Summary of the Report of
The House Interim Committee on Water-Related Issues
Representative Gary Wiggins, Chair

March, 2001

Recent court cases and statutory changes have contributed to widespread interest in several water-related issues. As regions experience growth, territorial disputes have occurred between municipalities and public water supply districts. Procedures used to determine allowable water rate increases by private companies have also generated considerable discussion. A recent court case jeopardizes financing of new sewer lines by determining that sewer districts cannot require potential customers to use their services, and the regulation of wastewater treatment in residential subdivisions continues to be of interest to developers. The committee recognizes the complexity of these issues and recommends the following actions:

• Continued Discussions: Several issues warrant further discussion by the affected parties, including territorial disputes between municipalities and public water supply districts and the proposal by the Department of Natural Resources on water services districts.
• Public Water District Notice Requirements and Dissolution Payments: The committee supports legislation to clarify public notice requirements when water districts seek to expand and to distribute assets to rate payers rather than to property owners when districts are dissolved.
• The Public Service Commission and Territorial Disputes: The committee supports legislation to allow municipalities and public water supply districts seeking territorial agreements to request that the Public Service Commission determine property values.
• Territory Detachments from Water Districts: Detachment has been very difficult since recent statutory changes have required municipalities to pay the entire debt of a water district before annexed territory can be detached. The committee supports legislation that restricts the necessary payment to debt related to the annexed territory.
• Water Rate Increase Phase In: Consumers should be protected from large increases in water rates. The committee supports legislation that would provide the Public Service Commission with the authority to require phase in of large water rate increases over a several year period.
• Mandatory Sewer Connections: A recent court decision that prevents local sewer districts from requiring potential customers to connect to district lines jeopardizes financing for sewer extensions. The committee supports legislation to provide sewer districts with mandatory connection authority if fees are equitable to both new and existing customers.
• Regulation of Wastewater Treatment in Residential Subdivisions: The Departments of Health and Natural Resources have made significant progress in clarifying their respective jurisdictions in regulating wastewater treatment in residential housing developments. Recent publication of technical bulletins and other technical assistance should be encouraged and expanded.

Terry Finger, Senior Legislative Analyst