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SubjectsParks and Recreation › Metropolitan Park District (MPD) Finance
Reviewed 02/2014

Metropolitan Park District (MPD) Finance

Contents

Metropolitan Park District Fiscal Administration

  • Treasurer of metropolitan park district. (RCW 35.61.180)
    • The ex officio treasurer the district is the county treasurer of the county within which all, or the major portion, of the district lies
    • The district can designate someone else, if the board has received the approval of the county treasurer
    • Treasurer, if not county treasurer, must be bonded
  • Metropolitan Park District Fund. (RCW 35.61.210)
    • When collected, the general tax shall be placed in a separate fund in the office of the county treasurer to be known as the "metropolitan park district fund" and paid out on warrants.
  • Contracts are to be by competitive bidding or Small Works Roster. (35.61.135)

Metropolitan Park District Debt Authority

Metropolitan park districts may issue general obligation debt in an amount equal to 2 ½ percent of their assessed valuations. (RCW 35.61.110)  Of this 2 ½ percent, ¼ percent may be nonvoted (also called councilmanic) debt. (RCW 35.61.100) The rest must be voted. The source for repayment of nonvoted debt is the district’s general fund. For voted debt, debt service is paid from an excess property tax levy, which must be passed by a 60 percent vote, with an election turnout of at least 40 percent of those voting in the last general election. (RCW 84.52.056 and art. 7, sec.2, of the constitution.) This debt must be used for capital purposes (RCW 84.52.056) and can issued for a maximum of 20 years. (RCW 35.61.100)

Districts may also issue all kinds of short-term debt: tax anticipation notes, bond anticipation notes, revenue anticipation notes, grant anticipation notes as well as use lines of credit. (RCW 35.61.100)

Comparing Metropolitan Park Districts with Park and Recreation Service Areas and Districts

Almost completely across the boards, 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 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 assessed valuation compared to ¼ percent for MPDs. The total amount - voted and nonvoted - is the same 2 ½ percent of assessed valuation. Park and recreation districts may incur nonvoted debt in an amount equal to ¼ percent of assessed valuation and the total limit is 1 ¼ percent of AV.

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