SENATE BILL REPORT

                   SB 6748

              As Passed Senate, February 11, 2000

Title:  An act relating to increasing a city or town debt limit for purposes of financing capital facilities associated with economic development.

Brief Description:  Increasing local government debt limits to finance capital facilities.

Sponsors:  Senators Sellar, Patterson, McCaslin and T. Sheldon.

Brief History:

Committee Activity:  State & Local Government:  2/2/2000, 2/3/2000 [DP].

Passed Senate, 2/11/2000, 45-0.

SENATE COMMITTEE ON STATE & LOCAL GOVERNMENT

Majority Report:  Do pass.

  Signed by Senators Patterson, Chair; Gardner, Vice Chair; Hale, Haugen, Horn, Kline and McCaslin.

Staff:  Eugene Green (786-7405)

Background:  The amount that a city or town can borrow using general obligation debt and the purposes for which it can borrow are ruled by both statute and the state Constitution.  A city=s debt limits or debt capacity are subject to two sets of restrictions.  First, under the statutory and constitutional provisions, debt limits set the maximum amount of general obligation debt that a city can have outstanding at any one time.  Second, debt limits restrict how much of this capacity can be used for various purposes.  Statutorily, a city or town=s debt limit is as follows:  2 and 1/2 percent for providing general governing purposes (voted and nonvoted); 2 and 1/2 percent for provision of municipally-owned water, sewer, or electric facilities (voted); and 2 and 1/2 percent for providing open space and parks (voted).

Summary of Bill:  The uses for the 2 and 1/2 percent voter approved indebtedness for cities and towns to provide open space and park facilities is expanded to include capital facilities associated with economic development.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  The bill contains an emergency clause and takes effect immediately.

Testimony For:  This bill is especially important to the City of Leavenworth.  It is trying to find ways to make the city a year-round tourist attraction by converting an old fruit warehouse into a conference/convention center.  The bill does not increase total debt.  It just adds another use for which debt may be incurred.

Testimony Against:  None.

Testified:  Ron Rosenbloom, AWC (pro).