Financial Advantages of Metropolitan Park Districts
New Metropolitan Park District Legislation (SHB 2557, Ch. 88, Laws of 2002)
From Budget Suggestions for 2003, MRSC Information Bulletin No. 513
Prior to the passage of this bill, only cities with a population of 5,000 or more had the authority to form metropolitan park districts (MPDs). Now all cities and counties may form metropolitan park districts that include territory in portions of one or more cities or counties. These districts can be created to acquire, manage, maintain, and improve parks, parkways, boulevards, and recreational facilities. Note that "recreational facilities" are a new permitted use of funds.
From a finance standpoint, the metropolitan park district statutes, in general, provide for greater and more secure funding than park and recreation districts and service areas. Almost completely across the board, metropolitan park districts offer more fiscal capacity and flexibility. This is particularly true for its property tax levy. First, the MPD levy is less subject to prorationing. Although MPDs formed on or after January 1, 2002 are further down the ladder than one formed before that date, anything is better than being absolutely the first districts to have their levy cut if prorationing is necessary. That is the situation for park and recreation districts and service areas. MPDs also have a higher maximum levy - 75 cents per thousand dollars assessed valuation (AV) versus 60 cents. In addition, the MPD levy is voted on by the legislative body and is permanent. Park and recreation districts and service area levies are subject to a vote of the people at least every six years and setting the levy requires a 60 percent majority with a 40 percent voter turnout.
Park and recreation service areas have slightly more generous debt limits than MPDs, having the ability to levy nonvoted debt in an amount equal to 3/8 percent of AV compared to 1/4 percent for MPDs. The total amount - voted and nonvoted - is the same 2 1/2 percent of AV. Park and recreation districts may incur nonvoted debt in an amount equal to 1/4 percent of AV and the total limit is 1 1/4 percent of AV.
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