Washington State County Road Administration Board

1. Washington State County Road Administration Board

2. Overview ofRoad Levy Diversion

3. Diversion Issue History • CRAB created by the Legislature in 1965 • Standards of Good Practice formulated

4. Agency Focus • Enhance professionalism within County Road Departments throughout the state • Ensure compliance by County Road Departments with adopted statutes and regulations

5. Duties of the CRABoard • RCW 36.78.070 • Standards of Good Practice • Reporting requirements • Determine compliance • Advise counties • Administer grant programs

6. Organization • Nine member board • Elected officials and county engineers • Distribution of membership • Population • Geographic • Support staff • Sixteen people

7. Standards of Good Practice • Standards for “the administration of county roads and the efficient movement of people and goods over county roads”. • RCW 36.78 • WAC 136-12 through 136-70 • Compliance verified through various reports and official county visits

8. Certificate of Good Practice • Annual certification • County Engineer and Legislative Authority must certify compliance with Standards of Good Practice • Forwarded to State Treasurer for disbursement of gas tax revenue

9. Grant Programs • Rural Arterial Program (RAP) — 1983 • Reconstruction of county rural arterial system • County Arterial Preservation Program (CAPP) — 1990 • Preservation of rural and urban paved arterials

10. Road Levy (Property Tax) • Authority: Over 33% of county road revenues are local property taxes • Senior Levy Limits: • $1.80/$1,000 for current expenses • $2.25/$1,000 for roads • Sum of levies cannot exceed $4.05/$1,000 • Property Tax Levy – RCW 84.52.043 • Road Fund Levy – RCW 36.82.040

11. Road Fund Diversion • RCW 36.82.020: “Any funds accruing to… the county road fund… shall be expended for proper road purposes”. • Funds not expended for “proper road purposes” are said to be diverted” (Small “d” variety).

12. Road Fund Diversion • “Diversion” or Big “D” refers to road levy intended for road fund but not deposited because they are earmarked for other purposes. • RCW 36.33.220: “… expend any portion of the county road property tax revenues for any service to be provided in the unincorporated area of the county…” • RCW 36.82.040: “… revenues produced… shall be placed in a separate and identifiable account within the county’s current expense fund.”

13. Road Fund Diversion • State Auditor’s Office suggested procedures for handling diverted road levy: • Funds diverted shown as estimated revenue • Separated from regular property taxes • Receipted directly into current expense fund. (Must use BARS number and revenue account for “diverted county road taxes”) • Develop accounting procedures that diverted funds were used to provide services in the unincorporated are of the county

14. Traffic Law Enforcement • Very little guidance on limits or definitions of traffic law enforcement. Check RCW 36.79.140. • Allowable “traffic law enforcement” items: • Oversize/overweight vehicle enforcement on county roads; • Traffic law enforcement (work zone speed limits, etc.) • Accident Investigations and associated legal work • If provided non-traffic law enforcement services, make efforts to substantiate the percentage assignments. • Good internal accounting procedures to insure supportable cost data.

15. Impacts of Diversion • RCW 36.79.140: “Only those counties that during the preceding twelve months have spent all revenues collected for road purposes only for such purposes, including traffic law enforcement, … are eligible to receive funds from the rural arterial trust account…” • Exempt counties < 8,000 and counties with voter approved action (RCW 84.55.050) • Risk losing eligibility for RAP funds, regardless whether a county is using capital “D” diversion or small “d” diversion • Loss of Certificate of Good practice and may jeopardize its gas tax revenues

16. Certification of Road Levy • CRABoard responsible for county eligibility for Rural Arterial Program funds • Counties submit a Road Levy Certification Form • Rate and amount of the road levy • Rate and amount for traffic law enforcement in accordance with RCW 36.33.220 • Rate and amount for any other purposes or service to be provided in the unincorporated area of the county (WAC 136-150-021) • See RCW 36.79.140 for details

17. Certification of Road Levy Expenditures • Certification of Road Levy Expenditures form must be submitted if: • “Diverting” funds for traffic law enforcement • Wants to remain eligible for RAP funds • No special accounting requirements for expenditures • Signed by county sheriff, county auditor, and chair of the board of county commissioners or the county executive

18. WAC References • WAC 136-150-020 Implementing the eligibility requirements • WAX 136-150-021 Ascertaining the road levy • WAC 136-150-022 Ascertaining the expenditures for traffic law enforcement

19. WAC References • WAC 136-150-030 Identifying eligible counties • WAC 136-150-040 Constraint of contract execution • WAC 136-150-050 Certification required