COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         4619-04

Bill No.:          Truly Agreed To and Finally Passed SCS for HCS for HB 1804

Subject:           Cities, Towns, and Villages: Charter

Type:              Original

Date:               May 29, 2008

Bill Summary:            Section 82.020 permits cities with more than 5,000 inhabitants to frame a charter as provided in Sections 19 and 20 of Article VI of the Constitution. This section has an emergency clause. Section 313.820 repeals limitations on the expenditure of excursion gambling boat admission fee revenues by the City of St. Charles, and St. Charles County.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

In response to identical legislation with regards to Section 82.020, contained in fiscal note 4619-02, the following fiscal impact statements were issued:

Officials of the Cities of Centralia and West Plains assume no fiscal impact.

Oversight assumes this proposal is amending state law to make it compatible with the Missouri Constitution, Sections 19 and 20 of Article VI. Section 19 of the Missouri Constitution currently allows cities with a population of 5,000 or more to form a charter. Missouri’s current law states that cities with a population of 10,000 or more may form a charter.

Oversight assumes there would be no state or local fiscal impact.

Section 313.820 - Gambling boat admission fee revenues in St. Charles City and County:

Officials of the Gaming Commission assume no fiscal impact.

Oversight assumes that subsection 3 of Section 313.820 in this proposal is being repealed. This subsection limited the amount of revenues derived from admission fees for gaming boats in St. Charles City and County, after fiscal year 2007. This section also set limitations on the expenditure of gaming boat admission fee revenues in fiscal years 2010, and 2015. Any revenue collected in excess of the limitation provided for after fiscal year 2007, would require a rolling back of property tax rates.

Oversight assumes that by repealing subsection 3 would negate the rolling back of property taxes, providing that revenues were in excess of the limitations provided for. Oversight assumes, based on a Gaming Commission fiscal year project summary, that gaming admission revenues in St. Charles City and County are declining. In FY 2005 gaming admission fees were $10,613,823 and $ 9,966,008 in FY 2006, and in FY 2007 they were $9,037,950.

Oversight will show that by repealing subsection 3 that the fiscal impact to St. Charles City and County could either be $0 or there could be a positive savings from not having to roll back the property tax levy, providing that fees would have been in excess of the limitations provided for.

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

FISCAL DESCRIPTION

This bill changes the laws regarding municipalities. In its main provisions, the bill:

(1) Requires the budget or any authorization to expend funds in third class cities to be approved by an ordinance, or resolution approved by a majority of all members elected to the governing body; (Section 77.105)

(2) Authorizes cities with more than 5,000 inhabitants to frame and adopt or amend a charter pursuant to Sections 19 and 20 of Article VI of the Missouri Constitution. Currently, only cities with more than 10,000 inhabitants may frame and adopt or amend a charter, (Section 82.020); and

DESCRIPTION (continued)

(3) Repeals the limits on the expenditure of excursion gambling boat revenues in the City of St. Charles and St. Charles County. The bill contains an emergency clause for the provision regarding charter cities. (Section 313.820)

Section 82.020 has an emergency clause.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Missouri Gaming Commission

City of Centralia

City of West Plains

NOT RESPONDING

City of Boone Terre

City of Bernie

City of Kearney

City of Knob Noster

City of Linn

City of Louisiana

City of Pacific

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                May 29, 2008