Title 17
LOCAL IMPROVEMENTS

Chapters:

17.04 Definitions and Authority

17.08 Procedures for Assembly-Initiated L.I.D.’s

17.12 Procedures for Petition-Initiated L.I.D.’s

17.16 Provisions Applicable to All L.I.D.’s

17.20 Assessments

17.24 Special Assessment District Bonds

17.28 Local Improvement Guaranty Fund

17.32 Local Improvement District Revolving Fund

NOTE: Footnotes are numbered throughout the text and are located at the end of this title.

Chapter 17.04
DEFINITIONS AND AUTHORITY

Sections:

17.04.010 Definitions.

17.04.020 Authority.

17.04.010 Definitions.

For the purposes of this title, the following words shall have the following meanings:

A.  “Assessment” or “assessments” means the assessments appearing on each local improvement district assessment roll and shall include the installments thereof and any interest and penalties required to be paid thereon;

B.  “Cost or costs of improvement” includes all costs of the L.I.D. including but not limited to:

1.   The cost of acquisition of materials and the cost of construction of the improvements, and

2.   Reasonable allowance for contingencies, and

3.   Acquisition, overhead, engineering, surveying, costs of issuing bonds, costs of mailing and publishing notice, legal and all other incidental costs;”Actual costs of improvements” means the known costs of an L.I.D. after completion of construction and when all related costs have been ascertained;

C.  “Assembly-initiated improvement district” also known as “assembly-initiated L.I.D.” means an L.I.D. established and financed according to the provisions of AS Sections 29.46.010 through 29.46.030 (except without issuance of special assessment bonds), along with such modifications of the provisions applicable to the city and borough as the assembly-initiated L.I.D. may enact by ordinance under its home rule powers. Descriptively, an assembly-initiated L.I.D. is initiated by the assembly, with notice given to the owners of the property within such district of their opportunity to object to the creation of such L.I.D.;

D.  “Current assessed value of all property within the district” includes all property whether taxable or not. The value of property of the United States, the state of Alaska, the city and borough or any other public or private corporation, associate or individual whose property is not assessed for general taxes shall be computed according to the standards afforded by similarly situated property which is assessed for general taxes, and shall be included in determining the current assessed value of all the property within the district;

E.  “Local improvement district, also known as L.I.D.” means a specific area within the city and borough specially benefited by any public improvements as may be authorized by law and that is established and financed by any of the procedures specified herein for assembly-initiated L.I.D.’s, petitioned L.I.D.’s, and special assessment districts. The term “L.I.D.” is a general term and includes any of the specific types of improvement districts as further defined in this section;

F.  “Owner” means all owners of legal title of record in the district recorder’s office at Sitka, Alaska to each lot, tract, or parcel of land in any L.I.D., and in addition includes the purchasers of record of an equitable interest under a contract for deed, purchase contract or like instrument whereby legal title is delivered upon final payment. For the purposes of this title, trustees and beneficiaries of deeds of trust and real estate mortgages or leaseholders are not included in the definition of “owner”;

G.  “Petitioned local improvement district, also known as petitioned L.I.D.” means an L.I.D. established and financed according to the provisions of AS Sections 29.46.010 through AS 29.46.030, along with such modifications of the provisions applicable to the city and borough as the assembly may enact by ordinance under its home rule powers. Descriptively, a petitioned L.I.D. is initiated by a petition of the property owners within the proposed district requesting the acquisition, construction and/or installation of certain public improvements and containing a statement of the estimated cost thereof and the proposed payment terms, which is presented to the assembly for further action;

H.  “Property” means land and any improvements attached thereto;

I.  “Special assessment districts” means those assembly-initiated L.I.D.’s and petitioned L.I.D.’s for which the issuance of special assessment district bonds is authorized to pay part or all of the costs thereof.

A duly created assembly-initiated L.I.D. or petitioned L.I.D. may be changed to a special assessment district as provided in Section 17.04.020(C).

(Ord. 86-68  4 (part), 1986: Ord. 74-163  3 (part), 1974: S.C.C.  3-9-1.)

17.04.020 Authority.

A.  L.I.D.’s. The assembly shall have the power to create and establish an L.I.D. for purposes of acquiring, installing, or constructing capital improvements, and to levy assessments against properties specially benefited thereby to pay part or all of the costs thereof according to the procedures set forth in AS Sections 29.45.010 through 29.46.120, and as the same may be modified by ordinance of the city and borough.

B.  Special Assessment District Bonds. To pay any part or all of the costs of improvements in any special assessment district, the assembly may include in the ordinance creating such special assessment district provisions authorizing the issuance and sale of bonds thereof. The principal of and interest on such bonds shall be payable solely from special assessments levied against the property in such district benefited by such improvements and from the local improvement guaranty fund of the city and borough, and the bonds and the ordinance authorizing them shall include (but not be limited to) provisions requiring the following:

1.   That the assessments levied therein shall constitute a sinking fund for the payment of the principal of and interest on such bonds;

2.   That the property benefited by such improvements may be pledged to secure such payment, and the lien so created thereon shall constitute a lien on such property junior only to real property taxes and any prior assessments.

C.  Change of an Existing L.I.D. to a Special Assessment District. At any time after an assembly-initiated or petitioned L.I.D. is created, if the assembly decides it is in the public interest to change the status of the existing district to a special assessment district and then issue special assessment district bonds, it may do so by ordinance; provided, however, that this may not be done in the case of petitioned L.I.D.’s where the petition provides that the assessments to be levied therein should all be paid in one payment due within six months of completion.

(Ord. 86-688  4 (part), 1986; S.C.C.  3-9-2.)

Chapter 17.08
PROCEDURES FOR ASSEMBLY-INITIATED L.I.D.’S

Sections:

17.08.010 Resolution of intention.

17.08.020 Notice.

17.08.030 Hearing.

17.08.040 Objections.

17.08.050 Ordinance creating district.

17.08.010 Resolution of intention.

Upon the decision of the assembly to create an assembly-initiated L.I.D., it shall adopt a resolution of intention declaring its intention to order the improvements to be acquired, constructed, and installed therein, which resolution shall also set forth a general description of the improvements to be ordered, a description of the boundaries of the proposed L.I.D., and state whether or not the city and borough proposes to issue special assessment district bonds to pay such cost.

