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NHGFOA Annual Conference Legislative Update

NHGFOA Annual Conference Legislative Update. Presented by Barbara T. Reid Government Finance Advisor May 3, 2013. 2013 Legislative Update. Retirement Treasury Official Ballot (SB 2) Capital Projects/Electronic Billing Tax Cap Budget Road Toll (Gas Tax) Expanded Gambling.

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NHGFOA Annual Conference Legislative Update

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  1. NHGFOA Annual ConferenceLegislative Update Presented by Barbara T. Reid Government Finance Advisor May 3, 2013

  2. 2013 Legislative Update • Retirement • Treasury • Official Ballot (SB 2) • Capital Projects/Electronic Billing • Tax Cap • Budget • Road Toll (Gas Tax) • Expanded Gambling

  3. Retirement Bills • HB 342 – reporting of compensation paid to retired members of the NH Retirement System. • HB 364 – notice concerning employment of a retired member of the NH Retirement System of the limitation of pat-time employment. • Concern about employer liability. • Proposed Senate amendment to combine into one bill.

  4. Treasury Bills • HB 522 – allows treasurer to make payments upon orders of the selectmen “in a public meeting or by a noncontemporaneously signed manifest signed by a majority of the board.” • SB 172 – modifies investment option to include interest-bearing deposits for the purpose of avoiding the need to collateralize deposits greater than the FDIC coverage amount.

  5. Official Ballot – SB 2 • SB 197 – deals with appropriations for water or sewer that are funded by user fees. Allows a separate warrant article to include a default budget amount. “Default budget” definition same as current law.

  6. Capital Projects • SB 111 – allows an appropriation for a capital project to be funded for a term beyond one fiscal year, not to exceed five fiscal years. • Only for projects defined in RSA 33:3 or 33:3-c, requires 2/3 or 3/5 vote. • Article must state the total appropriation, term of years, and amount appropriated each year. • Will be deemed appropriated each year without further action by the legislative body. • Non-lapsing until the end of the term, can be rescinded.

  7. Electronic Billing • SB 111 – amends language enacted last year which intended to authorize electronic billing for property taxes, water and sewer, but inadvertently only authorized electronic billing for those taxes and fees collected by the tax collector. Clarifies that it is the tax collector “or the person responsible for issuing bills.”

  8. Tax Cap • HB 101 – corrected an unintended consequence related to the tax cap legislation enacted in 2011 for Newfound Regional School District only. • SB 2 - allows any fund balance used to reduce the prior years taxes to be added back for purposes of calculating the tax cap.

  9. Schedule of State Aid to Cities, Towns and School Districts

  10. Flood Control PILOT • Bristol • Dublin • Dunbarton • Franklin • Hancock • Harrisville • Henniker • Hill • Keene • New Hampton • Peterborough • Roxbury • Salisbury • Sanbornton • Surry • Weare • Webster

  11. Flood Control PILOT • Amount owed each year = $801,034 • DRA Budget = $225,000 • Represents the New Hampshire share only

  12. State Aid Grants • Delayed and Deferred List - 127 projects in 60 municipalities. Total state obligation = $53 million over the terms of the bonds. See list. • State funding cut off in fall 2008. • All projects had received legislative body approval for funding, understanding that the state would be a financial partner when debt payments came due. • Governor’s budget, HB 623, SB 168 • House budget begins funding in FY 2015

  13. State Aid Grants • HB 2 – includes a moratorium for any infrastructure projects not listed or that did not have local authorization by December 31, 2008. • Legislative committee to study funding of state aid grants – address current thresholds, how to fund future projects, criteria for eligibility. • Report by November 1, 2013.

  14. Meals & Rooms Distribution • 60% state, 40% municipal based on population • Catch-up provision: 75% of any increase in the meals and rooms tax revenue over the previous year to go municipalities, with a $5 million cap in any one year. • Catch-up provision suspended in 2010 resulting in funding frozen at the 2009 level = $58.8 million. • Governor and House reinstated the catch-up provision in FY 2015, budgeted $63.8 million.

  15. Highway Block Grants • Road toll (a.k.a. gas tax) proposed increase of 4 cents in each of the next 3 years for a total of 12 cents. • In both HB 617 and operating budget passed by House. • Will cost the average driver about $21 per year, $63 when fully implemented based on 12,000 miles per year @ 22 mile/gallon, assuming a penny-for-penny increase at the pump (which may not occur). • Ultimate user fee. • Road toll has not been increased in 22 years. Has any municipality not increased water or sewer rates in the past 22 years?

  16. Road Toll Increase 4-4-4 Plan

  17. Highway Block Grant • Only comprehensive plan to provide additional resources for infrastructure improvements. Every cent of the increase goes toward road and bridge improvements. • Gasoline prices have swung 30-40 cents, up and down, during the past 6 months with no obvious consequence to the overall economy or the state’s standard of living. 4 cents will be hardly noticed! • Citizens are not confined within the borders of their own community. Everyone benefits from the ability to travel safely to other communities and other regions of the state.

  18. Highway Block Grant • FY 2014-2013 total municipal block grant increase = $98 million • Projected increase in block grant funding per municipality, red listed bridge and poor roads maps: http://www.nhlgc.org/nhma/nhmalegislativepolicybills.asp • NH Public Radio video clip on gas tax http://www.nhpr.org/term/gas-tax

  19. Expanded Gambling • SB 152 – video lottery and table gaming at one location pursuant to a competitive bid process. • Proceeds for highway and bridge projects, education, (local, CCSNH, USNH), north country economic development, enforcement, treating gaming addiction, host and abutting municipalities.

  20. Expanded Gambling • Joint House Finance and Ways & Means committee to review: • Regulations • Revenues • Community Impact • Process will take longer than anticipated. Revenue from expanded gambling (other than possibly the license fee) not likely in the next biennium.

  21. Expanded Gambling • A lot of speculation, assumptions and uncertainty. • Timetable • Projections • Effect of Massachusetts casinos • Very strong proponents and very strong opponents.

  22. Federal Legislation • Tax exempt status of municipal bonds. • Presidents budget includes a cap. • Will likely result in higher interest costs on municipal bonds – investors will demand higher rates since the interest earned on these bonds will now be taxable. • Sample letter and talking points on the GFOA website at www.gfoa.org. • Contact NH congressional delegation members.

  23. Questions? Barbara T. Reid breid@nhmunicipal.org 230-3308 or 224-7447 extension 3308

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