HB 2700-S - DIGEST

(DIGEST OF PROPOSED 1ST SUBSTITUTE)

     Finds that:  (1) Municipal streets are deteriorating from heavy use and lack a reliable, dedicated funding source.  Failure to provide ongoing maintenance accelerates right-of-way degradation and erodes the value and availability of this significant public asset;

     (2) A street utility created and governed by the legislative authority of a city or town provides an appropriate and efficient means to monitor, regulate, and maintain public streets;

     (3) It is appropriate for the legislative authorities of cities and towns to properly define a class or classes of street users responsible for burdens created or benefits enjoyed by these street users, in the exercise of their police power, in order to protect the public health, safety, and welfare;

     (4) In order to provide safe and efficient travel on public streets, it is necessary for street utilities to impose appropriate street use charges on street users, identified by classifications such as residences and businesses, based upon the type of uses made of each property and the estimated impact that uses have on public streets, subject to the limitations in this act, all of which is necessary to protect the public's welfare.

     Declares that a city or town may elect by action of its legislative authority to own, maintain, operate, and preserve all or any described portion of its streets as a separate enterprise and facility, known as a street utility, and from time to time add other existing or new streets to that street utility, with full power to own, maintain, operate, and preserve these streets.

     Provides that a city or town electing to own, maintain, operate, and preserve its streets as a separate street utility may levy periodic charges upon street users identified by ordinance for the use of the streets in a total annual amount of up to fifty percent of the actual costs for maintenance, operation, and preservation of facilities under the jurisdiction of the street utility.  These fees or charges shall be placed in a specific fund dedicated to street maintenance.

     Declares that street utility fees and charges shall be expended only for street maintenance uses consistent with the adopted transportation and land use plans of the jurisdiction expending the funds and consistent with any applicable and adopted regional transportation plan for metropolitan planning areas.

     Provides that the city or town electing to own, maintain, operate, and preserve its streets and related facilities as a utility under this chapter may finance the operation, maintenance, and preservation through local improvement districts, utility local improvement districts, or with proceeds from general obligation bonds and revenue bonds payable from the charges issued in accordance with chapter 35.41, 35.92, or 39.46 RCW, or any combination thereof.  The city or town may use, in addition to the charges authorized, funds from general taxation, money received from the federal, state, or other local governments, and other funds made available to it.  The proceeds of the charges authorized shall be used strictly for street maintenance purposes in accordance with this act.

     Repeals RCW 82.80.040, 82.80.050, and 82.80.060.