The resolution shall fix the time, date and place of a hearing thereon, and at such hearing there shall be on file and open to all persons attending the same a map or diagram showing thereon the lots, tracts and parcels of land which will be specially benefited by the proposed improvement and a statement setting forth:

A.  The estimated cost of such improvements;

B.  The estimated proportion of such costs to be borne by the property specially benefited by such improvements, and the source of any other money needed to pay the balance of such cost;

C.  The estimated amount of such cost to be borne by each lot, tract or parcel of land;

D.  A statement of the L.I.D. assessments outstanding and unpaid against the property in the proposed district;

E.  A statement of the current assessed value of the real property within the proposed district and a statement of the current assessed valuation of the improvements thereon according to the valuations last placed upon such property and improvements for the purposes of general taxation.

(S.C.C. § 3-9-3.)

17.08.020 Notice.

A.  Published Notice. Notice of such hearing shall be published at least once a week for two consecutive weeks in a newspaper of general circulation throughout the city and borough with the first publication to be at least sixty days prior to the date set for such hearing if special assessment bonds are to be issued. If special assessment bonds are not to be issued to pay the cost of improvements, then the date of first publication and mailing of such notice may be not less than ten days prior to such hearing date and such published notice need only be published once. The notice shall contain a statement of the following:

1.   A general description of the improvements to be ordered and a description of the boundaries of the proposed L.I.D.;

2.   A statement of the estimated cost of the proposed improvements and the estimated proportion of such cost to be borne by the property specially benefited thereby;

3.   That a map or plat showing thereon the lots, tracts and parcels of land which will be specially benefited by the proposed improvement, the proposed assessment schedule and the proposed assessment against each such lot, tract or parcel of land is on file for public inspection at the office of the finance director;

4.   Whether special assessment district bonds will be issued and sold to provide funds to pay the cost of improvements;

5.   The time, date and place of such hearing, and that owners of any property within the proposed district may file a written objection to the creation of such district and the ordering of the work to be done therein with the finance director up to the time of hearing.

B.  Mailed Notice. Notice of such hearing shall also be mailed to all owners within the proposed district according to the property tax roll of the city and borough at the last address shown thereon, at least sixty days prior to the date set forth such hearing if special assessment bonds are to be issued. If special assessment bonds are not to be issued to pay the cost of improvements, then the notice shall be mailed not less than ten days prior to such hearing date. Such notice shall contain, in addition to the items required to be set forth in the published notice:

1.   A description of each lot, tract or parcel of land owned by the owner and the estimated assessment to be levied against each such property;

2.   The estimated payment schedule of such assessment;

3.   A statement that the assessment proposed to be levied against each such lot, tract or parcel of land is an estimated amount and that when actual costs are known they will be assessed against all of the real property in the L.I.D. in accordance with the benefits received.

(Ord. 86-688 § 4 (part), 1986; S.C.C. § 3-9-4.)

17.08.030 Hearing.

At such hearing the assembly shall hear objections from any owner affected by the formation of such district, and may make such changes in the proposed boundaries thereof or such modifications in the plans for the proposed improvements to be constructed as shall be deemed necessary provided that the assembly may not change the boundaries of such district to include property not previously included therein without first passing a new resolution of intention and giving a new notice to owners in the manner and form and within the time herein provided for the original notice. (S.C.C. § 3-9-5.)

17.08.040 Objections.

After the hearing the assembly shall have jurisdiction to overrule protests and proceed with any such improvements, provided that the authority of the city and borough to so proceed shall cease if written objections are filed with the finance director at or prior to the time, date and place set for such hearing by the owners of property bearing fifty percent or more of the estimated assessments unless the assembly revises such plan of improvements. After the assembly revises the plan it shall, if it determines to proceed with the improvements under the revised plan, readvertise and renotice the proposed improvements and hold another hearing thereon, and be subjected to the same limitations as required in the first instance, and so on until the objections have been reduced to less than the fifty percent referred to above. Exception: If the owners of property bearing fifty percent or more of the estimated assessments agree in writing to any revised plan, there shall be no need to readvertise or hold further hearings and the assembly may proceed with the revised plan. (Ord. 86-688 § 4 (part), 1986: S.C.C. § 3-9-6.)

17.08.050 Ordinance creating district.

If, as, and when the assembly finds that the district should be formed, it shall by ordinance, or by resolution if special assessment district bonds are not to be issued, find that the creation of such L.I.D. is in the public interest, and create such district, describe the boundaries thereof, describe the improvements to be acquired, constructed and installed therein, declare the estimated cost thereof, declare the proportionate amount of the funds of the city and borough, if any, to be applied thereto and order such work to be done. If necessary, such ordinance or resolution shall authorize the acquisition of all land necessary for such improvements, the payment of all damages caused thereby and the commencement in the name of the city and borough of such eminent domain proceedings and assessment proceedings required to pay all eminent domain awards as may be necessary to enable the city and borough to proceed with the work. (S.C.C. § 3-9-7.)

Chapter 17.12
PROCEDURES FOR PETITION-INITIATED L.I.D.’S

Sections:

17.12.010 Petition.

17.12.020 Qualifying certificates.

17.12.030 Notice.

17.12.040 Time of notice.

17.12.010 Petition.

An L.I.D. may be initiated by a petition presented to and filed with the finance director. Such petition shall be signed by all the owners of at least fifty percent in current assessed valuation of the property to be specially benefited by the improvements petitioned for. No signatures may be withdrawn from such petition after passage of an ordinance authorizing the L.I.D. Names and addresses of owners of record within the proposed district not signing such petition shall be listed thereon. Such petition shall contain the following:

A.  A description of the specific improvements to be acquired, constructed or installed, with an estimate of the cost thereof;

B.  A description of the boundaries of such proposed district or a listing of all the lots, tracts and parcels of land to be included therein, and a map or diagram of the proposed district with an inset showing the location thereof with relation to the city and borough as a whole shall be attached to such petition;

C. A statement of whether or not the proposed assessments should all be paid in one payment or be paid in installments (stating the installment plan proposed, but not to exceed twenty years), and if the latter, whether or not it is proposed that special assessment district bonds be issued. (Ord. 86-688 § 4 (part), 1986: S.C.C. § 3-9-8.)

