This bill proposes amendments to the Winnipesaukee River Basin Control Replacement Fund, primarily reducing the capitalization rate from 5% to 2% of the value of depreciable assets of treatment facilities. The new capitalization percentage will be applied starting June 30, 2024, and the value of these assets will continue to be assessed every five years based on current replacement costs. Additionally, the bill introduces new provisions regarding the adjustment of fund contributions when members join, exit, or consolidate within the system, ensuring that the fund reflects the modified projected use of equipment and infrastructure.

The fiscal impact of this bill is significant, as it is expected to decrease state revenues by approximately $994,340 annually, starting in FY 2026, due to the reduced capitalization rate. Local expenditures will also decrease by the same amount, as the member communities are responsible for funding the Replacement Fund assessments. While the bill does not alter the fundamental purpose or operation of the Replacement Fund, it does modify the financial structure, which will affect the annual assessments and overall funding dynamics for the participating communities.

Statutes affected:
Introduced: 485-A:51
HB1435 text: 485-A:51