AN
ACT Relating to voter approval of a city assumption of a water-sewer district;
amending RCW 35.13A.010 and 35.13A.020; creating a new section; and declaring
an emergency.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
35.13A.010 and 1971 ex.s. c 95 s 1 are each amended to read as follows:
Whenever
used in this chapter, the following words shall have the following meanings:
(1)
The words "district," "water district,"
and "sewer district" shall mean a ((water district or sewer
district as indicated by the context of the section in which used)) "water-sewer
district" as that term is used in Title 57 RCW.
(2)
The word "city" shall mean a city or town of any class and shall also
include any code city as defined in chapter 35A.01 RCW.
(3)
((The words "included with" shall mean the inclusion of all or
part of the territory of a district, as indicated by the context, within the
corporate limits of a city either by incorporation of a city, annexation to a
city, consolidation of cities or any combination thereof.
(4))) The
word "indebtedness" shall include general obligation, revenue, and
special indebtedness and temporary, emergency, and interim loans.
Sec.
2. RCW
35.13A.020 and 1971 ex.s. c 95 s 2 are each amended to read as follows:
(1)
Whenever all of the territory of a water ((district or))‑sewer
district is included within the corporate boundaries of a city, ((and))
the city legislative body ((has elected by)) may adopt a
resolution or ordinance to assume jurisdiction ((thereof)) over all
of the district.
(2)
Upon the assumption, all real and personal property, franchises, rights,
assets, taxes levied but not collected for the district for other than
indebtedness, water ((and)), sewer ((lines)), and
drainage facilities, and all other facilities and equipment of the district
shall become the property of ((such)) the city subject to all
financial, statutory, or contractual obligations of the district for the
security or performance of which ((such)) the property may have
been pledged. ((Such)) The city, in addition to its other powers,
shall have the power to manage, control, maintain, and operate ((such))
the property, facilities and equipment and to fix and collect service
and other charges from owners and occupants of properties so served by the
city, subject, however, to any outstanding indebtedness, bonded or otherwise,
of the district payable from taxes, assessments, or revenues of any kind
or nature and to any other contractual obligations of the district.
((Such))
(3) The city may by resolution or ordinance of its legislative
body, assume the obligation of paying such district indebtedness and of levying
and of collecting or causing to be collected ((such)) the
district taxes, assessments, and utility rates and charges of any kind
or nature to pay and secure the payment of ((such)) the
indebtedness, according to all of the terms, conditions and covenants incident
to ((such)) the indebtedness, and shall assume and perform all
other outstanding contractual obligation of the district in accordance with all
of ((its)) their terms, conditions, and covenants. ((No
such)) An assumption shall not be deemed to impair the
obligation of any indebtedness or other contractual obligation ((entered
into after August 9, 1971)). During the period until the outstanding
indebtedness of the district has been discharged, the territory of the district
and the owners and occupants of property therein, shall continue to be liable
for its and their proportionate share of ((such)) the
indebtedness, including any outstanding assessments levied within any local
improvement district or utility local improvement district thereof. The city
shall assume the obligation of causing the payment of ((such)) the
district's indebtedness, collecting ((such)) the district's
taxes, assessments, and charges, and observing and performing the
other district contractual obligations. The legislative body of the city shall
act as the officers of the district for the purpose of certifying the amount of
any property tax to be levied and collected therein, and causing service and
other charges and assessments to be collected from ((such)) the
property or owners or occupants thereof, enforcing ((such)) the
collection and performing all other acts necessary to ((insure)) ensure
performance of the district's contractual obligations in the same manner and by
the same means as if the territory of the district had not been included within
the boundaries of a city.
When
a city assumes the obligation of paying the outstanding indebtedness, and if
property taxes or assessments have been levied and service and other charges
have accrued for ((such)) this purpose but have not been
collected by the district prior to ((such election)) the assumption,
the same when collected shall belong and be paid to the city and be used by ((such))
the city so far as necessary for payment of the indebtedness of the
district existing and unpaid on the date ((such)) the city ((elects
to)) assumes the indebtedness. Any funds received by the city which
have been collected for the purpose of paying any bonded or other indebtedness
of the district, shall be used for the purpose for which they were collected
and for no other purpose. Any outstanding indebtedness shall be paid as
provided in the ((bond)) terms, conditions, and covenants of
the indebtedness. All funds of the district on deposit with the county
treasurer at the time of title transfer shall be used by the city solely for
the benefit of the assumed utility and shall not be transferred to or
used for the benefit of the city's general fund.
NEW
SECTION. Sec. 3.
During the period commencing with the effective date of this act and running
through July 1, 1999, a city may not assume jurisdiction of all or a portion of
a water-sewer district under RCW 35.13A.030 or 35.13A.040, unless voters of the
entire water-sewer district approve a ballot proposition authorizing the
assumption under general election law with the city paying for the election
costs, and during the same period a water-sewer district may not:
(1)
Merge or consolidate with another water-sewer district unless each city that is
partially included within any of the districts proposing to merge or
consolidate indicates that it has no interest in assuming jurisdiction of the
district; or
(2)
Take any action that would establish different contractual obligations,
requirements for retiring indebtedness, authority to issue debt in parity with
the district's existing outstanding indebtedness, rates of compensation, or
terms of employment contracts, if a city assumes jurisdiction of all or a
portion of the district. Nothing in this subsection shall be construed to
prevent a district from issuing obligations on a parity with its outstanding
obligations, to repeat terms and conditions of obligations provided with respect
to earlier parity obligations, or to provide covenants that are customary for
obligations of similar utilities whether those utilities are operated by cities
or special purpose districts.
NEW SECTION. Sec. 4. This
act is necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public
institutions, and takes effect immediately.
