SENATE BILL REPORT

SB 5734

BYSenators Bender, Smitherman, Garrett and DeJarnatt

Authorizing counties and cities to establish transportation benefit districts.

Senate Committee on Transportation

Senate Hearing Date(s):March 4, 1987

Majority Report:  Do pass.

      Signed by Senators Peterson, Chairman; Hansen, Vice Chairman; Tanner, Vice Chairman; Bailey, Barr, Bender, Conner, DeJarnatt, Garrett, Halsan, Patterson, Smitherman, von Reichbauer, West.

Senate Staff:Gene Baxstrom (786-7303)

                  March 9, 1987

AS REPORTED BY COMMITTEE ON TRANSPORTATION, MARCH 4, 1987

BACKGROUND:

Local governments lack authority to provide road and highway facilities necessitated by economic development.  City and county powers are instead, provided in varying degrees to those units of government for various purposes.  No single district has the authority to address improvements on city streets, county roads and on state highways, nor has the power to utilize various funding sources such as property tax levies, local improvement tax assessments, and late-comer fees to fund those improvements.  Local governments are very limited in authority to impose development fees to pay the costs of public services, including transportation facilities, when development occurs.

Many persons feel that a comprehensive approach, through a special purpose unit of government, would allow that area to best address and accommodate transportation needs associated with economic development.

This is one of five measures developed by the Task Force on Economic Development/Transportation Issues, established by the Legislative Transportation Committee in 1986, to address the transportation needs arising in areas of rapid economic growth.

SUMMARY:

Cities, towns and counties are authorized to establish transportation benefit districts to fund the capital improvement of city streets, county roads and state highways within the district.  The improvement(s) must meet the following criteria:  1) consistent with transportation plans; 2) be necessitated by congestion levels attributable to economic development; 3) provide access to areas used for business purposes; and 4) be partially funded by local government or private contributions.

For counties, a benefit district may be created in all or in a portion of the unincorporated area and can include incorporated areas only with the approval of a city or town governing body.  A city district can include the area of another city, or unincorporated areas, with city or county approval.

Creation of a transportation benefit district requires a public hearing and a county or city legislative body's determination that it is in the public interest to form the district.  The legislative authority is the governing body of a benefit district.  District electors are all registered voters residing in the district.  Dissolution is required when district obligations have been met.

The following sources of funding for benefit districts are provided:  (1) single year voter approved excess property tax levies; (2) multi-year, voter approved, excess property tax levies used to redeem general obligation (G.0.) bonds; (3) the issuance of G.O. bonds; (4) the formation of local improvement districts (LIDs); (5) late-comer fees; (6) development fees related to transportation projects; (7) acceptance of gifts and donations; and (8) ability to apply for transportation benefit account funds.

No taxes can be imposed by a benefit district without voter approval. Assessments by a district are authorized.

Additional authority is included to allow exercising the powers of eminent domain.

Fiscal Note:      none requested

Senate Committee - Testified: Stan Finklestein, Association of Washington Cities; Jim Williams, Washington Association of Counties; John Doyle, Department of Transportation; Steve Callender, Snohomish County Economic Development Coordinator; Alex King Redmond Chamber of Commerce; Wes Bogart, Snohomish County Committee for Improved Transportation