SENATE BILL REPORT

                            HB 1024

AS REPORTED BY COMMITTEE ON GOVERNMENT OPERATIONS, MARCH 23, 1993

Brief Description:  Extending the maturity date for general obligation bonds issued by fire protection districts.

SPONSORS: Representatives Rayburn, Edmondson, Bray and Dunshee

HOUSE COMMITTEE ON LOCAL GOVERNMENT

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  Do pass as amended. 

     Signed by Senators Haugen, Chairman; Drew, Vice Chairman; Loveland, Oke, Owen, and Winsley.

Staff:  Eugene Green (786‑7405)

Hearing Dates: March 19, 1993; March 23, 1993

BACKGROUND:

Local governments that are authorized to impose property taxes are also authorized to issue general indebtedness or general obligation bonds.

Fire protection districts are authorized to incur both non-voter approved general indebtedness and an overall amount of both voter approved and non-voter approved indebtedness.  The maximum term of non-voter approved general indebtedness that a fire protection district may incur is six years.  The maximum term of voter approved general indebtedness that a fire protection district may incur is 20 years.

SUMMARY:

The maximum term of non-voter approved general indebtedness that a fire protection district may incur is increased from six years to 15 years.

SUMMARY OF PROPOSED COMMITTEE AMENDMENT:

The maximum term is increased to 20 years.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

TESTIMONY FOR:

Some capital equipment has become so expensive, i.e. fire engines, that the present limit of six years is too short to pay off the bonds without an excess levy.

TESTIMONY AGAINST:  None

TESTIFIED:  Pete Spiller, Fire Commissioners Association (pro)