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F I S C A L I M P A C T R E P O R T

SPONSOR Nunez

DATE TYPED 2/08/05

HJM 1

SHORT TITLE Study Water Utility Authorities

SB

ANALYST Hadwiger

APPROPRIATION

(in $000s)

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

Indeterminate Non-Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Office of the State Engineer (OSE)

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of Bill

House Joint Memorial 1 would request the legislative council to direct the appropriate interim

legislative committee to examine the best method to enable local governments to operate and

maintain water utility authorities.

Significant Issues

DFA noted there are numerous ways for a water utility to organize and operate. For instance,

you can follow the Sanitary Project Act or the Mutual Domestic Water Act. In the past, the de-

termination was based on the size and the intent of the utility. The Sanitary Project Act is for an

authority that wants to include both a water utility and a wastewater utility. The Mutual Domes-

tic Water Act is for an authority that only wants to include the water utility.

FISCAL IMPLICATIONS

Depending on whether HJM1 contemplates need for a consultant study, the Legislative Council

Service might incur additional costs if this were to be enacted.

DH/sb/njw