Title: An act relating to increasing the maximum term of rural, island, and intercounty rural district general obligation bonds.

Brief Description: Increasing the term of nonvoter approved rural library district general obligation bonds.

Sponsors: By Representatives Williams, DeBolt, Hunt and Moeller.

Brief History:

Local Government: 2/14/05, 2/16/05 [DP].

Floor Activity:

Passed House: 3/8/05, 97-0.

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Majority Report: Do pass. Signed by 7 members: Representatives Simpson, Chair; Clibborn, Vice Chair; Schindler, Ranking Minority Member; Ahern, Assistant Ranking Minority Member; B. Sullivan, Takko and Woods.

Staff: Ethan Moreno (786-7386).

Background:

Statute provides for the establishment, management, and operation of different categories of library districts, including rural county library districts, intercounty rural library districts, and island library districts. In general, the organization and service areas of these districts is as follows:

• A rural county library district is a public corporation organized to provide library services to all the area of a county not included within the area of incorporated cities and towns.
• An intercounty rural library district is a municipal corporation organized to provide library service for all areas outside of incorporated cities and towns within two or more counties.
• An island library district is a municipal corporation organized to provide library service for all areas outside of incorporated cities and towns on a single island only and not all of the area of the county. Island library districts may only be established counties composed entirely of islands with fewer than 25,000 residents at the time the library district was created.

Notwithstanding other provisions, cities or towns meeting specified population criteria may be included within a rural county, intercounty rural, or island library district.

Property taxes may be levied by county legislative authorities for the establishment and maintenance of library services, subject to statutory requirements. The legislative body for rural county library districts, intercounty rural library districts, and island library districts is composed of appointed district trustees and is authorized to determine the amount of taxes to be levied for these districts.

Rural county library districts, intercounty rural library districts, or island library districts may contract indebtedness and issue general obligation bonds, subject to statutory requirements and limitations. The maximum term of nonvoter approved general obligation bonds must not exceed six years.

Summary of Bill:

The maximum term of nonvoter approved general obligation bonds issued by a rural county library district, intercounty rural library district, or island library district is increased from six to 20 years.

Appropriation: None.

Fiscal Note: Not requested.

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

Testimony For: This bill will allow library districts to pay for building construction costs or costs associated with responding to a disaster through current operational funds over a 20- year period. Library districts are constrained by being authorized only to borrow an amount that can be repaid from operational funds within six years. No libraries are currently hoping to use the 20-year authorization provided in this bill.

Testimony Against: None.

Persons Testifying: Jodi Reng, Timberland Regional Library.

Persons Signed In To Testify But Not Testifying: None.