A bill that State Sen. Maralyn Chase sponsored to require that voters in a water or sewer district get to decide whether a city or town can assume jurisdiction of their district became law in May when Gov. Jay Inslee signed it.
Democrat Chase represents the 32nd Legislative District including Lynnwood, Woodway and nearby unincorporated areas of southwest Snohomish County, parts of Edmonds and Mountlake Terrace, the city of Shoreline and a small part of northwest Seattle.
Such a law would have forced a vote before Shoreline’s assumption of the Ronald Wastewater District. The city and the district currently are negotiating details of the change.
“This law will give taxpayers the ability to insist that 100 percent of the taxes we pay for our water and sewer systems will be dedicated to providing the services and maintaining the system,” Chase said. “This can enable taxpayers to prevent cities or towns from taking control of their water-sewer districts and raising rates to pay for other such as new developments or other non-water-sewer projects.”
The new law lets voters call for a referendum on any attempt by a city or town to assume jurisdiction of all or part of a water or sewer district.
Chase noted that like fire districts or school districts, water and sewer districts must spend their revenue solely for the purposes of the districts. Utility districts assess and adjust rates to provide for maintenance and service as necessary but may not assess additional taxes for the service.
However, she said, if a city assumes ownership of a water or sewer district, the city may levy taxes without limits, without restrictions on what the funds are used for, and without a vote of the citizens who voted to create the district. She added that water and sewer districts are the only districts that do not have a cap on the taxes that can be levied if a municipality takes them over.
Utility taxes are among the most regressive taxes levied on citizens, Chase said, adding that water and sewer are basic necessities and low-income ratepayers have no choice in accepting or refusing service or paying the ever-increasing taxes.
“A year ago, the taxpayers of Shoreline saw their water district taken over and lost their ability to control what they pay and what their dollars are used for,” Chase said. “This new law will protect other communities from cities and towns that try to overreach.”
Evan Smith can be reached at schsmith@frontier.com.
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