This bill amends the existing law regarding the Winnipesaukee River Basin Control Replacement Fund by reducing the capitalization rate from 5% to 2% of the value of the treatment facilities' depreciable assets. The new capitalization value will be computed every five years, starting from June 30, 2024. Additionally, the bill introduces provisions for adjusting contributions when members join, exit, or consolidate within the system. It also specifies that once a member has fully funded its share, they will not need to contribute further until the fund is utilized or the asset valuation increases. Expenditures from the fund will be replenished by contributions from members based on their usage of the facilities.

The fiscal impact of this bill is significant, as it is expected to decrease state revenues by approximately $994,340 annually 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 purpose or operation of the Replacement Fund, it will affect the annual assessments collected from the ten communities in the Winnipesaukee River Basin, leading to a substantial reduction in funding available for future repairs and replacements.

Statutes affected:
Introduced: 485-A:51
Version adopted by both bodies: 485-A:51
HB1435 text: 485-A:51