Chapter 3.44
LOCAL IMPROVEMENT ASSESSMENT PROCEDURES*
Sections:
3.44.010 State statutes adopted.
3.44.030 Disposition of interest earnings.
3.44.040 Subrogation rights to assessments.
3.44.050 Surplus after payment—Disposition.
3.44.060 Tax levy—Establishment procedures.
3.44.070 Purchases of bonds, coupons and warrants.
3.44.080 Purchases of certificates or property.
3.44.090 Warrants against fund.
3.44.100 Assessment—Deferrals—Liens.
3.44.110 Transfers from guaranty fund to general fund.
3.44.120 Assessment—Delinquency—Balance of payment due.
3.44.130 Utility local improvement districts.
*Prior ordinance history: Ord. 660.
3.44.010 State statutes adopted.
The procedures relating to municipal local improvements and assessments as set forth in RCW Chapters 35.43 through 35.56 as the same may be amended from time to time, are adopted by the city. (Ord. 3062 § 2(A), 1986)
3.44.020 Fund established.
There has been established in the city a fund designated as the local improvement guaranty fund, for the purpose of guaranteeing, to the extent of the fund, the payment of the city's local improvement bonds, notes and warrants issued to pay for any local improvement ordered in the city or in any area wholly or partly outside its corporate boundaries. The rules and regulations for the maintenance and operation of the guaranty fund are established by Sections 3.44.030 through 3.44.100 of this chapter. (Ord. 3062 § 2(B), 1986)
3.44.030 Disposition of interest earnings.
Interest and earnings from the local improvement guaranty fund shall be paid into the fund. (Ord. 3062 § 2(C), 1986)
3.44.040 Subrogation rights to assessments.
Whenever any sum is paid out of the local improvement guaranty fund on account of principal or interest of a local improvement bond note or warrant, the city as trustee of the fund shall be subrogated to all the rights of the holder of the bond, interest coupon, note or warrant so paid, and the proceeds thereof, or of the underlying assessment, shall become part of the guaranty fund. (Ord. 3062 § 2(D), 1986)
3.44.050 Surplus after payment—Disposition.
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 warrants payable therefrom, it shall be paid into the local improvements guaranty fund. (Ord. 3062 § 2(E), 1986)
3.44.060 Tax levy—Establishment procedures.
A. 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 a sum sufficient, with the other sources of the fund, to pay warrants issued against the fund during the preceding fiscal year and to establish a balance therein: provided, that the levy in any one year shall not exceed the greater of:
1. Twelve percent of the outstanding obligations guaranteed by the fund; or
2. The total amount of delinquent assessments and interest accumulated on the delinquent assessments before the levy as of September 1st.
B. If otherwise permitted by law, the taxes levied for the maintenance of the local improvement guaranty fund shall be additional to and, if need be, in excess of all statutory limitations applicable to tax levies in the city. (Ord. 3062 § 2(F), 1986)
3.44.070 Purchases of bonds, coupons and warrants.
Defaulted bonds, interest coupons, notes and warrants against local improvement funds shall be purchased out of the guaranty fund and, as between the several issues of bonds, coupons, notes or warrants, no preference shall exist, but shall be purchased in the order of their presentation. (Ord. 3062 § 2(G), 1986)
3.44.080 Purchases of certificates or property.
A. For the purpose of protecting the guaranty fund, so much of the guaranty fund as is necessary may be used to purchase certificates of delinquency for general taxes on property subject to local improvement assessments which underlie the bonds, coupons or warrants 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, expense 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 at public or private sale at such price on such terms as may be determined by resolution of the council. All proceeds shall belong to and be paid into the local improvement guaranty fund. (Ord. 3062 § 2(H), 1986)
3.44.090 Warrants against fund.
Warrants drawing interest at a rate not to exceed a rate fixed by the issuing office, who shall be the finance director, under the direction of the city council, shall be issued 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 obligation guaranteed by the fund. (Ord. 3062 § 2(1), 1986)
3.44.100 Assessment—Deferrals—Liens.
A. Whenever payment of a local improvement district assessment is deferred pursuant to the provisions of RCW 35.43.250, the amount of the deferred assessment, if required to prevent a default in paying principal and/or interest on any bond, note or warrant of the applicable local improvement district, shall be paid out of the local improvement guaranty fund. The local improvement guaranty fund shall have a lien on the benefitted property in an amount equal to the deferral together with interest as provided for by the establishing ordinance.
B. The lien may accumulate up to an amount not to exceed the sum of two installments: provided, that the ordinance creating the local improvement district may provide for one or additional deferrals of up to two installments. Local improvement assessment obligations deferred under this chapter shall become payable upon the earliest of the following dates:
1. Upon the date and pursuant to conditions established by the ordinance granting the deferral; or
2. Upon the sale of property which has a deferred assessment lien upon it from the purchase price; or
3. Upon the death of the person to whom the deferral was granted from the value of his estate; except a surviving spouse shall be allowed to continue the deferral which shall then be payable by the spouse as provided in this section. (Ord. 3062 § 2(J), 1986)
3.44.110 Transfers from guaranty fund to general fund.
To the extent permitted by law and covenant made by the city with respect to any bond, note or warrant, the city council may authorize the transfer of money from the guaranty fund to the city's general fund. (Ord. 3062 § 2(K), 1986)
3.44.120 Assessment—Delinquency—Balance of payment due.
In any action brought for the foreclosure of a delinquent assessment or a delinquent installment thereof, future installments not otherwise due and payable shall thereupon be accelerated, and subject to statute, the entire balance of the assessment with interest, penalty and costs, shall become due and payable and the collection thereof shall be enforced by foreclosure. (Ord. 3062 § 2(L), 1986)
3.44.130 Utility local improvement districts.
To the extent applicable, references to local improvement districts shall also apply to utility local improvement districts without limiting the foregoing provisions relating to the local improvement district guaranty fund, local improvement funds shall not apply to utility local improvement districts. (Ord. 3062 § 2(M), 1986)