Legislators take notice of small city challenges – Increase limits in two critical areas

This session, legislators took action to raise contract limits helping small cities address unique challenges in their communities.

HB 1086 – Contract limits with community service organizations

Under RCW 35.21.278, cities have had the ability to bypass competitive bidding laws and contract directly with community service organizations on projects to preserve, maintain, and enhance local parks, trails, and open spaces. Since 1988, these contracts have been limited to $25,000 or two dollars per resident within the city limits, whichever is greater.

HB 1086 increases the total annual contract limit to $75,000 or two dollars per resident, whichever is greater. This increase will be beneficial to cities with a population under 12,500 as it will greatly expand the scope of projects with which they can partner with community service organizations.

Examples of potentially allowable projects include: drawing design plans, improving parks and public spaces, providing maintenance services for a facility, building tiny houses for low-income housing.

HB 1577 – Contract limits with municipal officers

The State has always had strict rules regarding when and how municipal officers can directly or indirectly financially benefit from a contract with a local government. One exception to these rules is when the contract falls under a certain dollar limit.

HB 1577 increases contract limits between cities and municipal officers from $1,500 a month to $3,000 a month. This is the first increase to this limit since 1999. Additionally, the bill allows second class cities, towns, or non-charter optional code cities to exceed the $3,000 monthly limit but cannot exceed $36,000 in any calendar year. This increased limit will aid small cities as they respond to emergent needs and issues in their communities.