AN ACT Relating to improvement districts; amending RCW 35.51.040; adding a new section to chapter 35.43 RCW; adding a new section to chapter 36.69 RCW; adding a new section to chapter 36.88 RCW; adding a new section to chapter 36.94 RCW; adding a new section to chapter 52.20 RCW; adding a new section to chapter 53.08 RCW; adding a new section to chapter 54.16 RCW; adding a new section to chapter 56.20 RCW; adding a new section to chapter 57.16 RCW; and adding a new section to chapter 87.03 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. Section 8, chapter 397, Laws of 1985 and RCW 35.51.040 are each amended to read as follows:

For the purpose of securing the payment of the principal of and interest on an issue of local improvement bonds, notes, warrants, or other short-term obligations, the legislative authority of a municipality may create a reserve fund in an amount not exceeding fifteen percent of the principal amount of the bonds, notes, or warrants issued. The cost of a reserve fund may be included in the cost and expense of any local improvement for assessment against the property in the local improvement district to pay the cost, or any part thereof. The reserve fund may be provided for from the proceeds of the bonds, notes, warrants, or other short-term obligations, from special assessment payments, or from any other money legally available therefor. The legislative authority of a municipality shall provide that a sum in proportion to the ratio between the part of the original assessment against a given lot, tract, or parcel of land in a local improvement district assessed to create a reserve fund, if any, and the total original amount of such assessment, plus a proportionate share of the interest accrued in the reserve fund, shall be credited and applied against any portion of the principal of that assessment paid by a property owner. Whether the payment is made during the thirty-day prepayment period referred to in RCW 35.49.010 and 35.49.020 or thereafter and whenever all or part of a remaining assessment or any annual installment thereof is paid, the reserve fund balance shall be reduced accordingly as each such sum is thus credited or applied to a principal payment. Each payment of an assessment or installment shall be reduced by the amount of credit. The balance of a reserve fund remaining after payment in full and retirement of all local improvement bonds, notes, warrants, or other short-term obligations secured by such fund shall be transferred on a prorated basis to those persons who made the original contribution. If the balance of the reserve fund does not exceed twenty thousand dollars, the fund shall be transferred to the municipality.

NEW SECTION. Sec. 2. A new section is added to chapter 35.43 RCW to read as follows:

The total dollar amount of the final assessment roll of a local improvement district or utility local improvement district may not exceed two hundred percent of the actual or bid cost of the items described in RCW 35.44.020 (1) and (6). A higher total cost may be authorized for a local improvement district or utility local improvement district by initiating the improvement district again, using the resolution or petition method.

NEW SECTION. Sec. 3. A new section is added to chapter 36.69 RCW to read as follows:

The total dollar amount of the final assessment roll of a local improvement district may not exceed two hundred percent of the actual or bid cost of the items described in RCW 35.44.020 (1) and (6). A higher total cost may be authorized for a local improvement district by initiating the local improvement district again, using the resolution or petition method.

NEW SECTION. Sec. 4. A new section is added to chapter 36.88 RCW to read as follows:

The total dollar amount of the final assessment roll of a county road improvement district may not exceed two hundred percent of the actual or bid cost of the items described in RCW 35.44.020 (1) and (6). A higher total cost may be authorized for a county road improvement district by initiating the county road improvement district again, using the resolution or petition method.

NEW SECTION. Sec. 5. A new section is added to chapter 36.94 RCW to read as follows:

NEW SECTION. Sec. 6. A new section is added to chapter 52.20 RCW to read as follows:

The total dollar amount of the final assessment roll of a local improvement district may not exceed two hundred percent of the actual or bid cost of the items described in RCW 35.44.020 (1) and (6). A higher total cost may be authorized for a local improvement district by initiating the improvement district again, using the resolution or petition method.

NEW SECTION. Sec. 7. A new section is added to chapter 53.08 RCW to read as follows:

The total dollar amount of the final assessment roll of a local improvement district may not exceed two hundred percent of the actual or bid cost of the items described in RCW 35.44.020 (1) and (6). A higher total cost may be authorized for a local improvement district by initiating the improvement district again, using the resolution or petition method.

NEW SECTION. Sec. 8. A new section is added to chapter 54.16 RCW to read as follows:

The total dollar amount of the final assessment roll of a local utility district may not exceed two hundred percent of the actual or bid cost of the items described in RCW 35.44.020 (1) and (6). A higher total cost may be authorized for a local utility district by initiating the local utility district again, using the resolution or petition method.

NEW SECTION. Sec. 9. A new section is added to chapter 56.20 RCW to read as follows:

The total dollar amount of the final assessment roll of a utility local improvement district may not exceed two hundred percent of the actual or bid cost of the items described in RCW 35.44.020 (1) and (6). A higher total cost may be authorized for a utility local improvement district by initiating the utility local improvement district again, using the resolution or petition method.

NEW SECTION. Sec. 10. A new section is added to chapter 57.16 RCW to read as follows:

NEW SECTION. Sec. 11. A new section is added to chapter 87.03 RCW to read as follows: