HOUSE BILL REPORT
HB 1061
BYRepresentatives Wineberry, Bumgarner, Beck, Ferguson, Nelson, Rayburn, Madsen, Zellinsky, Vekich, Cantwell, Locke, Haugen, Nutley, Schoon, Heavey, Lux, Niemi, P. King, Todd, May and Rasmussen
Authorizing the creation of economic rebirth districts.
House Committe on Trade & Economic Development
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. (13)
Signed by Representatives Wineberry, Vice Chair; Amondson, Beck, Cantwell, Grant, Hargrove, Holm, McLean, McMullen, Moyer, Rasmussen, Schoon and J. Williams.
Minority Report: Do not pass. (3)
Signed by Representatives Belcher, Doty and Kremen.
House Staff:Steve Hodes (786-7092)
AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT
MARCH 5, 1987
BACKGROUND:
There are a range of services and facilities which local areas within the boundaries of incorporated areas currently provide for themselves through the creation of special districts such as water and sewer districts. Citizens within such areas provide for the financing of services through the imposition of taxes, such as property tax levies, or through the use of user fees or charges for services rendered. There is no special district currently authorized under state law which may provide a wide range of services and facilities within an existing city or town in order to enhance the services provided by the jurisdictions within which they operate, and which are designed to be used to act as economic development tools in such areas.
There is an extensive history in Washington state of citizens utilizing local districts to provide a wide range of services and facilities, dating from the passage of legislation authorizing port districts in the early years of the century. There are currently over 60 different types of special purpose districts authorized in Washington state.
SUMMARY:
SUBSTITUTE BILL: One or more economic rebirth districts may be established within the boundaries of a city, town, or county to provide and fund urban services and facilities in order to further local economic revitalization efforts. Economic rebirth districts are quasi-municipal corporations having independent taxing authority. Districts are governed by a seven-member councils. Within a city or town, a council shall consist of three residents of the proposed district elected by registered voters within the district, the mayor or a designee, two city council members or designees, and a member of the county council or designee. In unincorporated areas in a county, the county executive or designee is on the council in place of a mayor, and county council members or designees serve in place of city council members.
In order to create an economic rebirth district, a petition shall be filed with the city, town or county council requesting the district and defining its boundaries, signed by 10 percent of the registered voters in the proposed district and specifying the intended purposes to be served by the district. The city or town council shall hold a public hearing and shall provide for a ballot proposition at the next general election authorizing the creation of the district. A simple majority of voters within the proposed district boundaries is required to pass the ballot proposition.
Economic rebirth districts are authorized to finance or to assist in the financing of a wide range of public improvements including: streets, sidewalks, street lighting, park and recreation facilities, community centers, parking facilities, fire and police facilities, senior citizen facilities, day care centers, and museums. Districts may also finance and provide a range of services and activities, including: economic development and promotion, street cleaning, maintenance of facilities provided for above, social, recreational, and cultural activities, and information-related activities.
Districts may levy household and business and occupation taxes. They may levy an annual property tax for ten years of up to one dollar per thousand dollars of assessed valuation, extension of which requires voter approval. The levy of an economic rebirth district is junior to that of existing taxing districts. Districts may utilize excess levies with voter approval. General obligation bonds may be issued by economic rebirth districts which together with non-voter approved debt equal no more than three-eighths of one percent of the value of taxable property within the district. Districts may issue general obligation bonds for capital purposes with the assent of a majority of voters in an economic rebirth district of up to one and one-fourth percent of the value of taxable property within the district.
Economic rebirth districts may form local improvement districts to finance improvements, impose special assessments on property especially benefitted by the improvements, and issue special assessment bonds to finance the improvements. Economic rebirth districts may impose charges and fees for the use of its facilities and services and may accept gifts, grants, and donations. They may also exercise the power of eminent domain.
SUBSTITUTE BILL COMPARED TO ORIGINAL: An intent section has been added to the bill. Provisions permitting an economic rebirth district to be created in unincorporated areas of counties and specifying how they are to be structured have been added. The treasurer of the jurisdiction within which the district is created in choosing a depository institutions for the funds of the district is directed to consider the financial policies of the institutions regarding the economic needs of the residents of the district. Museums have been added to the list of facilities which may be financed.
Fiscal Note: Requested March 5, 1987.
House Committee ‑ Testified For: Representative Wineberry; Gregg Dohrn, Department of Community Development (information only).
House Committee - Testified Against: None Presented.
House Committee - Testimony For: It is important for local citizens to have the capacity to act to meet needs for economic revitalization by taxing themselves to provide needed facilities or services.
House Committee - Testimony Against: None Presented.