17.12.020 Qualifying certificates.

A.  Certificate of Finance Director. Within five days (excluding Sundays) from the filing of such petition with the finance director, the finance director shall attach a certificate (to be known as the “qualifying certificate”) to the petition, stating the percentage in current assessed valuation of the property within the proposed district owned by the person or persons signing such petition.

If such qualifying certificate shows that the petition is signed by all the owners of at least fifty percent in current assessed valuation of the property to be specially benefited by such improvement, and if the assembly determines that the improvement requested is necessary, financially feasible, and in the public interest and should be made, it shall pass an ordinance or a resolution if special assessment district bonds are not to be issued, containing its findings on such questions, which ordinance or resolution shall also contain all of the provisions required for ordinances or resolutions creating assembly-initiated L.I.D.’s as set forth in Section 17.08.050 hereof.

B.  Engineers Certificate. Within ten days from the filing of such petition the municipal engineer shall attach a certificate stating his estimate of the total ultimate cost of the improvements contemplated.

(S.C.C. § 3-9-9.)

17.12.030 Notice.

Within ten days (excluding Sundays) after the adoption of such ordinance or resolution, the finance director shall mail a copy of the petition (omitting the signatures thereon if desirable) to each of the nonsigning property owners within the proposed district, together with a notice stating that a map or diagram of the proposed district and the improvements to be constructed therein and the proposed assessment schedule and the proposed assessment against each lot, tract or parcel of land which will be specially benefitted by the proposed improvement, are on file in his office and available for public inspection. (S.C.C. § 3-9-10.)

17.12.040 Time of notice.

Any period of time required to elapse between the time of giving notice of a hearing and the time of such hearing shall commence with the date such notice was published or mailed, and shall end on the day prior to the date of such hearing. Any publisher’s affidavit of publication of such notice and the affidavit or certificate of the finance director or any other municipal official or agent stating the date of mailing or such notice shall be conclusive as to such date of publication and mailing. (S.C.C. § 3-9-10.)

Chapter 17.16
PROVISIONS APPLICABLE TO ALL L.I.D.’S

Sections:

17.16.010 Area.

17.16.020 Change in district boundaries.

17.16.040 Extra costs.

17.16.050 Unanticipated costs.

17.16.060 L.I.D. funds.

17.16.070 Warrants.

17.16.080 Surplus moneys.

17.16.010 Area.

An L.I.D. may include adjoining, vicinal or neighboring streets, avenues and alleys even though the improvements thus made are not connected or continuous as long as there is no more than two thousand five hundred feet between continuous units; provided that the cost and expense of each continuous unit of the improvement may be ascertained separately as near as may be, and if so ascertained separately the assessment rates shall be computed on the basis of the cost and expense of each unit. (S.C.C. § 3-9-12.)

17.16.020 Change in district boundaries.

The assembly may at any time at its discretion, by ordinance, eliminate from the district any unit of the improvement which is not completed and may proceed with the construction of the balance of the improvements within the district as fully and completely as though the eliminated unit had not been included within the district; provided, however, that the assessments to be levied to pay part of all of the costs of the improvements actually constructed may be levied only against the properties within such district specially benefitted thereby.

A.  Notice of Hearing. The assembly shall by resolution fix a time, date and place for a hearing on the question of whether or not it should abandon the acquisition, construction and installation of a portion of the improvements. Notice of such hearing shall be published once, at least ten days prior to the date of hearing, in a newspaper of general circulation within the city and borough, and shall be mailed at or prior to the same time to all owners of property within such district. Such notice shall state the proposed assembly action and shall also require that any owner who objects thereto should file a written notice of that objection with the finance director at or prior to the hearing.

B.  Hearing. At the time of the hearing the assembly shall hear all such protests and all evidence material to the question of whether or not the completion of such improvements should be abandoned and after considering the same the assembly shall then decide whether or not to so abandon a portion of the improvements. In the event that written objections to such proposed abandonment are filed by the owners of property in the district bearing more than fifty percent of the current assessed valuation of all of the property within the district, as well as fifty percent of the owners of property within the area proposed to be abandoned, the assembly shall proceed to complete the construction of the improvements originally authorized in such district. In the event protests equalling such fifty percent are not filed and the assembly decides that the portion of such improvements should not be completed, the costs of improvement incurred to the time of such abandonment shall be assessed only against such property within such district specially benefitted by the improvements actually completed.

(S.C.C. § 3-9-13.)

17.16.040 Extra costs.

Any part of the cost of improvements not authorized by ordinance to be paid from assessments shall be paid by the city and borough or from any grants which it has or may later have on hand and available for such purpose. (S.C.C. § 3-9-15.)

17.16.050 Unanticipated costs.

A.  Construction by Contractor or Contractors.

1.   When the improvements in any L.I.D. are to be acquired, constructed and installed by a contractor or contractors, and if it appears after consideration of the contract cost plus all other costs of improvements that the total cost of improvements will exceed the estimated cost as it appears in the approving resolution or ordinance, by twenty percent or more, then at least fifteen days before the notice to proceed is given the contractor or contractors the finance director of the city and borough shall give notice of such estimated increased cost by certified mail to the owners of the lots, tracts and parcels of land within the district at their last known address, and shall also publish, on or before the same date, a similar notice at least once in a newspaper of general circulation in the city and borough;

2.   The mailed and published notice shall state the amount, and percentage, of total cost of the expected additional charges over the last complete estimated cost, and shall further state that unless written objections to the city and borough’s ordering the contractor or contractors to proceed are filed with the finance director by the owners of property within the district bearing fifty percent or more of the estimated cost of the improvements to be paid from assessments within ten days from the date of the mailing and publishing of such notice, the contractor or contractors will be ordered to proceed, and that the estimate of costs as increased shall be the cost of improvements until all actual costs after completion are known;

3.   In the event such written objections are so filed by the owners of property within the district bearing fifty percent or more of the estimated cost of the improvements to be paid from assessments, then no notice to proceed shall be given the contractor and further work on the project shall cease. The city and borough shall bear the costs of the project to date of termination;

4.   There shall be no liability on the part of the city and borough to the contractor until a notice to proceed is given; but once given, the project shall proceed regardless of unforeseen costs (all of which shall be deemed costs of improvements) subject to the provisions of subsection (3).

