Chapter 3.24
LOCAL IMPROVEMENT DISTRICTS
Sections:
3.24.010 Guaranty fund – Established.
3.24.020 Guaranty fund – Tax levy.
3.24.030 Guaranty fund – Interest.
3.24.040 Guaranty fund – Payment of deferred assessments for the economically disadvantaged.
3.24.050 Guaranty fund – Warrants.
3.24.060 Guaranty fund – Purchase of property subject to tax foreclosure.
3.24.070 Guaranty fund – Transfer of funds to general fund.
3.24.100 Assessments – Segregation.
3.24.200 Assessments – Cancellation – Release of assessment lien.
3.24.300 Assessments – Delinquency – Penalty – Relief.
3.24.310 Assessments – Delinquent – Foreclosure.
3.24.400 Assessments – Interest – Relief.
3.24.010 Guaranty fund – Established.
There is hereby established under authority of Chapter 35.54 RCW a fund of the City to be known as the “local improvement guaranty fund” for the purpose of guaranteeing to the extent of such fund the payment of local improvement bonds, notes and short-term obligations issued to pay the cost of improvements constructed in all local improvement districts of the City, including deferred assessments. [Ord. 558 § 1, 1999.]
3.24.020 Guaranty fund – Tax levy.
From time to time for the purpose of maintaining the local improvement guaranty fund, the City shall, at the time of making its annual budget and tax levy, provide for the levy of a sum sufficient, when taken with other resources of the fund, to meet the financial requirements of the fund and to establish a balance therein; provided, that the levy in any one year shall not exceed the greater of:
A. Twelve percent of the outstanding local improvement district obligations guaranteed by the fund; or
B. The total amount of delinquent assessments and interest accumulated on the delinquent assessments before the levy as of September 1st of each year.
The tax levy herein authorized and directed shall be additional to and, if need be, in excess of any and all statutory and other limitations applicable to the tax levy of the City of Everson. [Ord. 558 § 1, 1999.]
3.24.030 Guaranty fund – Interest.
Interest and earnings from the local improvement guaranty fund shall be paid into the fund. If in any local improvement fund guaranteed by the local improvement guaranty fund there is a surplus remaining after the payment of all outstanding bonds and short-term obligations payable therefrom, it shall be paid into the local improvement guaranty fund. [Ord. 558 § 1, 1999.]
3.24.040 Guaranty fund – Payment of deferred assessments for the economically disadvantaged.
Whenever any payment of a local improvement district assessment is deferred pursuant to RCW 35.43.250, the ordinance forming the LID, or this chapter, the deferred assessment shall be paid out of the local improvement guaranty fund, which fund shall have a lien on the property benefited in an amount equal to the amount deferred together with interest thereon as provided by the establishing ordinance and pursuant to RCW 35.43.250 and 35.54.100. [Ord. 558 § 1, 1999.]
3.24.050 Guaranty fund – Warrants.
In order to effectuate the purposes of this chapter, the City Treasurer is authorized to from time to time draw and pay serially numbered warrants drawing interest at a rate established by the City Treasurer, but not exceeding six percent per annum, against the local improvement guaranty fund to meet any liability accruing against it. The warrants so issued shall at no time exceed five percent of the outstanding obligations guaranteed by the fund. At the time of making its annual budget and tax levy, the City shall provide for the levying of a sum sufficient, with other resources of the fund, to pay warrants issued during the preceding fiscal year. In the administration of this section, the City Treasurer shall observe the following:
A. As among the several issues of bonds or warrants guaranteed by the fund, no preference shall exist.
B. Defaulted interest coupons, bonds and warrants shall be purchased out of the fund in the order of their presentation.
C. Whenever any defaulted interest coupons, bonds or warrants shall be presented to the City Treasurer for purchase, if the outstanding warrants against the local improvement guaranty fund (including the amount of the coupons, bonds or warrants so presented) do not then exceed five percent of the outstanding bond obligations guaranteed by the fund, the City Treasurer shall examine such coupons, bonds or warrants and if satisfied that the same are guaranteed by such fund he or she shall receive and keep such coupons, bonds or warrants, issuing his or her receipt therefor to the holder of the same, together with a warrant upon the local improvement guaranty fund in the amount thereof. Warrants so issued shall be paid from the local improvement guaranty fund in the order of their serial numbers.
