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Ask
MRSC is a monthly e-newsletter featuring responses to
selected inquiries received by the consultant staff of the Municipal
Research and Services Center of Washington. Please feel free to
forward this e-mail to your colleagues. If this e-mail was forwarded
to you, get
your own copy - free! |
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What is the compensation
paid to a hospital district commissioner for each meeting attended?
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Each commissioner shall receive $104 for each day or portion of a day spent in
actual attendance at official meetings of the district commission and for other
similar activities (see RCW 70.44.050), not to exceed $9,984 per year, effective
July 5, 2008. How the dollar threshold is determined, however, can be a bit
confusing. The compensation is set by RCW 70.44.050, which, effective July 2007,
set the dollar threshold at $90 per day, with compensation for each commissioner
not to exceed $8,640 per year. RCW 70.44.050 also requires the state office of
financial management (OFM) to adjust the dollar threshold for inflation every
five years, beginning July 1, 2008, based upon the CPI during that period. OFM
is required by RCW 70.44.050 to calculate the new threshold and transmit it to
the office of the code reviser for publication in the Washington State Register
at least one month before the new threshold is to take effect. Here, in
accordance with RCW 70.44.050, and as explained in the Washington State Register
at WSR
08-11-127, OFM submitted for publication the new threshold, which is $104
per day with a new annual compensation limit of $9,984. The new dollar threshold
took effect July 5, 2008. WSR 08-11-127 also explains how the new threshold was
calculated based upon the CPI from April 2003 to April 2008. As stated in RCW
70.44.050, OFM is required to adjust the threshold for inflation every five
years, beginning July 1, 2008, meaning that a new threshold is scheduled to come
into effect in July 2013.
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Must a hospital district sell surplus real property by competitive bid?
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No. The sale of real property by a hospital district is governed by the procedures
in
RCW 70.44.300, and those procedures do not include a requirement that the
sale be by competitive bid. |

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Are there certain notice requirements for budget hearings?
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Reference should be made to
RCW 70.44.060(6) which provides in part:
(6) . . . The superintendent shall prepare a proposed budget of the contemplated
financial transactions for the ensuing year and file the same in the records of
the commission on or before the first day of November. Notice of the filing
of said proposed budget and the date and place of hearing on the same shall be
published for at least two consecutive weeks, at least one time each week, in a
newspaper printed and of general circulation in said county. On or before
the fifteenth day of November the commission shall hold a public hearing on said
proposed budget at which any taxpayer may appear and be heard against the whole
or any part of the proposed budget. Upon the conclusion of said hearing, the
commission shall, by resolution, adopt the budget as finally determined and fix
the final amount of expenditures for the ensuing year. Taxes levied by the
commission shall be certified to and collected by the proper county officer of
the county in which such public hospital district is located in the same manner
as is or may be provided by law for the certification and collection of port
district taxes. The commission is authorized, prior to the receipt of taxes
raised by levy, to borrow money or issue warrants of the district in
anticipation of the revenue to be derived by such district from the levy of
taxes for the purpose of such district, and such warrants shall be redeemed from
the first money available from such taxes when collected, and such warrants
shall not exceed the anticipated revenues of one year, and shall bear interest
at a rate or rates as authorized by the commission. (our emphasis)
So, published
notice is required and a posted notice is not. If the district chooses to also
provide posted notice, it certainly may do so, although there is no particular
schedule that must be met (assuming the required published notice has been
given). We suggest that the notice be posted several weeks in advance too,
allowing the public a greater opportunity to arrange their attendance at the
hearing, if they choose to attend.
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May commissioners and superintendents of a hospital district attend a dinner sponsored by a private business and receive a free dinner?
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There is no problem with attending a meeting sponsored by a private vendor to
explain a service or product they want to sell. The legal issue is raised by the
provision of the free dinner for all attendees.
RCW 42.23.070(2) provides that no municipal officer may receive, directly or
indirectly, any gift or gratuity from anyone except their employing municipality
for any matter connected with their official services. Technically, a free
dinner is a gift or gratuity that is being provided by a private party and there
is a potential violation of this provision.
Having said that, a "de minimis" rule is usually applied that allows a public
official to accept something that has very limited value. A banquet dinner
normally would fall within this "de minimis" rule. The state statutes on ethics
that apply to state officials actually contain an exemption for items or gifts
that have a value of less than $50, and we presume a dinner would be less than
this amount. See
RCW 42.52.150. Unfortunately, there is not a similar provision in the
statute that relates to local government officials but the same principle
arguably could apply.
So there may
be a technical violation but it is unlikely to be significant enough to warrant
any kind of finding or action by the Office of the State Auditor. You are in a
better position to judge the political landscape as to whether this is likely to
cause any kind of public relations problem.
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Whether a hospital is exempt from property taxes.
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Nonprofit hospitals and hospitals owned and operated by public hospital districts
are exempt from property taxes.
RCW 84.36.040. There is an issue, however, as to whether that exemption
applies to property used for outpatient facilities. See DOR "Property Tax
Special Notice" on "Property
Tax Exemption for Nonprofit Hospitals, Proposed Revision of the Washington
Administrative Code 458-16-260" dated March 6, 2009. DOR’s rule limits the
exemption to areas that are exclusively used for inpatient care, while the Board
of Tax Appeals has ruled in two cases that specific areas used by outpatients in
the two hospitals were exempt. One case was appealed to superior court and
upheld. DOR is now proposing to amend its "rule to remove the conflict between
WAC 458-16-260 and the court’s decision with regard to the inpatient/outpatient
test."
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If county-wide hospital district levies a 50 cent/$1000 assessed value tax under RCW 84.52.060 for emergency medical services, may the city levy one as well?
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No.
RCW 84.52.069(6) provides in part:
No other
taxing district may levy a tax under this section if another taxing district has
levied a tax under this section within its boundaries ... |

© 2010 Municipal Research & Services Center of Washington
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