B.  Construction by Force Account.

1.   When the improvements in any L.I.D. are to be acquired, constructed and installed by a crew of the city and borough or by city and borough force account, then within thirty days after the commencement of the work the director of public works of the city and borough shall file with the finance director a certificate stating whether in his estimation the total cost of improvements will be twenty percent or more in excess of the last complete estimate of cost. If he determines that the new estimate of cost is twenty percent or more over such last complete estimate, then a similar notice as required in subsection (A) shall be given to the owners of the lots, tracts and parcels of land within the district at the same time and in the same manner as provided in subsection (A).

2.   In the event written objections are so filed by the owners of property within the district bearing fifty percent or more of the estimated cost of the improvements to be paid from assessments, work on the project shall cease until one of the following alternatives shall be undertaken by the assembly:

a.   The assembly by resolution determines that the city and borough shall pay any additional costs of the improvements greater than twenty percent over the previous estimate of the assessments,

b.   The improvement work performed to date of cessation shall be continued only to such extent as to put the area under construction in no worse condition than it was before construction started, with all costs of such continuance of work to be paid for by the city and borough, but costs prior to date of the filing of such objections from owners of property bearing fifty percent or more of the estimated costs of improvements shall be considered L.I.D. costs and assessed according to the original resolution or ordinance creating such L.I.D.,

c.   Should at any time under either force account projects or projects constructed under contract it appear to the city and borough’s director of public works that the total cost of the improvements will exceed by more than fifty percent the estimated costs of improvements as estimated at the time the force account work was begun or at the time the notice to proceed was given, then further work shall cease until notice and opportunity to object are given the property owners as provided in subsection (A) above. The procedures for proceeding with the project, the payment of costs to date of cessation and the obligation to put the area under construction in no worse condition than it was before construction started shall also be as stated in subsections (a) and (b) above.

(Ord. 86-688 § 4 (part), 1986; S.C.C. § 3-9-16.)

17.16.060 L.I.D. funds.

Each L.I.D. of the city and borough shall be given a number in the ordinance or resolution creating the district and each such ordinance or resolution shall create an L.I.D. No. ______ fund. Into such fund shall be paid all receipts pertaining to the L.I.D. including but not limited to proceeds from the sale of warrants, notes and/or bonds, transfers from the city and borough general fund and assessments as paid.

Such fund shall be drawn upon for the purpose of paying construction costs of such L.I.D., redemption of warrants, notes and bonds and the payment of interest thereon.

Within such fund, accounts such as may be necessary, such as construction revenue, bond or note redemption and sinking fund accounts, may be set up. (Ord. 86-688 § 4 (part), 1986: S.C.C. § 3-9-17.)

17.16.070 Warrants.

The city and borough may provide by resolution or ordinance for the issuance of warrants payable out of such L.I.D. fund in payment of the cost and expense of any L.I.D. improvements. The warrants shall bear interest at a rate to be determined by the assembly and shall be redeemed either in cash or by exchange for special assessment district bonds or notes of such district. Such warrants shall be redeemed in order of their number whenever there is enough money in such fund to redeem such lowest number warrant or warrants.

Warrants may be issued to the city and borough general fund when the general fund advances the costs of improvements. (Ord. 86-688 § 4 (part), 1986: S.C.C. § 3-9-18.)

17.16.080 Surplus moneys.

A.  If special assessment bonds or notes have been issued and assessments levied in any L.I.D. based on the estimated cost of the improvements, and if, after actual costs have been ascertained, the total amount of assessments levied exceeds the property owners’ share of the actual costs, plus any delinquency charge to be included in the assessments, by more than one percent, the amount of excess proceeds on hand in such L.I.D. fund shall be utilized to call and redeem as many outstanding bonds or notes of such L.I.D. as possible out of such excess on the next date on which such bonds or notes may be redeemed.

Credit in the amount of the excess shall be given on assessments due, or refunded on assessments previously paid in full, pro rata according to the original principal amounts of such assessments.

B.  If special assessment bonds have been issued for the construction of a L.I.D., all moneys remaining in that L.I.D. fund after all costs of improvements in such district, including the redemption of all warrants, notes and bonds of such district have been paid, shall be paid into the guaranty fund of the city and borough as provided in Section 17.28.020 of this title.

C.  If no special assessment bonds or notes have been issued for the construction of an L.I.D., all moneys remaining in that L.I.D. fund after all costs of improvements in such district, including the redemption of all warrants have been paid, shall be paid into the L.I.D. revolving fund of the city and borough.

(Ord. 86-688 § 4 (part), 1986: Ord. 74-163 § 3 (part), 1974: S.C.C. § 3-9-19.)

Chapter 17.20
ASSESSMENTS

Sections:

17.20.010 Percentage of assessment.

17.20.020 Computation of assessments.

17.20.030 Notice of hearing on computations.

17.20.040 Hearing on computations.

17.20.050 Amendment of assessment roll.

17.20.060 Objections to assessment roll— Timeliness.

17.20.070 Proceedings conclusive— Exceptions.

17.20.080 Procedure on appeal.

17.20.085 New subdivision lots to share L.I.D. assessments.

17.20.090 Reassessments.

17.20.100 Assessments constitute a lien.

17.20.110 Deposit and use of collected assessments.

17.20.120 Notice of assessment.

17.20.130 Payment without interest or penalty.

17.20.140 Payable in installments.

17.20.150 Prepayment of installments.

17.20.160 Assessments against city and borough lots.

17.20.170 Enforcement.

17.20.010 Percentage of assessment.

The assembly may assess up to one hundred percent of the cost of improvements against the property specially benefitted by the improvements acquired, constructed and installed under any L.I.D. (S.C.C. § 3-9-20.)

17.20.020 Computation of assessments.

A.  Assessments against individual lots, tracts and parcels of land shall be in proportion to the benefits received.

B.  All assessments in any L.I.D. shall be uniform for each lot, tract or parcel of land within such district similarly situated.

C.  In the event all the lots, tracts, or parcels of land in any L.I.D. are substantially equal in size and are substantially equal in distance from the improvements constructed therein and the benefits derived by each such lot, tract or parcel of land are substantially equal to the benefits derived by every other lot, tract or parcel of land within the district, then the total assessment roll may be apportioned equally among all such lots, tracts and parcels of land; otherwise, the assembly shall determine the amount of the individual assessments fixed in any assessment roll on such basis as may be legal, equitable and proper under all the circumstances and the provisions of subparagraphs (A) and (B).

