S-0496.2  _______________________________________________

                         SENATE BILL 5825

          _______________________________________________

State of Washington      55th Legislature     1997 Regular Session

By Senators McCaslin and Oke

Read first time 02/14/97.  Referred to Committee on Government Operations.

Allowing withdrawal from a public utility district through city council vote.

    AN ACT Relating to withdrawing from a public utility district; and adding a new section to chapter 54.08 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 54.08 RCW to read as follows:

    (1) A city with a population greater than twenty thousand that provides water utility service to the residents therein, which is included in whole or in part within a public utility district operating only a water utility, may withdraw from the public utility district by a majority vote of the city council.

    (2) Following a city council vote to withdraw from a public utility district under this section, areas that are later annexed into the city shall automatically be withdrawn from the public utility district on the first day of January in the year the annexing city or town collects its property taxes imposed on the newly annexed area.

    (3) When a portion of a public utility district is annexed by or incorporated into a city or town under this section, any outstanding indebtedness, bonded or otherwise, must remain an obligation of the taxable property annexed or incorporated as if the annexation or incorporation had not occurred.

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