Bill
No.: SF0073 Drafter:
MRW
LSO
No.: 06LSO-0127 Effective Date: 7/1/2006
Enrolled
Act No.: SEA0036
Chapter
No.: 103
Prime
Sponsor: Senator Vasey
Catch
Title: Use of surplus water funds.
Subject: Provides
for transfer of surplus water funds.
Summary/Major
Elements:
- Allows
a city or town that has received funds from the sale of water services in
excess of costs, to transfer the funds from those surplus water funds to
pay for the redemption and cancellation of bonds that were used for the
purchase price of the water or the cost of the construction, extension and
enlargement of the water system.
- The
city or town is limited on the amount of redemption of the bonds to the
par value plus 50% of the unearned interest and not to exceed market
value.
- The
city or town may pay the surplus funds into the general fund of city or
town, provided sufficient funds are maintained to cover expenses of the
water system.