D.  In anticipation of delinquent assessments, there may be added to each separate assessment appearing on each assessment roll a sum not less than three percent nor greater than ten percent of such assessment. The charge shall constitute a reserve to be used only if payment of assessments becomes delinquent to the extent that any amount due on debt incurred by the city and borough for financing the property owners’ share of the L.I.D. in question cannot be met as they become due. Any balance remaining in the reserve after all debt incurred relative to the L.I.D. in question has been repaid shall be refunded pro rata to the then owner of the lot as shown on the property tax roll for the year in which the refund is declared. No such refund shall be in an amount greater than the original charge assessed to that lot.

E.  Assessments levied in any L.I.D. may be levied against properties of the United States of America, the state of Alaska, and the city and borough, and the assessments levied against all properties of the city and borough shall have a lien thereon and shall be collectible as assessments levied against properties of owners except where prohibited by law. Should it appear for any reason that the assessments levied against properties of the United States of America, the state of Alaska or the city and borough are uncollectible, such assessments shall not be counted in the computation of the final assessment roll of any L.I.D., and if any such assessments are collected the same shall be paid into the fund of such L.I.D. as are all other assessments.

F.  The total assessment thus ascertained against each separate lot, tract or parcel of land in each L.I.D. shall be entered upon the assessment roll or rolls of the district as the amount to be levied and assessed against each such separate lot, tract or parcel of land.

G.  A leasehold interest of the United States of America, the state of Alaska, or the city and borough shall be deemed real property for the purpose of L.I.D. assessments; provided, in the case of the leasehold interest of the city and borough, such lease must have at least twenty years remaining. In the event there should be less than twenty years of the lease remaining the lessee shall be liable for one-twentieth of the assessment against the property so leased per year of the remaining leasehold term, and the lessor shall be liable for the balance of such assessment.

(Ord. 86-688 § 4 (part), 1986; Ord. 81-495 § 4(B), 1981; S.C.C. § 3-9-21.)

17.20.030 Notice of hearing on computations.

When the assessment roll or rolls for any L.I.D. has or have been prepared as provided by law and herein, the same shall be filed with the finance director. The assembly shall then fix a date for a hearing thereon. A notice of such hearing shall be published at least once a week for two consecutive weeks in a newspaper of general circulation throughout the city and borough and the date of the first publication thereof shall be at least fifteen days prior to the day on which the hearing will be held. Notice of such hearing shall also be mailed by certified mail at least fifteen days prior to such hearing date to each owner or owners of the lots, tracts or parcels of land listed on the assessment roll at the address last shown on the property tax rolls of the city and borough.

A.  Contents of Published Notice. The published notice of such hearing shall specify the number of the L.I.D. and a short statement of the nature of the improvements therein and shall contain any other information deemed relevant by the assembly or the finance director, and shall notify all persons who may desire to object to such assessment roll or any of the separate assessments appearing thereon:

1.   To make their objections in writing and to file them with the finance director at or prior to the time fixed for the hearing.

2.   That at the time and place fixed for such hearing and at times to which the hearing may be adjourned the assembly will sit as a board of equalization for the purpose of considering the roll and the separate assessments appearing thereon, and

3.   That at the hearing or the times to which it may be adjourned the assembly will consider the objections made and will correct, revise, raise, lower, change or modify the roll or any part thereof, or set aside the roll and order the assessment to be made de novo, and at the conclusion of such hearing or hearings will confirm the roll by ordinance or resolution;

B.  Contents of Mailed Notice. The mailed notice of such hearing shall contain all of the statements and information required for the published notice and in addition thereto shall also contain a description of each lot, tract or parcel of land owned by the owner to which it is addressed being assessed, and the amount of the proposed assessment against each such property;

C.  Proof of Mailing. Proof of mailing of the notice shall be made by the finance director filing a certificate with the assembly to the effect that on the date in question he mailed by certified mail notices of such hearing. Such certificate shall be conclusive as to the date of mailing.

(Ord. 86-688 § 4 (part), 1986; Ord. 74-163 § 3 (part), 1974: S.C.C. § 3-9-22.)

17.20.040 Hearing on computations.

At the time fixed for hearing objections to the confirmation of the assessment roll and the separate assessments appearing thereon and at the times to which the hearing may be adjourned, the assembly may correct, revise, raise, lower, change or modify the roll or any part thereof, or set aside the roll and order the assessments to be made de novo, and at the conclusion thereof confirm the roll by ordinance or resolution. (S.C.C. § 3-9-23.)

17.20.050 Amendment of assessment roll.

If any assessment roll is amended so as to raise any separate assessment appearing thereon or to include omitted property, a new time, date and place for hearing shall be fixed and new notices of hearing on the roll shall be given as in the case of an original hearing; provided, that as to any property originally entered upon the roll the assessment upon which has not been raised, no objections to confirmation of the assessment roll shall be considered by the assembly or by any court on appeal unless the objections were made in writing at or prior to the time fixed for the original hearing upon the assessment roll. A new hearing and notice is not required if all record owners of property subject to the increased assessment consent in writing to the increase. (Ord. 86-688 § 4 (part), 1986: S.C.C. § 3-9-24.)

17.20.060 Objections to assessment roll— Timeliness.

All objections to the confirmation of the assessment roll or any of the separate assessments appearing thereon shall be in writing and shall state clearly the grounds of objections. Objections not made in writing and not filed with the finance director at or prior to the time of the original hearing shall be conclusively presumed to have been waived. (S.C.C. § 3-9-25.)

17.20.070 Proceedings conclusive— Exceptions.

Whenever any assessment roll for local improvements in any L.I.D. has been confirmed by the assembly, the regularity, validity and correctness of the proceedings relating to the improvements therein and to the assessments therefor including the action of the assembly upon the assessment roll and the confirmation thereof shall be conclusive in all things upon all parties. They cannot in any manner be contested or questioned in any proceeding by any owner unless he filed written objections to the assessments roll or any separate assessment appearing thereon in the manner and within the time required by the preceding provisions of this chapter and unless he prosecutes his appeal in the manner and within the time hereinafter required. (S.C.C. § 3-9-26.)

