COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
LR No.: 1494-02
Bill No.: SB 612
Subject: City of Springfield: Utilities,
Type: Original
Date: March 17, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Local Government | ($1,875,000) | ($2,250,000) | ($2,250,000) |
ASSUMPTION
In response to almost identical legislation the Officials of the Department of Economic Development- Public Service Commission assume no fiscal impact.
Officials of the City of Springfield stated that the City would lose revenue in the following amounts. Water $400,000; Gas $1,300,000; electricity $900,000. The total loss of revenue would be $2,600,000 annually. Officials stated they would realize an annual loss in payments in lieu of taxes in the amount of $90,000.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| CITY OF SPRINGFIELD UTILITIES | |||
| Loss to City of Springfield | |||
| from Utility pricing requirements | ($2,166,667) | ($2,600,000) | ($2,600,000) |
| Loss to City of Springfield | |||
| Payments in lieu of taxes (PILOTS) | ($90,000) | ($90,000) | ($90,000) |
| ESTIMATED NET EFFECT TO LOCAL GOVERNMENT | ($2,256,667) | ($2,690,000) | ($2,690,000) |
FISCAL IMPACT - Small Business
Small businesses located outside the city limits of the City of Springfield, who purchases their utilities from the City could expect a reduction in utility costs..
DESCRIPTION
This act requires Springfield to sell its utility services on a nondiscriminatory basis and at the
same price to nonresidents as it would sell the same services to residents of Springfield.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Economic Development- Public Service Commission
City of Springfield
Mickey Wilson, CPA
Director
March 17, 2003