SENATE BILL REPORT

SB 5086

BYSenator Hayner

Authorizing local governments to create separate street and road enterprises.

Senate Committee on Transportation

Senate Hearing Date(s):January 31, 1989

Senate Staff:Louise Bray (786-7322)

AS OF JANUARY 31, 1989

BACKGROUND:

The growing inability of cities, towns and counties to adequately finance the maintenance of streets and roads using existing methods has prompted some legislators to seek alternatives.  One suggestion is that streets and roads should be recognized as a separate enterprise and facility comparable to a utility service and that users should be charged based upon benefits received and burdens imposed.

SUMMARY:

The legislative authority of any city, town or county may elect to maintain and repair its streets and roads as a separate enterprise and facility.  Charges may be levied against owners of real property based on the burden imposed, benefits received, or traffic generated by the owners or occupants of the property.

For this purpose, real property owners may be divided into classes of owners or occupants.  The rates charged must be uniform for the same class of service.  Factors that may be taken into account in formulating charges include cost of service, location of users, cost of maintenance and repair of various parts of the system, different character of service, size and quality of service, time of use, capital contributions and others. 

Local improvement districts, utility local improvement districts, or road improvement districts may be created to finance maintenance and repair.  Bonds are authorized to be issued.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested