HOUSE BILL REPORT

HB 643

BYRepresentatives Beck and Haugen

Designating use of special assessments before bonds are issued by local improvement districts.

House Committe on Local Government

Majority Report:     Do pass.  (11)

     Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Beck, Bumgarner, Ferguson, Nealey, Nelson, Nutley, Rayburn, L. Smith and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS PASSED HOUSE MARCH 9, 1987

BACKGROUND:

Laws relating to sewer district and water district utility local improvement districts (ULID's) require prepaid special assessments to be placed into the bond fund used to retire revenue bonds.  Revenue bonds must be issued to cover both the amount of prepayments and the amount or special assessments that are not prepaid.  Those revenue bonds issued to cover the portion of the prepaid assessments, are immediately redeemed with the prepayments.

SUMMARY:

Sewer district and water district laws are altered to allow prepaid special assessments associated with utility local improvement districts (ULID's) to be placed directly into the fund used to finance construction costs, instead of into the revenue bond fund.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     Joe Daniels and Bert Lysen, Southwest Suburban Sewer District; and Bill Mudge, Washington State Association of Sewer Districts.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     This will save money for sewer and water districts by reducing the dollar value of revenue bonds issued for a ULID, and therefore saving bond issuance costs.

House Committee - Testimony Against: None Presented.