SENATE BILL REPORT

SB 6522

As of February 2, 2004

Title: An act relating to proper uses of county road funds.

Brief Description: Compensating county commissioners for road commissioner duties.

Sponsors: Senators Doumit and Swecker.

Brief History:

Committee Activity: Government Operations & Elections: 2/3/04.

SENATE COMMITTEE ON GOVERNMENT OPERATIONS & ELECTIONS

Staff: Diane Smith (786-7410)

Background: A three-commissioner board is the governing body of a service district. The service district is created by the county legislative authority to provide and fund capital and maintenance costs for any bridge or road improvement or to fund capital costs for state highway improvements. They are special purpose districts that use the county treasurer as their ex-officio treasurer. Electors are those registered voters residing within the district. The district may not include any incorporated territory unless the city or town adopts a resolution approving the inclusion of that area within the district. Board members are appointed by the county legislative authority and do not receive compensation for their services, in any capacity, but are entitled to reimbursement for relevant travel expenses.

Service districts have the authority to levy a voter-approved excess property tax for a one-year period. In addition, they may issue voter-approved general obligation bonds for capital purposes and retire them with a voter-approved excess property tax. Another additional option for the service district is to form local improvement districts, impose special assessments on the property specially benefitted by the local improvements and issue special assessment bonds or revenue bonds to fund the costs of the improvements.

As part of the property tax levy for general purposes, a tax levy up to $2.75 per $1,000 of assessed valuation is provided to fund the county road fund of each county. This money is used for proper county road purposes. It is budgeted and expended by the board of county commissioners of each county. Items that must be considered by each county legislative authority in developing its county road budget include administration, bond and warrant retirement, maintenance, construction, operation of equipment rental and revolving fund, and requirements of the County Road Administration Board.

Summary of Bill: The county road fund may be used to compensate county commissioners for performance of their duties as road commissioners.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: Ninety days after adjournment of session in which bill is passed.