HOUSE BILL REPORT
SSB 6091
As Reported By House Committee On:
Government Operations
Title: An act relating to combining water and sewer districts.
Brief Description: Converting water and sewer districts into water‑sewer districts.
Sponsors: Senate Committee on Government Operations (originally sponsored by Senators Haugen, Winsley, Sheldon, Drew, McCaslin, Long, Hale, Snyder, Heavey and Sellar).
Brief History:
Committee Activity:
Government Operations: 2/20/96, 2/23/96 [DPA].
HOUSE COMMITTEE ON GOVERNMENT OPERATIONS
Majority Report: Do pass as amended. Signed by 15 members: Representatives Reams, Chairman; Cairnes, Vice Chairman; Goldsmith, Vice Chairman; Rust, Ranking Minority Member; Scott, Assistant Ranking Minority Member; Conway; R. Fisher; Hargrove; Honeyford; Hymes; Mulliken; Scheuerman; D. Schmidt; Van Luven and Wolfe.
Staff: Steve Lundin (786-7127).
Background: Statutes authorizing the creation of water districts were enacted in 1913. Statutes authorizing the creation of sewer districts were enacted in 1941. With a few exceptions these two sets of statutes are identical. It appears that the sewer district enabling legislation in 1941 was drafted using the basic text of water district laws, but substituted "sewer" for "water." In most instances, any change in water the district laws since 1941 was made in sewer district laws, and vice versa.
Water districts are authorized to provide water supply, street lighting, and fire protection services and facilities. It appears that no water district provides fire protection services and facilities. In addition, a water district is authorized to provide sewer (sanitary and stormwater) facilities under the sewer district laws.
Sewer districts are authorized to provide sewer (sanitary and stormwater) facilities. In addition, a sewer district is authorized to provide water supply facilities under the water district laws.
The primary differences between the powers of a sewer district and water district are as follows:
! a water district is authorized to provide street lighting and fire protection services and facilities, but a sewer district is not.
!a water district is authorized to impose annual non-voter approved property taxes to finance fire protection services if a fire protection district is not located within its boundaries, but a sewer district is not.
!a water district may impose fees or charges for actually providing water service. However, a sewer district may impose fees or charges for the availability of sewer services.
!in certain instances, a sewer district may be created by action of property owners, without voter participation. A water district may not be created in such a manner.
!a water district may incur general indebtedness (issue general obligation bonds) without voter approval and may also incur additional general indebtedness if authorized by voters. However, a sewer district may incur general indebtedness only with voter approval.
!the maximum term of revenue bonds issued by a sewer district is 30 years, but the maximum term of revenue bonds issued by a water district is 20 years.
!a sewer district may create utility local improvement districts (ULIDs) to finance sewer facilities, but a water district may create either local improvement districts (LIDs) or utility local improvement districts (ULIDs) to finance water facilities.
Summary of Amended Bill: Water district and sewer district statutes are combined, resulting in a single set of statutes by which a water district or sewer district may operate. Water districts and sewer districts are renamed as water-sewer districts.
The combining of these statutes is accomplished by using the substance of either a water district or sewer district statute on a particular matter, applying this provision to water-sewer districts, and repealing the similar statute for a sewer district or water district relating to the particular matter. The sewer district statutes that are so amended are recodified into Title 57 RCW.
Statutes relating to the provisions regarding sanitary and stormwater sewer facilities are altered to distinguish sanitary sewer facilities, which are referred to as sewer facilities, from stormwater sewer facilities, which are referred to as drainage facilities.
As a result, a water-sewer district may
!provide water, sanitary sewer, drainage, or street lighting services and facilities;
!issue revenue bonds with a maximum term of 30 years;
!incur non-voter approved general indebtedness of up to 0.5 percent of the value of taxable property located in the district;
!be created only by voter approval and the special procedure to create a sewer district without voter approval is repealed; and
!create LIDs to finance sewer facilities.
The authority of a water district to provide fire protection services and impose a non-voter approved property tax levy is eliminated. More than two districts may merge at the same time.
It is clarified that a ballot proposition to authorize a single year excess levy, that is submitted to voters at the same election when the separate ballot proposition is submitted authorizing the creation of a district, may be submitted to voters only if the election is held in February, April, March, or May.
The minimum dollar value of materials, supplies, or equipment that may be purchased without a contract and some form of competitive bidding is increased from $5,000 to $10,000.
The legislation takes effect on July 1, 1997.
Amended Bill Compared to Substitute Bill: A number of technical changes are made. The authority of a water district to provide fire protection services and impose a non-voter approved levy to finance such services is eliminated. Two districts may merge at the same time. The provision that a ballot proposition authorizing an excess levy may be submitted to voters at the same election when the ballot proposition is submitted to create the district is clarified. The day-labor limit was increased. The delayed effective date was added.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date of Amended Bill: Ninety days after adjournment of session in which bill is passed.
Testimony For: This will save money, improve the management of these districts, reduce confusion, and encourage merging of districts.
Testimony Against: None.
Testified: Senator Mary Margaret Haugen, prime sponsor; Joe Daniels, Washington Association of Sewer and Wastewater Districts; and Steve Lindstrom, Sno-King Water District Coalition.