D. If at the time any defaulted interest coupons, bonds or warrants are presented for purchase the warrants upon the local improvement guaranty fund then outstanding (including the amount of the coupons, bonds or warrants so presented) shall exceed five percent of the outstanding bond obligations guaranteed by the fund, the City Treasurer shall examine such coupons, bonds or warrants and if satisfied that the same are guaranteed by such fund he or she shall issue to the holder a presentation certificate describing such coupons, bonds or warrants and showing the date and time of the day when the same were so presented for purchase, and the name and address of the holder thereof. Such presentation certificate shall be issued and numbered serially in the order of the presentation for purchase of defaulted interest coupons, bonds or warrants by the respective holders thereof.
E. Whenever the amount of outstanding warrants against the local improvement guaranty fund shall be retired in an amount sufficient to authorize the issuance of a warrant upon the fund for the purchase of the coupons, bonds or warrants described in any presentation certificate it shall be the duty of the City Treasurer to notify the holder of such presentation certificate by mail at the address stated in the presentation certificate; and upon presentation to him or her of the presentation certificate, together with the coupons, bonds or warrants described therein, the City Treasurer shall receive and keep such coupons, bonds or warrants, issuing his or her receipt therefor together with his or her warrant upon the local improvement guaranty fund covering the same. Such warrants shall be issued in the order of the serial numbers of the presentation certificates.
F. Whenever any sum is paid out of the local improvement guaranty fund on account of the principal or interest of a local improvement bond or short-term obligation, the City, as trustee of the fund, shall be subrogated to all the rights of the holder of the bond or short-term obligation so paid and the proceeds thereof or of the underlying assessment shall be paid into the guaranty fund. [Ord. 558 § 1, 1999.]
3.24.060 Guaranty fund – Purchase of property subject to tax foreclosure.
A. For the purpose of protecting the local improvement guaranty fund, so much of the same as is necessary may be used to purchase certificates of delinquency for general taxes on property subject to local improvement assessments guaranteed by the fund, or to purchase such property at County tax foreclosures, or from the County after foreclosure.
B. The City, as trustee of the fund, may foreclose the lien of general tax certificates of delinquency and purchase the property at foreclosure sale. When doing so, the court costs, costs of publication, expenses for clerical work and other expenses incidental thereto shall be charged to and paid from the local improvement guaranty fund.
C. After acquiring title to property by purchase at general tax foreclosure sale or from the County after foreclosure, the City may lease it or sell it as provided for surplus real property by law. All proceeds shall belong to and be paid into the local improvement guaranty fund. [Ord. 558 § 1, 1999.]
3.24.070 Guaranty fund – Transfer of funds to general fund.
A. Upon certification by the City Treasurer that the local improvement guaranty fund has sufficient funds currently on hand to meet all valid outstanding obligations of the fund and all other obligations of the fund reasonably expected to be incurred in the near future, the Council may by ordinance transfer assets from the local improvement guaranty fund to the general fund.
B. The net cash of the local improvement guaranty fund may be reduced by such transfer to an amount not less than 10 percent of the net outstanding obligations guaranteed by such fund.
C. If, within five years of any such transfer from the local improvement guaranty fund to the general fund, the net cash in the guaranty fund is reduced below the minimum amount of 10 percent of the outstanding and foreseeable obligations, the City shall pay valid claims against the guaranty fund from the general fund, up to the total amount transferred, and shall in addition pay all reasonable costs of collection necessarily incurred by the holders of valid claims against the guaranty fund, from the general fund. [Ord. 558 § 1, 1999.]
3.24.100 Assessments – Segregation.
A. The City Treasurer is authorized to collect and receive from any owner or owners of any subdivision or subdivisions of any lot, tract or parcel of land, upon which a local improvement assessment has been, or may hereafter be, made, such portion of the assessment or assessments levied or to be levied against such lot, tract or parcel of land in the payment of the local improvement as the City Treasurer shall certify to be chargeable to such subdivision or subdivisions in accordance with State law.
B. Whenever, on account of the filing of a plat or replat on account of a sale or contract to sell or other proper evidence of the change of ownership of a divided portion of any lot, tract or parcel of land assessed for local improvements, it shall appear to be to the best interest of the City to segregate a local improvement district assessment thereupon, the City Treasurer is authorized to make the proper certification as provided in this chapter, upon the written application of the owner, approved by the Mayor, and confirmed by the City Council by resolution, and upon payment of the fee hereinafter provided. In all instances it shall be the duty of the City Treasurer to submit the necessary resolution for segregation for City Council approval. A fee of $60.00 shall be charged for each tract of land for which a segregation is to be made together with a fee of $10.00 per description for each description added to the assessment roll, to defray the cost of the engineering and clerical work involved. Such fees shall be paid to the City Treasurer and shall be deposited in the general fund.