17.20.080 Procedure on appeal.

A.  Perfecting Appeal. The decision of the assembly upon any objections made in the manner and within the time herein prescribed shall be final and conclusive, subject, however, to review by the Superior Court of the state of Alaska in an appropriate action brought by the owner in the judicial district in which the city and borough is located.

Such action must be commenced within sixty days of the effective date of the ordinance or resolution confirming the assessment roll or shall be barred.

B.  Bond. At the time of filing the action with the clerk of the Superior Court the owner shall execute and also file with him as cash or property a bond for costs and attorneys’ fees in an amount of not less than one thousand dollars. If the matter is decided against the appellant, the bond shall be used to cover the city and borough’s costs and attorneys’ fees. A copy of the bond shall be filed with the finance director. The municipal attorney shall have ten days from such filing to object to the adequacy of the bond either as to form or sureties.

(Ord. 86-688 § 4 (part),1986: S.C.C. § 3-9-27.)

17.20.085 New subdivision lots to share L.I.D. assessments.

A.  If during the period set for paying assessments, a lot within a local improvement district is subdivided, the lots created by the new subdivision will be reassessed in proportion to the benefits received reduced proportionately by the number of years in which the original assessment has been in effect. If the reassessed obligation exceeds the amount owed by the original parcel, all assessments for the improvement district shall be adjusted accordingly. The assessment of newly created lots will be based upon their proportionate benefit calculated against the entire number of lots in the local improvement district.

B.  The reassessment of the lots to be created shall be a condition of any proposed subdivision in any local improvement district for which the payment period has not concluded.

C.  Zero lot line subdivisions, as defined and regulated in Title 21 of the Sitka General Code, are specifically included from the requirements of this section.

(Ord. 97-1453 § 4, 1997.)

17.20.090 Reassessments.

Whenever an assessment authorized as provided herein is set aside, annulled or declared void, or its enforcement refused by a court of competent jurisdiction, whether directly or by virtue of a decision of such court, the assembly may by ordinance or resolution make a new assessment or reassessment upon the lots, tracts or parcels of land benefited by the improvement for which such assessment was levied, in the manner provided by AS 29.46.060 through 29.46.120, and along with such modifications of the provisions applicable to the city and borough as the assembly has provided herein or may later provide by ordinance under its home rule powers. (Ord. 86-688 § 4 (part), 1986: S.C.C. § 3-9-28.)

17.20.100 Assessments constitute a lien.

Each assessment shall be a lien upon the lot, tract or parcel of land assessed from the time such assessment roll is confirmed. Such lien shall be paramount and superior to any other lien created before or after such date except liens for real property taxes and any prior special assessments. (Ord. 86-688 § 4 (part), 1986: S.C.C. 3-9-29.)

17.20.110 Deposit and use of collected assessments.

All assessments for any improvements acquired, constructed or installed in any L.I.D. shall be collected by the finance director, shall be deposited to the credit of the fund of that L.I.D. thereinbefore required to be created, and shall be used for no other purpose than the redemption of warrants drawn upon and the bonds and notes issued against such fund to provide payment of the cost of improvements of such L.I.D.

In the event the city and borough issues and sells any general obligation bonds for the purpose of acquiring, constructing, installing or making any specific public improvements for which such bonds may be issued and assessments are levied against properties benefited by such improvements, such special assessments shall be used in payment of the principal of and interest on such general obligation bonds. (Ord. 86-688 § 4 (part), 1986: S.C.C. 3-9-30.)

17.20.120 Notice of assessment.

As soon as the assessment roll has been placed in the hands of the finance director for collection, he shall publish a notice in a newspaper of general circulation throughout the city and borough once a week for two consecutive weeks, stating that the roll is in his hands for collection and that all or any portion of any assessment appearing thereon may be paid within thirty days from the date of the first publication of the notice without penalty or interest. The finance director shall also mail a notice to each owner of property that has been assessed in such L.I.D., on or before the second date of such publication, which notice shall designate the property, the assessment amount, the method of payment, the rate of interest on the unpaid balance of assessments, the time of delinquency, and the penalties on delinquent payments.

The finance director shall also mail a similar notice to each such owner of the due date of any annual or semiannual installment approximately ten days prior to such due date. (Ord. 86-688 § 4 (part), 1986: S.C.C. § 3-9-31.)

17.20.130 Payment without interest or penalty.

The owner of any lot, tract or parcel of land charged with an L.I.D. assessment may redeem it from all or any portion of the lien of such assessment by paying to the finance director all or any portion thereof without interest within thirty days after the first publication by the finance director of notice that the assessment roll is in his hands for collection. If payment of assessments is to be made in one sum, payment may not be required sooner than sixty days after mailing notice of the assessments to the property owners. (Ord. 86-688 § 4 (part), 1986: S.C.C. § 3-9-32.)

17.20.140 Payable in installments.

In all cases where assessments are to be paid in installments the ordinance or resolution confirming the assessment roll and the separate assessments appearing thereon and levying such assessments shall provide that the sum charged against any lot, tract or parcel of land or any portion of such sum may be paid during the thirty day period allowed for the payment of assessments without penalty or interest, and that thereafter the sum remaining unpaid may be paid in equal annual or semiannual installments over the period of years fixed in such ordinance or resolution. Such period of years may never exceed twenty years. The number of installments shall be less by two than the number of years which any bonds issued to pay for the improvement are to run. Such ordinance or resolution shall fix the annual or semiannual dates on which such installments or portions thereof become due. Interest on the whole amount of the assessment unpaid, at the rate fixed by such ordinance or resolution, shall be due on the annual or semiannual dates fixed for payment of such installments. Such ordinance or resolution shall also provide that assessments or installments thereof when delinquent, in addition to such interest, shall bear a penalty of not more than a rate to be determined by the assembly. (Ord. 86-688 § 4 (part), 1986: Ord. 81-495 § 4(A), 1981; S.C.C. § 3-9-33.)

17.20.150 Prepayment of installments.

The owner of any lot, tract or parcel of land charged with an L.I.D. assessment may redeem it from the lien of the unpaid amount of the assessment at any time after such thirty-day period by paying the remaining balance thereof to the finance director with interest thereon to the date that the next installment of such assessment becomes due. (S.C.C. § 3-9-34.)

