocean County Utilities Authority, to finance the operation of the stormwater utility system through the imposition of user fees on property owners and the issuance of bonds.

·        The Department of Environmental Protection (DEP) is directed to create a stormwater utility guidance manual to provide guidance to counties and authorities seeking to establish stormwater management systems.

·        The Office of Legislative Services (OLS) estimates that, provided the pilot program is established, the fiscal impact of the bill on public funds would be limited to user fees imposed on publicly-owned properties in Ocean County.  Any DEP costs incurred in carrying out its responsibilities to Ocean County should be covered by its five percent allotment of annual user fee revenues provided under the bill.

 

BILL DESCRIPTION

 

      Senate Bill No. 1815 (2R) of 2010 authorizes, but does not require, Ocean County, or the Ocean County Utilities Authority, to establish, provide and maintain a stormwater utility for the purpose of creating a stormwater management system pilot project to manage the stormwater runoff of the county.  The bill authorizes Ocean County, or the Ocean County Utilities Authority, to finance the creation, operation, and maintenance of the stormwater utility system through the imposition of user fees on property owners and the issuance of bonds.

      The bill also requires the DEP to create a stormwater utility guidance manual to provide guidance to counties and authorities seeking to establish stormwater management systems.  The rate structure guidance provided in the stormwater utility guidance manual would define the unit by which stormwater runoff contributions are calculated and would be directly related to the specific costs of the stormwater management system.  Last, the bill requires that five percent of annual user fee revenues collected in Ocean County be transferred to the DEP to cover any costs it accrues for program planning, implementation and coordination of activities related to Ocean County pursuant to the purposes of the bill.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      Assuming that Ocean County voluntarily decides to create a stormwater utility and a stormwater management system as authorized by the bill, the OLS estimates that the bill’s fiscal impact on public funds would be limited to user fees, or stormwater utility charges, imposed on publicly-owned properties that utilize the services of any stormwater management systems that may be established.  Although it is unknown at this time what costs, if any, the DEP may incur in carrying out its responsibilities under the bill, they should be offset by the annual five percent allotment of user fee revenues the department is to receive for its services, at least with respect to Ocean County.  If the department incurs startup costs that exceed initial revenue allotments, the General Fund may have to cover these costs until sufficient revenue allotments from Ocean County are collected in the future and transferred to the department.

 

 

Section:

Environment, Agriculture, Energy and Natural Resources

Analyst:

Richard M. Handelman

Senior Fiscal Analyst

Approved:

David J. Rosen

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).