HB 706-FN-LOCAL - AS INTRODUCED
2003 SESSION
08/10
HOUSE BILL 706-FN-LOCAL
AN ACT relative to the definition of net indebtedness under the municipal finance act.
SPONSORS: Rep. Maxfield, Merr 35; Rep. M. Harrington, Straf 68
COMMITTEE: Municipal and County Government
This bill changes the definition of net indebtedness under the municipal finance act.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03-0927
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Three
AN ACT relative to the definition of net indebtedness under the municipal finance act.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Municipal Finance Act; Definitions. Amend RSA 33:1, III to read as follows:
III. "Net indebtedness," all outstanding and authorized indebtedness, heretofore or hereafter incurred by a municipality, exclusive of the following: unmatured tax anticipation notes issued according to law; or notes issued in anticipation of grants of federal or state aid or both; debts incurred for supplying the inhabitants with water or for the construction, enlargement, improvement or maintenance of water works; debts incurred to finance the cost of sewerage systems or enlargements or improvements thereof, or sewage or waste disposal works when the cost thereof is to be financed by sewer rents or sewer assessment; debt incurred pursuant to RSA 31:10; debts incurred to finance energy production projects, the reconstruction or enlargement of a municipally owned utility, or the manufacture or furnishing of light, heat, power or water for the public, or the generation, transmission or sale of energy ultimately sold to the public; debts incurred to finance small scale power facilities under RSA 374-D; obligations to repay a public utility, as defined under RSA 362:2, for investments in energy efficiency and conservation measures; debts incurred outside the statutory debt limit of the municipality under any general law or special act heretofore or hereafter enacted (unless otherwise provided in such legislation); and sinking funds and cash applicable solely to the payment of the principal of debts incurred within the debt limit.
2 Municipal Finance Act; Exclusion From Debt Limit. Amend RSA 33:6-b to read as follows:
33:6-b Exclusion From Debt Limit. Municipalities, other than school districts and counties, may incur debt for energy production projects including the reconstruction or enlargement of a municipally owned utility; the manufacture or furnishing of light, heat, power or water for the public; the generation, transmission or sale of energy ultimately sold to the public; or the construction, enlargement, or improvement of small scale power facilities, as such facilities are defined in RSA 374-D:1; by the issue of bonds or notes authorized under this chapter, RSA 374-D, and as otherwise provided by law. Municipalities, school districts, and counties may incur obligations to repay a public utility, as defined under RSA 362:2, for investments in energy efficiency and conservation measures. Any debt or obligation incurred for [this purpose] these purposes shall be outside the debt limit prescribed in this chapter. Such debt shall at no time be included in the net indebtedness of any municipality for the purposes of determining its borrowing capacity.
3 Effective Date. This act shall take effect 60 days after its passage.
LBAO
03-0927
Revised 2/27/03
HB 706 FISCAL NOTE
AN ACT relative to the definition of net indebtedness under the municipal finance act.
FISCAL IMPACT:
The Association of Counties states this bill will have an indeterminable fiscal impact on county expenditures in FY 2004 and each year thereafter. There will be no fiscal impact on state, county, and local revenue or state and local expenditures.
METHODOLOGY:
The Association of Counties states this bill would allow county governments to engage in financial instruments for energy efficiency and conservation measures. The Association states there may be a cost associated with the investments, but they will likely be offset by expenditure reductions.
The New Hampshire Municipal Association states this bill would provide a municipality greater flexibility to undertake energy efficiency and conservation measures. Such projects would be subject to the same appropriations process as any other expenditure or bond vote. However, if a municipality is approaching its debt limit, a project that is not subject to the debt limit does not have to compete with a project that is subject to the debt limit in the same way. If a legislative body chose to undertake both projects, it could do so without having to prioritize them subject to the debt limit. The Association states there is no direct cost or reduction in cost that would result from this bill.
The Department of Revenue Administration states this bill will have no fiscal impact on the Department.