SENATE BILL REPORT

SB 5907

BYSenators Hansen, Barr and Benitz

Changing provisions relating to annexations and incorporations involving a portion of a fire protection district.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 27, 1989

Majority Report:  Do pass.

      Signed by Senators McCaslin, Chairman; Thorsness, Vice Chairman; Pullen, Sutherland.

Senate Staff:Sam Thompson (786-7754); Eugene Green (786-7405)

                  April 17, 1989

House Committe on Local Government

AS PASSED SENATE, MARCH 7, 1989

BACKGROUND:

Under current law, a city assumes ownership of the assets of a fire protection district if the city annexes or incorporates into more than 60 percent of the assessed value of the real property of a district.  The city may assume fire protection responsibilities for the area that is not annexed or incorporated.  If less than 60 percent of the assessed value of a district is annexed or incorporated, the district retains ownership of its assets, but must pay to the city a percentage of the value of district assets equivalent to the percentage of the area annexed or incorporated.  This payment is not required when less than 5 percent of the assessed value of the real property of a district is annexed or incorporated. 

It is suggested that in the event of a city annexation of a very small area of a district's territory that is nonetheless a significant portion of the assessed valuation, the city should not be allowed to assume the equivalent percentage of the value of district assets.

SUMMARY:

If a city annexes or incorporates into less than 5 percent of a fire protection district's territory, no payment of the equivalent percentage of the value of district assets to the city is required.  Language specifying an assessed valuation standard for the determination of the 5 percent figure is stricken. 

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Bruce Holloway, Grant County Fire District No. 5 (pro)

HOUSE AMENDMENT:

A procedure is established to enable a city or town that annexes or incorporates into less than 5 percent of the area of a fire protection district to acquire some of the district's assets.  The city or town and the district can agree upon the distribution of assets after a finding by the city or town that it will incur a significant increase in fire suppression responsibilities as a result of the annexation or incorporation, with a corresponding reduction of district responsibilities.  If the district does not concur in the finding, the matter will be decided in arbitration.  The arbitrators will decide whether a significant increase occurred and, if so, the amount of the district assets that will be transferred to the city or town.