C. Upon receipt of a certified copy of a resolution of the City Council authorizing segregation, the City Treasurer shall enter the segregation, together with the amount of the bonded interest with respect thereto, upon the assessment records and, upon payment thereof, together with any penalties accruing according to law and any additional interest due with respect to the segregated portion, give a proper receipt; provided, that this chapter shall not authorize the segregation of any assessment which is delinquent, or in any case where it appears that the property, when or as already divided according to the requested segregation, is not or would not be of sufficient value, or is not or would not be in such condition or title, as to provide adequate security for the payment of the total amount of the unpaid assessment, penalties, interest and costs charged or chargeable against the undivided whole. In such instance, upon a recommendation by the City Treasurer, the City Council shall determine such question of fact. No segregation of any assessment on unplatted lands or large platted tracts shall be made until a plat thereof has been furnished to the City Treasurer by the applicant, showing that the proposed segregation of property will conform to the system of streets as platted in adjacent territory. In all such instances, upon a recommendation by the City Treasurer, the City Council shall determine such question of fact. [Ord. 558 § 1, 1999.]
3.24.200 Assessments – Cancellation – Release of assessment lien.
The City Treasurer is authorized to cancel on the books and records of a local improvement district the assessment or an installment of an assessment, interest and penalties imposed by or for the district when:
A. The amount due shown on the district’s books and records has been found to be void by a final judgment of a court with jurisdiction over the local improvement district;
B. RCW 35.50.050, which limits the time for commencing foreclosure proceedings, bars a foreclosure action to enforce the payment;
C. Whatcom County has resold the property to pay property taxes, the resale is free and clear of the assessment lien, and pursuant to RCW 35.49.160, the City has received or will receive from the proceeds of the County sale such funds as are due to the district; or
D. The City Attorney by written opinion advises the City Treasurer that the assessment, interest or penalty to be canceled is void or that the law otherwise prevents its collection. Upon cancellation of an assessment, interest or penalty, the City Treasurer may release the assessment lien upon the property to secure the payment which was canceled. A release affects only the payment(s) or liens named in the release document and does not release other payments or other liens upon the same property of other local improvement districts respectively. [Ord. 558 § 1, 1999.]
3.24.300 Assessments – Delinquency – Penalty – Relief.
Unless otherwise provided in the ordinance or ordinances establishing the local improvement district, whenever any annual or other installment upon any local improvement assessment shall become due and shall remain unpaid for 10 days thereafter, the same shall be deemed delinquent and shall have added thereto a penalty of five percent, and shall in addition thereto draw interest at the same rate as is provided by the ordinance for the bonds or warrants issued in payment or part payment of such local improvement. Upon application therefor, relief from such penalty may be obtained by unanimous vote the City Council in the event such penalty arose from an erroneous billing and the customer did not actually receive the assessment installment billing. [Ord. 558 § 1, 1999.]
3.24.310 Assessments – Delinquent – Foreclosure.
In the event of delinquencies meeting the condition precedent to foreclosure in RCW 35.50.030, the collection thereof will be enforced by foreclosure in the manner authorized and provided in Chapter 35.50 RCW and this section:
A. Notwithstanding the provisions of RCW 35.50.030, the date by which foreclosure proceedings must be commenced shall be July 1st;
B. Notwithstanding the provisions of RCW 35.50.040, upon issuance of the notice required by RCW 35.50.030, the entire assessment shall become immediately due and payable;
C. The payment of all delinquent installments, together with interest, penalty and costs, at any time before the entry of judgment in foreclosure extends the time of payment of the remainder of the assessments as if there had been no delinquency or foreclosure;
D. In case of foreclosure, there shall be included in the costs and expenses provided by Chapter 35.50 RCW such reasonable attorney’s fees as the court may adjudge to be equitable, with such amount ratably apportioned against each delinquent assessment or installment foreclosed on the basis of the relative amount of the assessment balances. [Ord. 604 § 1, 2003; Ord. 558 § 1, 1999.]
3.24.400 Assessments – Interest – Relief.
Upon application therefor, relief from interest may be obtained by unanimous vote the City Council in the event and to the extent that such interest arose from:
A. An erroneous billing address clearly the error of the City and the customer did not actually receive the assessment installment billing; or
B. An erroneous billing amount clearly the error of the City. [Ord. 558 § 1, 1999.]