Chapter 3.24


3.24.010    Established—Purpose.

3.24.020    Maintenance and deposits.

3.24.030    Warrants—Interest—Use of funds.

3.24.040    Obligation guarantee requirements.

3.24.050    Limitation on claim against city.

3.24.060    Adoption of specified statutes.

*    For statutory provisions on establishing a guarantee fund, see RCW Chapter 35.54.

3.24.010 Established—Purpose.

There is established a fund for the purpose of guaranteeing to the extent of such fund, the payment of the local improvement bonds and warrants of the town issued to pay for any local improvement order by the town and guaranteed by it under this chapter, which fund shall be designated “local improvement guarantee fund”. (Ord. 81 § 1, 1928)

3.24.020 Maintenance and deposits.

Such fund shall be maintained by a tax levy made from time to time as other municipal taxes are levied; provided, however, that any tax so levied shall in any year not exceed an amount sufficient to pay the then outstanding warrants on such fund, and to establish a balance as may be determined necessary to meet anticipated requirements of such fund; and provided further, that the levy therefor in any year shall not exceed five percent of the total outstanding obligations guaranteed by such fund at the time of such levy. Such levy shall be made at the time the general tax levy of the town is made. Into such fund shall also be paid any interest received on the bank deposits of such fund and any surplus remaining in any guaranteed local improvement fund after all its obligations have been paid. (Ord. 81 § 2, 1928)

3.24.030 Warrants—Interest—Use of funds.

Local improvement bonds or warrants guaranteed under this fund shall be paid by the issuance of warrants against the fund bearing interest at six percent per year, provided, that the amount of warrants issued and outstanding at any one time over and above the amount of cash in the fund to meet the same, shall at no time exceed five percent of the total obligations guaranteed. As between obligations of different local improvement districts guaranteed, no preference shall exist and the obligations shall be paid out of the fund in order of their presentation to the town treasurer, and in case of presentation on the same day, interest coupons, if any, shall be first paid and the oldest bonds or warrants shall then receive the next proceeds; provided further, that when the treasurer may determine it necessary to do so and shall be so directed to do by the town council, he may ahead of the payments provided in this section, apply any of such fund to protect the local improvements of any guaranteed district, purchase the assessed property at county tax foreclosure, or use the proceeds to pay such general tax lien. (Ord. 81 § 3, 1928)

3.24.040 Obligation guarantee requirements.

The obligations of any local improvement district established in the town shall not be guaranteed under this fund where the estimated cost of so much of the improvement as is to be assessed to the property in the district when added to such other local improvement assessments as are outstanding and unpaid against the property included in the district, shall exceed the actual value of the real property, exclusive of improvements thereon, within the district, according to the valuation last placed upon it for purposes of general taxation, and any local improvement fund guaranteed shall only be guaranteed upon the certificate of the streets and alleys committee to the fact that it is entitled to guarantee, and in such case the bonds of such local improvement district shall show that the same are guaranteed according to the provisions of this chapter. (Ord. 81 § 4, 1928)

3.24.050 Limitation on claim against city.

The holder of any bond or warrant guaranteed under this fund shall have no claim against the city or town except from the payment of the special assessments made for the improvement for which such obligation was issued and except as against the guarantee fund created by this chapter, and the town shall not be liable to any owner or holder of such obligations for any loss to the guarantee fund occurring in the lawful operation thereof by the city or town. (Ord. 81 § 5, 1928)

3.24.060 Adoption of specified statutes.

The ordinance codified in this chapter is passed pursuant to the provisions of Remington’s Compiled Statutes, Sections 9351-1 to 9351-5 and the town shall be subrogated to and have all the right provided in such statute with regard to obligations guaranteed under this fund. (Ord. 81 § 6, 1928)