SENATE BILL REPORT

                   SB 5856

                    As of February 24, 1995

Title:  An act relating to local improvement districts.

Brief Description:  Decreasing the signature requirements for protests to local improvement districts.

Sponsors:  Senators Hale, Roach, McCaslin, Loveland, Moyer, Hargrove, Hochstatter, Owen, Morton, Deccio, Long, Johnson and Oke.

Brief History:

Committee Activity:  Government Operations:  2/28/95.

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Staff:  Rod McAulay (786-7754)

Background:  In cities or towns, local improvement districts and utility local improvement districts are mechanisms for financing civic improvements, such as sewer or water systems or roads, through assessments levied against the adjacent properties that are benefited by the improvement.  An assessment may not exceed the actual increase in value of the assessed parcel, but may be paid either in a lump sum or over a period of years.

The creation of a local improvement district in a city or town may be initiated either by a resolution of the city or town council or by a petition signed by the owners of property aggregating a majority of the area within the proposed district.

The creation of an improvement district by resolution of the city or town council may be stopped by a protest filed within 30 days of adoption of the ordinance authorizing the establishment of the district.  The protest must be signed by the owners subject to 60 percent or more of the total cost of the improvement.  Determination of the cost and allocation of cost is based upon the preliminary estimates and assessment roll of the proposed improvement district.

A protest will not divest a city or town from establishing an improvement district if:  (1) the resolution establishing the improvement district is adopted by unanimous vote of the council; and (2) the improvement is for sanitary sewers, water mains or fire hydrants that require improvement. 

Summary of Bill: A city or town may be divested of authority to proceed with the establishment of a local improvement district or a utility local improvement district, in cases where the improvement district is created by resolution of the city or town council, if a protest is filed within 30 days of the adoption of the resolution signed by the owners subject to 40 percent or more of the total cost of the improvement.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.