FISCAL NOTE
Date Requested: March 05, 2025
Time Requested: 04:31 PM |
| Agency: |
Economic Development Authority, WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1058 |
Comm. Sub. |
SB208 |
|
|---|
| CBD Subject: |
Finance and Administration |
|---|
|
FUND(S):
Mountain Homes Fund
Sources of Revenue:
General Fund
Legislation creates:
Creates New Expense, Creates New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The costs expected to arise from this measure are estimated at:
1) $12,000 - One-time expenses to set-up the loan insurance program, including legal review and counsel, estimated at a $300/hour hourly rate and 40-hour requirement to complete the task.
2) $5,000/year - Ongoing expense to gather, process, monitor, and report information directly related to the program, estimated at an hourly rate of $21/hour and 20 hours/month.
3) $6,000/year - Ongoing expense to cover travel and expenses to perform quarterly inspections while the project is under construction, estimated at a maximum $500/day for distant travel, four quarterly inspections. Nearby inspections to the home office would be much less expensive.
A revenue model to generate at least $12,000 year can be anticipated as follows:
Considering the minimum number of loan insurance issuances being 25 (calculated at a $10,000,000 fund issuing a maximum amount of $400,000/project), it is anticipated that an application fee of $2,000/application, non-refundable, would be sufficient to cover anticipated costs over a two-year life for each project.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
17,500 |
39,500 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
24,000 |
50,000 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Start-up Costs $12,000
Ongoing Costs of $110,000 Personal Services $11,000/year, for ten-year life as designed in the bill.
No costs for repairs, alterations, additional assets.
Revenues Non-refundable application fees $150,000 Assumes a total turnover within the program of three times an annual amount of $50,000 during the 10-year life of the bill.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
The bill appears to be fairly complete to me.
Person submitting Fiscal Note: J. Steven Webb
Email Address: Steven.J.Webb@wv.gov