News Feature | June 19, 2015

Ratepayer Voice Reinforced By Washington State Law

Sara Jerome

By Sara Jerome,
@sarmje

A new Washington state law will address a constant tension in municipalities across the country: ratepayer rights.

“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 when Gov. Jay Inslee signed it in May,” Herald Net reported.

The bill restricts what local officials can do without asking ratepayers for their input. For instance, when Shoreline, Chase’s hometown, took control of the Ronald Wastewater District, ratepayers did not have a chance to vote, and the negotiations over this change dragged on in the aftermath of the decision.

“This can enable taxpayers to prevent cities or towns from taking control of their water-sewer districts and raising rates to pay for other uses such as new developments or other non-water-sewer projects,” Chase said in a statement.

Supporters said that Chase’s bill will prevent unfair practices by officials, including the following, according to Shoreline Area News:

As with other special-service districts such as fire districts or school districts, rate payer revenue must be spent solely for the purposes of the special service districts. However, 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. Water and sewer districts are the only special service districts that do not have a cap on the taxes that can be levied if these districts are assumed by a municipality.

Chase said the law, approved as Senate Bill 5048, will ensure that taxpayer money is spent efficiently.

“These special-purpose districts are created by a vote of the people, for the people. As such,100 percent of the taxes we pay for our water and sewer systems should be dedicated to providing the services and maintaining the system,” Chase said, per a statement. “These funds should not be diverted, or ‘repurposed’ for other uses such as new developments or other non-water-sewer projects unless the voters approve.”

To read more about utility management, visit Water Online’s Regulations and Legislation Solutions Center.