SENATE BILL REPORT

REHB 1055

BYRepresentatives R. Fisher, Chandler, Zellinsky, Fraser, D. Sommers and Smith

Financing fire protection for state-owned buildings.

House Committe on State Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 20, 1990

Majority Report:  Do pass.

      Signed by Senators McCaslin, Chairman; Thorsness, Vice Chairman; DeJarnatt, Patrick, Sutherland.

Senate Staff:Barbara Howard (786-7410)

                  February 21, 1990

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 20, 1990

BACKGROUND:

State-owned property is normally exempt from property taxes.  The state has developed a variety of methods to reimburse jurisdictions providing fire protection services to such property.

Cities and towns are reimbursed through the Department of Community Development (DCD).  DCD is required to include in its budget funds sufficient to fund fire protection contracts made between state agencies and local communities.  The rate of reimbursement is calculated by dividing the total state-owned square-footage into the appropriation granted by the legislature. For fiscal year 1988-89, the allocation for the program was $437,000 for the 93 cities participating, translating into about 1.17 cents per square foot.

If a community and the contracting state agency agree that the money provided through DCD is inadequate, a separate contract may be negotiated for supplemental funds.  Six cities negotiate additional contracts, and the supplemental reimbursement is funded through each agency's budget.

A state agency or a local school district with equipment or buildings located outside city limits must negotiate a contract with the appropriate fire protection district.  The reimbursement of fire protection districts is not centrally administered under a single agency and the contract rates may vary considerably.

In addition, the six state institutions of higher education do not all use the same method of reimbursement for fire protection to the jurisdictions in which they are located.

SUMMARY:

The Office of Financial Management is directed to study the methods used by the state in reimbursing communities and fire protection districts for fire protection of state-owned property.  The study must include recommendations to improve the consistency of payments.  Under the recommended method, consideration may be given to the type of facility being protected, and payments below a recommended minimum are to be eliminated.

The study will be submitted to the Ways and Means and Governmental Operations Committees of the Senate, and the Appropriations and State Government Committees of the House of Representatives by December 1, 1990.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

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

Senate Committee - Testified: Jim Justin, Association of Washington Cities (pro); Dick Cushing, City Manager, Olympia (pro)