SENATE BILL REPORT

SB 5954

BYSenators Talmadge, Bluechel, Garrett, McDonald and Zimmerman

Authorizing metropolitan municipal corporations to impose sewer connection charges.

Senate Committee on Governmental Operations

Senate Hearing Date(s):March 2, 1987

Senate Staff:Sam Thompson (786-7754); Eugene Green (786-7405)

AS OF MARCH 2, 1987

BACKGROUND:

Metropolitan municipal corporations have the authority to operate sewage collection and treatment facilities.  They do not have the authority to impose connection charges upon new customers of these facilities in addition to the uniform rates that all customers pay.

A connection charge would enable a metropolitan municipal corporation to require that new customers pay their proportionate share of the capital costs of sewage facilities to match the sum already paid by existing customers through regularly imposed rates.

Sewer districts have the authority to impose liens against property to enforce collection of delinquent connection and sewage disposal charges.  If the charges are delinquent for more than 60 days, the lien may be satisfied in a foreclosure action against the property.

SUMMARY:

Metropolitan municipal corporations engaged in transmission, treatment and disposal of sewage may impose a charge on property owners seeking to connect to their sewage facilities.  The charge will be established by the metropolitan municipal corporation's governing council.  It may not exceed the proportionate share of the system's capital cost attributable to the property being charged.

The charge will be a lien against the property being served and may be collected in any manner available to sewer districts.

Fiscal Note:      none requested