An Act To Allow the Kennebec Sanitary Treatment District To Establish and Maintain a Capital Reserve Fund
Maine Legislature, Session 127, LD 1495
Committee: Energy, Utilities and Technology
Sponsors: NADEAU, CYRWAY, BEAR, DOORE, LONGSTAFF, SHORT, THERIAULT

Legislative Document 
No. 1495 
H.P. 1018 
House of Representatives, December 23, 2015 
An Act To Allow the Kennebec Sanitary Treatment District To 
Establish and Maintain a Capital Reserve Fund 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Clerk of the House on December 21, 2015.  Referred to the Committee on 
Energy, Utilities and Technology pursuant to Joint Rule 308.2 and ordered printed pursuant to 
Joint Rule 401. 
ROBERT B. HUNT 
Clerk 
Presented by Representative NADEAU of Winslow. 
Cosponsored by Senator CYRWAY of Kennebec and 
Representatives: BEAR of the Houlton Band of Maliseet Indians, DOORE of Augusta, 
LONGSTAFF of Waterville, SHORT of Pittsfield, THERIAULT of China. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  P&SL 1971, c. 45, §15, as amended by P&SL 1991, c. 7, §§5 to 8, is 
further amended to read: 
Sec. 15.  Determination of annual apportionable costs.  The fiscal year of the 
district is determined by the trustees and the trustees shall, prior to the first day of the 2nd 
month of each fiscal year following the acceptance of this Act, determine the total 
anticipated sums necessary to provide for the operation and maintenance of the district 
and its facilities for the year and adopt a budget for that year.  The district trustees shall 
also determine the portion of the total sums to be raised for the fiscal year, the amounts to 
be apportioned to said towns and the Waterville Sewerage District. 
To effect a transition to a different fiscal year, the district may adopt a budget, 
determine the portion of the total sums to be raised for that budget and the amounts to be 
apportioned for one or more fiscal years not longer than 18 months each. 
Said total anticipated sums necessary for the operation and maintenance shall must be 
the total of sums required in any year for unfunded capital costs and financing costs plus 
costs of operation less funds on hand or in the judgment of the trustees to be received 
during said year from other than said towns and Waterville Sewerage District and 
available or to be available within said year to pay unfunded capital costs and financing 
costs or operating costs, as the case may be.  As used in this Act the following terms shall 
have the following meanings:  Unfunded capital costs and financing costs for any year 
shall include: 
1.  Capital outlay items the cost of which is not to be paid from proceeds of bonds or 
notes, other than notes in anticipation of revenue, or paid from the proceeds of a 
government grant or other donation; 
2.  Interest due and payable in such year or indebtedness created or assumed by the 
district or expected to be created or assumed by the district, exclusive of interest on 
temporary notes in anticipation of revenue; 
3.  Principal due and payable in such year on indebtedness created or assumed by the 
district and not to be refunded and for the payment of which funds are not in the 
judgment of the trustees otherwise to be available; and 
4.  Sinking fund payments.; and 
5.  Capital reserve funds pursuant to section 15-A. 
"Operating costs" or "costs of operations" for any year shall include: 
1.  The current expenses of operating, maintaining and repairing the district's 
facilities and properties, interest on notes issued in anticipation of revenue and all other 
expenses not otherwise specifically provided herein; and 
2.  Any deficit outstanding at the end of the prior calendar year for the payment of 
which funds are not, or in the judgment of the trustees will not be available in such 
calendar year. 
If a surplus exists at the end of a fiscal year, it may be transferred to a surplus account 
that may not exceed $100,000.  The balance in the surplus account may not be increased 
by more than $25,000 in any fiscal year.  The trustees may add to the sinking fund, if any, 
so much of any excess over said limitations as they determine advisable, and any 
remainder shall must be credited on an equitable basis against sums otherwise to be 
apportioned to said towns, the Waterville Sewerage District and any persons, firms or 
corporations other than said towns and sewer district under contract to pay for the use of 
the district's facilities during the year as at the end of which such surplus was created, 
except that payments to the capital reserve fund under section 15-A may be made before 
any excess is added to the sinking fund or remainder is credited against sums 
apportioned. 
Sec. 2.  P&SL 1971, c. 45, §15-A is enacted to read: 
Sec. 15-A.  Capital reserve fund.  The trustees may establish a capital reserve 
fund by appropriating money or by authorizing the transfer of unencumbered surplus 
funds at the end of any fiscal year for the purposes of maintaining, rehabilitating, 
upgrading or replacing aging infrastructure. 
1.  The annual appropriation for the purposes of the capital reserve fund may not 
exceed $500,000. 
2.  The maximum amount that may be kept in the capital reserve fund is $2,000,000. 
3.  When the trustees determine that a project relates to maintaining, rehabilitating, 
upgrading or replacing aging infrastructure, they may order the withdrawal and 
expenditure of the necessary amount from the capital reserve fund to cover the 
expenditure of the project.  If funds are committed to cover an expenditure that will run 
beyond a given fiscal year, those funds will not be included in the $2,000,000 cap 
established under subsection 2. 
4.  The trustees are responsible for oversight of the capital reserve fund and shall 
deposit or invest the fund according to the Maine Revised Statutes, Title 30-A, chapter 
223, subchapter 3-A.  Any interest earned or capital gains realized accrue to and become 
part of the capital reserve fund. 
SUMMARY 
This bill allows the Kennebec Sanitary Treatment District to establish a capital 
reserve fund to help in paying for the maintaining, rehabilitating, upgrading and replacing 
of its aging infrastructure.