BP BHEAD INT S

AN ACT Relating to expenditure limitations for local governments; adding a new chapter to Title 43 RCW; and providing an effective date.

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

NEW SECTION. Sec. 1. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Expenditures" includes all expenditures of funds other than the expenditure of:

(a) Moneys received as a gift, grant, donation, aid, or assistance from any person, firm, or corporation, public or private, when the terms and conditions of such gift, grant, donation, aid, or assistance require the application and disbursement of such moneys otherwise than for the general purposes of the municipality;

(b) Moneys received as a gift, grant, donation, aid, or assistance from the United States or any department or agency of the United States; or

(c) Moneys received as a gift, grant, donation, aid, or assistance from the state or any department or agency of the state.

(2) "Municipality" means a city with a population greater than five thousand persons, a county with a population greater than ten thousand persons, a fire protection district, a library district, a metropolitan park district, a public utility district, and a port district.

NEW SECTION. Sec. 2. (1) No municipality may expend in any fiscal year more than one hundred four percent of the municipality's expenditures in the previous fiscal year without the approval of the voters under section 4 of this act.

(2) The treasurer of a municipality shall not issue or redeem any check, warrant, or voucher that will result in an expenditure for any fiscal year in excess of the expenditure limit established under this chapter for the municipality.

(3) This section does not apply to expenditures in the first fiscal year by a municipality that is created after January 1, 1995, other than by consolidation or annexation. In applying the limit to expenditures in the second fiscal year to a municipality that was not in existence for the entire fiscal year, the expenditures for the first fiscal year shall be calculated by multiplying the average monthly expenditures by twelve.

NEW SECTION. Sec. 3. The expenditure limitations contained in this chapter shall be calculated by the auditors of the respective municipalities in accordance with the provisions of this chapter.

NEW SECTION. Sec. 4. (1) Expenditures by a municipality may be made in a fiscal year in an amount exceeding the limitations provided in this chapter if the expenditures are authorized by a proposition approved by a majority of the voters of the municipality voting on the proposition at a general election held within the municipality.

(2) After approval under subsection (1) of this section, the expenditures made during the applicable fiscal year shall be used for the purpose of computing the limitations for subsequent fiscal years.

(3) The ballot title for any vote of the people required under subsection (1) of this section shall be substantially as follows:

"Shall expenditures by ..... for fiscal year ... exceed the expenditure limit of ..... dollars by an additional amount equal to ..... dollars and shall subsequent expenditure limits be based on this new total?"

NEW SECTION. Sec. 5. Sections 1 through 4 of this act shall constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 6. This act shall take effect January 1, 1995, and shall apply to expenditures made beginning January 1, 1995.