17.20.160 Assessments against city and borough lots.

The city and borough shall include in its annual budget an amount sufficient to pay when due assessments levied against all lands belonging to the city and borough. (S.C.C. § 3-9-35.)

17.20.170 Enforcement.

When an assessment is payable in installments the enforcement of the lien of any installment shall not prevent the enforcement of the lien of any subsequent installment. Assessment or installments thereof shall become delinquent the day after they were due, and the enforcement of the collection thereof shall be made in the same manner as the enforcement of collection of real property taxes.

(S.C.C. § 3-9-36.)

Chapter 17.24
SPECIAL ASSESSMENT DISTRICT BONDS

Sections:

17.24.010 Authority.

17.24.020 Form, content, payment.

17.24.030 Sale.

17.24.040 Redemption.

17.24.050 Nonliability of the city and borough.

17.24.060 Remedy of bondholders and noteholders.

17.24.070 Investment for surplus city and borough funds.

17.24.080 Payment by city and borough for city and borough owned lots.

17.24.090 Interim notes.

17.24.100 Registration.

17.24.010 Authority.

Bonds to be entitled “L.I.D. No. ______, City and Borough of Sitka, Alaska, Bonds” may be issued to provide funds to pay any part or all of the costs of improvements in any special assessment district, provided that such bonds shall not be issued in a total principal amount in excess of such costs of improvement, nor shall they be issued prior to twenty days after the thirty days allowed for the payment of assessments without penalty or interest.

Such bonds shall be issued pursuant to ordinance and shall be made payable on a date not sooner than two years later than the date upon which the last installment of the assessments securing such bonds becomes due and not later than two years six months after the date upon which the last installment of the assessments securing such bonds becomes due. (S.C.C. § 3-9-37.)

17.24.020 Form, content, payment.

Such bonds shall bear interest at a rate per year to be determined by the assembly, payable annually or semiannually, shall be in such denominations as may be provided in the ordinance authorizing their issuance, and shall be numbered from one up consecutively.

Each bond shall:

A.  Be signed by the manual or facsimile signature of the mayor of the city and borough and attested by the manual or facsimile signature of the municipal clerk;

B.  Shall have the seal of the city and borough impressed or reproduced thereon;

C.  Refer to the improvement for which it is issued and the ordinance ordering it;

D.  Provide that the principal amount thereof and the interest thereon shall be payable out of the L.I.D. fund of such district or out of the local improvement guaranty fund of the city and borough and not otherwise;

E.  Provide that the bondholders’ remedy in case of any nonpayment shall be confined to the enforcement of the special assessments levied for the improvements in such L.I.D. and to such guaranty fund.

(Ord. 86-688 § 4 (part), 1986: S.C.C. 3-9-38.)

17.24.030 Sale.

L.I.D. bonds and notes may be issued to the contractor or contractors constructing and installing the improvements in such district, or may be sold by the city and borough at public or private sale, but at a price to be determined by the assembly plus accrued interest. The proceeds of sale of such bonds or notes shall be deposited in the applicable L.I.D. fund and be applied in payment of the costs of improvement either in cash or by the redemption of warrants or other obligations of the city and borough issued to pay such costs. (Ord. 86-688 § 4 (part), 1986: S.C.C. § 3-9-39.)

17.24.040 Redemption.

The finance director shall call in and redeem the principal of one or more bonds of any issue in their numerical order whenever there is sufficient money in the L.I.D. fund against which the bonds have been issued, over and above the amount needed for the payment of current annual interest and the annual interest next to fall due on all unpaid bonds of that issue. Such call shall be made by publication of a notice thereof in a newspaper of general circulation throughout the city and borough as soon as practicable after the day of delinquency of any assessment installments, and in any other manner as may be deemed necessary to advise the holder of the bonds being called of such call. The notice of call shall state the serial number or numbers of the bonds being called, that they will be paid on the next interest payment date, and that interest thereon will cease on such call date. (Ord. 87-757 § 4, 1987; S.C.C. § 3-9-40.)

17.24.050 Nonliability of the city and borough.

Neither the holder nor the owner of any L.I.D. bond, note or warrant issued against an L.I.D. fund, shall have any claim therefor against the city and borough except for payment from the special assessments made for the improvement for which such bond, note or warrant was issued and except for payment from the local improvement guaranty fund of the city and borough as to bonds and notes issued the payment of which is secured by such fund. The city and borough shall not be liable to the holder or owner of any such bond, note or warrant for any loss to the local guaranty fund occurring in the lawful operation thereof. A copy of the foregoing part of this section shall be plainly written, printed or engraved on each L.I.D. bond and note. (Ord. 86-688 § 4 (part), 1986: S.C.C. § 3-9-41.)

17.24.060 Remedy of bondholders and noteholders.

If the city and borough fails to pay any bonds, notes or warrants issued against an L.I.D. fund or to promptly collect any assessments when due, the owner or holder of any bond or note may enforce payment of the principal thereof or interest thereon and costs of collection in a civil action in the same manner and with the same effect as actions for the foreclosure of mortgages on real property. Foreclosure shall be against all property on which assessments are in default. The period for redemption shall be the same as in the case of a mortgage foreclosure on real property. Any number of owners or holders of bonds and notes of any single L.I.D. may joint as plaintiffs, and any number of owners of property upon which the delinquent assessments are liens may be joined as defendants in the same suit. Such owners and holders shall also have recourse against the local improvement guaranty fund. (Ord. 86-688 § 4 (part), 1986: S.C.C § 3-9-42.)

17.24.070 Investment for surplus city and borough funds.

L.I.D. bonds and notes which are within the protection of the local improvement guaranty fund of the city and borough shall be considered legal investments for any available surplus funds of the city and borough which now or hereafter may be authorized by the assembly to be invested in such bonds. (Ord. 86-688 § 4 (part), 1986: S.C.C. § 3-9-43.)

17.24.080 Payment by city and borough for city and borough owned lots.

Where city and borough owned lots are included in a special assessment district, the city and borough shall levy and collect taxes sufficient to pay the assessments against the city and borough owned lots when due. (Ord. 86-688 § 4 (part), 1986: S.C.C. § 3-9-44.)

