RCW 82.46.037 discusses the requirements for using REET 2 for maintenance. First, the city would be limited to the greater of $100,000 or 25% of available REET 2 funds not to exceed $1,000,000. REET 2 can be used for:
- Maintenance of REET 2 projects
- Planning, acquisition, construction, reconstruction, repair, replacement, rehabilitation, improvement, or maintenance of REET 1 capital projects that are not also included in the definition of REET 2 capital projects
In order to use REET 2 for these purposes, the city would need to prepare a written report showing the city will have sufficient funding to pay for all of its capital projects. The report must include:
- Information necessary to show compliance with the requirement to have sufficient funding for all capital projects
- How REET 2 revenues were used by the city during the prior two-year period
- How REET 2 revenues were used by the city during the succeeding two-year period
- The percentage of REET 2 funds used for capital project compared to all other sources of capital project funding.
This report must be prepared and adopted as part of the city’s public budget process.
“Maintenance” is defined in RCW 82.46.037 as:
[T]he use of funds for labor and materials that will preserve, prevent the decline of, or extend the useful life of a capital project. "Maintenance" does not include labor or material costs for routine operations of a capital project.
We could not find language in the statute which says REET 2 used for REET 1 maintenance can only be for capital projects that were paid for with REET 1 funds. The statute merely says, “maintenance of capital projects as defined in RCW 82.46.010(6)(b).”
We recommend conferring with your city attorney for their legal opinion on this matter.