Brief Description: Authorizing projects recommended by the public works board.

Sponsors: Representatives Wallace, Boldt, Dunshee, Orcutt, Lantz, Hankins, Alexander, Linville, Eickmeyer, Murray, Morrell, Upthegrove and Schual-Berke.

Hearing Date: 1/28/04

Staff: Charlie Gavigan (786-7340).

Background:

The Public Works Assistance Account, commonly known as the Public Works Trust Fund, was created by the Legislature in 1985 to provide a source of loan funds to assist local governments and special purpose districts with infrastructure projects. The Public Works Board, within the Department of Community, Trade and Economic Development (CTED), is authorized to make low-interest or interest-free loans from the account to finance the repair, replacement, or improvement of the following public works systems: bridges, roads, water and sewage systems, and solid waste and recycling facilities. All local governments except port districts and school districts are eligible to receive loans.

The account receives dedicated revenue from: utility and sales taxes on water, sewer service, and garbage collection; a portion of the real estate excise tax; and loan repayments.

The Public Works Assistance Account appropriation is made in the capital budget, but the project list is submitted annually in separate legislation. The CTED received an appropriation of approximately $261 million from the Public Works Assistance Account in the 2003-05 capital budget. The funding is available for public works project loans in the 2004 and 2005 loan cycles.

Each year, the Public Works Board is required to submit a list of public works projects to the Legislature for approval. The Legislature may remove projects from the list, but it may not add any projects or change the order of project priorities. Legislative approval is not required for pre-construction activities, planning loans, or emergency loans.

Summary of Bill:

As recommended by the Public Works Board, 79 public works project loans totaling $236.3 million are authorized for the 2004 loan cycle. The 79 authorized projects fall into the following categories:

(1) Twenty-seven domestic water projects totaling $57.2 million;

(2) Twenty-nine sanitary sewer projects totaling $110.4 million;

      (3) Three storm sewer projects totaling $8.9 million;

(4) Nineteen road projects totaling $59.2 million; and

(4) One bridge project totaling $1 million.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.