17.24.090 Interim notes.

Notes to be entitled “L.I.D. No. _________, City and Borough of Sitka, Alaska, Notes” may be issued to provide funds to pay any part or all of the costs of improvements in any special assessment district; provided, that such notes may only be issued in anticipation of the receipt of cash or the issuance of bonds sufficient to redeem such notes.

Such notes shall be issued pursuant to ordinance and shall be made payable within a number of years to be determined by the assembly.

The provisions of Section 17.24.020 shall apply to such notes.

Notes issued shall be claims against the assessments that are prior and superior to a right, lien or claim of a surety on a bond given to the city and borough to secure the performance of its contracts for a local improvement project, or to secure the payment of persons who have performed work or furnished materials under the contract.

The finance director may accept notes against special assessments on conditions prescribed by resolution of the assembly in payment of:

A.  Assessments against which the notes were issued in order of priority;

B.  Judgments rendered against property owners who have become delinquent in the payment of assessments; and

C.  Certificates of purchase when property has been sold under execution or at tax sale for failure to pay assessments.

(Ord. 86-688 § 4 (part), 1986.)

17.24.100 Registration.

Special assessment bonds and notes may be issued in registered form in accordance with procedures determined by the assembly. (Ord. 86-688 § 4 (part), 1986.)

Chapter 17.28
LOCAL IMPROVEMENT GUARANTY FUND

Sections:

17.28.010 Fund established.

17.28.020 Use of fund.

17.28.010 Fund established.

The assembly shall establish a local improvement guaranty fund of the city and borough (herein at times called the “guaranty fund”) for the purpose of guaranteeing the payment of the principal of all special assessment bonds, notes, and warrants issued upon any special assessment district funds. The money in the guaranty fund shall be accounted for separately from all other money and funds of the city and borough in the central treasury and shall be held in trust for the uses and purposes herein provided.

Prior to the issuance of any special assessment fund warrants, notes or bonds, the city and borough shall acknowledge the moneys in the guaranty fund shall not be less than ten percent of the principal amount of all physical assessment fund warrants and bonds. The city and borough shall always maintain in the guaranty fund an amount not less than ten percent of the principal amount of all outstanding special assessment fund warrants, notes and bonds then outstanding. Any moneys paid out of the guaranty fund to redeem special assessment district bonds, notes or warrants shall be replaced by the city and borough as soon as possible out of any legally available sources. (Ord. 96-1386 § 4, 1996: Ord. 86-688 § 4 (part), 1986: S.C.C. § 3-9-45.)

17.28.020 Use of fund.

Defaulted special assessments bonds, notes, and special assessment fund warrants shall be purchased out of the guaranty fund, and as between the several issues of bonds, notes or warrants no preference shall exist, but they shall be purchased in the order of their presentation.

Whenever any sum is paid out of the guaranty fund on account of principal or interest on a special assessment district bond, note or warrant, the city and borough as trustee of such fund shall be subrogated to all the rights of the holder of such bond, note or warrant so paid, and the proceeds thereof or of the underlying assessment shall become a part of the guaranty fund.

All interest and earnings derived from the investment of moneys in the guaranty fund shall be credited to such fund.

Money received from actions taken against property for nonpayment of assessments shall be credited to the guaranty fund.

As provided in Section 17.16.080 hereof, if special assessment district bonds or notes have been issued all moneys remaining in any L.I.D. fund or of any special assessment district fund after all costs of improvements in such district including the redemption of all warrants, notes and bonds of such district have been paid shall also be paid into the guaranty fund.

Should the assembly, after determining that the amount in the guaranty fund meets all required guaranty requirements plus foreseeable future requirements, find there are excess moneys in the guaranty fund, it may authorize transfer of the excess to the revolving fund. (Ord. 86-688 § 4 (part), 1986: S.C.C. § 3-9-46.)

Chapter 17.32
LOCAL IMPROVEMENT DISTRICT REVOLVING FUND

Sections:

17.32.010 Purpose.

17.32.020 Sources.

17.32.030 Repayments into fund.

17.32.010 Purpose.

There is created a local improvement district revolving fund of the city and borough which shall be used for the purpose of:

A.  Financing the property owners’ share of the cost of improvements of an L.I.D, not available from other moneys of the municipality or where the sale of special assessment bonds is not feasible;

B.  Finance the municipal share of the cost of improvements of an L.I.D. not available from other moneys of the municipality;

C.  Making payments into the guaranty fund;

D.  One hundred twenty-five thousand dollars in general obligation bonds were issued on May 1, 1967, to finance the municipal share of L.I.D.s and to make payments into the guaranty fund. In order to safeguard the use of these funds, the amount of money in the revolving fund plus that due it from other funds for the municipal share of L.I.D.s and from the guaranty fund for any loans made to it, shall not be allowed to fall below one hundred twenty-five thousand dollars.

(Ord. 74-155 § 3(a), 1974: S.C.C. § 3-9-47.)

17.32.020 Sources.

Moneys to be paid into this revolving fund may be provided from general taxes, from the sale of general obligation bonds of the city and borough, or from any other legal sources as determined by the assembly.

As provided in Section 17.16.080 hereof, if special assessment district bonds have not been issued, all moneys remaining in any L.I.D. fund after all costs of improvements in such district including the redemption of all warrants and bonds of such district have been paid shall also be paid into the revolving fund. (S.C.C. § 3-9-48.)

17.32.030 Repayments into fund.

A.  When any disbursements are made from the revolving fund to pay the property owners’ portion of the cost of improvements in any L.I.D., any assessments paid by owners in such L.I.D. shall be repaid to the revolving fund to the extent of moneys disbursed by such fund to such L.I.D.

B.  When any disbursements are made from the revolving fund to pay the municipality’s portion of the cost of improvements in any L.I.D., the appropriate fund shall repay the revolving fund in equal installments over a period of years not to exceed the number of years allowed the property owners to repay their portion of the costs.

C.  When any disbursements are made from the revolving fund into the guaranty fund, as the amount of outstanding bonds issued for that L.I.D. are reduced, the revolving fund shall be repaid proportionately.

(Ord. 74-155 § 3(b), 1974: S.C.C. § 3-9-49.)

TITLE 17 FOOTNOTES

1.   For the Charter provisions regarding special assessment receipts, see § 15.08; for the provisions regarding finance generally, see §§ 11.01 -  11.16.