Chapter 11.16
PAYMENT
Sections:
11.16.010 City or contract assessment determination.
11.16.020 Distributed and assessed against property.
11.16.040 Sale and issuance of bonds.
11.16.060 Warrants deemed claims and liens.
11.16.070 Local improvement fund.
11.16.080 Bond installment plan designated.
11.16.090 Bond installment plan report – Issuance.
11.16.010 City or contract assessment determination.
All local improvements, funds for the making of which are derived in whole or in part from assessments upon property specially benefited, shall be made either by the city itself, or by contract upon competitive bids in the manner provided by law. The city council shall determine whether such local improvement shall be done by contract or the city itself. (Ord. 126 § 5, 1962).
11.16.020 Distributed and assessed against property.
The cost and expense of any such improvement shall be distributed and assessed against all the property included in such local improvement district, in accordance with the special benefits conferred thereon, and in the manner provided by law. (Ord. 126 § 6, 1962).
11.16.030 Payment by bonds.
The city council may provide by ordinance for the payment of the whole or any portion of the cost and expense of any local improvement by bonds of the improvement district, but no bonds shall be issued in excess of the cost and expense of the improvement, nor shall they be issued prior to 20 days after the 30 days allowed for the payment of assessments without penalty or interest. (Ord. 126 § 7, 1962).
11.16.040 Sale and issuance of bonds.
Local improvement bonds may be issued to the contractor or sold by the officers authorized by the ordinance directing their issue to do so, in the manner prescribed therein, and at not less than par and accrued interest. Any portion of the bonds of any issue remaining unsold may be issued to the contractor constructing the improvement in payment thereof.
The proceeds of all sales of bonds shall be applied in payment of the cost and expense of the improvement. (Ord. 126 § 8, 1962).
11.16.050 Warrant issuance.
The city council may provide by ordinance for the issuance of warrants in payment of the cost and expense of any local improvement, payable out of the local improvement district fund. The warrants shall bear interest at the rate of not to exceed eight percent per year and shall be redeemed either in cash or by local improvement bonds for the same improvement authorized by ordinance. (Ord. 126 § 9, 1962).
11.16.060 Warrants deemed claims and liens.
All warrants against any local improvement fund sold by the city or issued to a contractor and by him sold or hypothecated for a valuable consideration shall be claims and liens against the improvement fund against which they are drawn prior and superior to any right, lien or claim of any surety upon the bond or bonds given to the city by or for the contractor to secure the performance of his contract or to secure the payment of persons who have performed work therein, furnished materials therefor, or provisions and supplies for the carrying on of the work. (Ord. 126 § 9, 1962).
11.16.070 Local improvement fund.
All assessments for local improvements shall be collected by the city treasurer and shall be kept in a separate fund to be known as “Local Improvement Fund, District No. ____”, and shall be used for no other purpose than the redemption of warrants drawn upon and bonds issued against the fund to provide payment for the cost and expense of the improvement.
As soon as the assessment roll has been placed in the hands of the city treasurer for collection, he shall publish a notice in the official newspaper of the city for 10 consecutive daily or two consecutive weekly issues, that the roll is in his hands for collection and that any assessment may be paid within 30 days from the date of the first publication of the notice without penalty, interest or costs. (Ord. 126 § 10, 1962).
11.16.080 Bond installment plan designated.
In all cases where bonds are issued to pay the cost and expense of a local improvement, the ordinance levying the assessments shall provide that the sum charged against any lot, tract, and parcel of land or other property, or any portion thereof, may be paid during the 30-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 installments. The number of installments shall be less by two than the number of years which the bonds issued to pay for the improvements are to run. Interest on the whole amount unpaid at the rate fixed by the ordinance shall be due on the due date of the first installment of principal and each year thereafter on the due date of each installment of principal. The first installment shall become due and payable during the 30-day period succeeding a date one year after the date of first publication of the treasurer’s notice, and annually thereafter each succeeding installment shall become due and payable in like manner. If the whole or any portion of any assessment remain unpaid after the first 30-day period herein provided for, interest upon the whole unpaid sum shall be charged at the rate fixed in the ordinance providing for such improvement, and each year thereafter one of said installments, together with interest due upon the whole of the unpaid balance shall be collected. Any installment not paid prior to the expiration of the 30-day period during which such installment is due and payable, shall thereupon become delinquent. All delinquent installments in addition to the interest payable as provided in the ordinance levying the assessment, shall be subject to a penalty charge of five percent levied upon both principal and interest due on such installment or installments. (Ord. 126 § 11(A), 1962).
11.16.090 Bond installment plan report – Issuance.
In case said improvement is made on the bond installment plan, the city treasurer shall, at the expiration of 30 days after the first publication of the notice to pay assessment, report to the city council the amount collected by him upon the said roll and shall specify in said report the amount remaining unpaid upon said roll, and the city council may then, or at a subsequent meeting, by ordinance, direct the mayor and city clerk to issue the bonds on the local improvement district established by the ordinance ordering the improvement in an amount equal to the amount remaining unpaid on said assessment. Said ordinance shall specify the denomination of the bonds which, except for bond numbered “one”, shall be in multiples of $100.00 each or in multiples of $1,000 each. (Ord. 126 § 11(B), 1962).
11.16.100 Bond form.
All bonds, unless otherwise specially ordered by the council, issued in pursuance of the provisions of this title, may be in substantially the following form:
No.______ $_______
UNITED STATES OF AMERICA
STATE OF WASHINGTON
LOCAL IMPROVEMENT BOND
CITY OF NORMANDY PARK
LOCAL IMPROVEMENT DISTRICT NO. ____
N.B. This bond is issued by virtue of the provisions of R.C.W. 35.45.010 et seq., RCW 35.45.070 of which reads as follows:
“Neither the holder nor the owner of any bond or warrant issued under the provisions of this act shall have any claim therefor against the city or town by which the same is issued, except for payment from the special assessments made for the improvement for which said bond or warrant was issued, and except as against the local improvement guaranty fund of such city or town, and the city or town shall not be liable to any holder or owner of such bond or warrant for any loss to the guaranty fund occurring in the lawful operation thereof by the city or town. The remedy of the holder or owner of a bond or warrant in case of nonpayment, shall be confined to the enforcement of the assessment and to the guaranty fund.”
The City of Normandy Park, a municipal corporation of the State of Washington, hereby promises to pay to _________ or bearer _________ ($_____) dollars in lawful money of the United States, with interest thereon at the rate of (____%) ______ per cent per annum, payable annually out of the fund established by Ordinance No. ____ of said City and known as “Local Improvement Fund, District No. ____” and not otherwise, except from the guaranty fund, as herein provided. Both principal and interest on this bond are payable at the office of the City Treasurer of said City.
A coupon is hereto attached for each installment of interest to accrue hereon and said interest shall be paid only on presentation and surrender of such coupon to the City Treasurer.
This bond is payable on or before the _____ day of ___________, 19___ , and is subject to call by the City Treasurer of said City whenever there shall be sufficient money in said Local Improvement Fund to pay the same and all unpaid bonds of the series of which this bond is one, which are prior to this bond in numerical order, over and above sufficient for the payment of interest on all unpaid bonds of said series.
The call for payment of this bond, or of any bond of the series of which this is one, shall be made by the City Treasurer by publishing the same once in the official newspaper of said City, and when such call is made for the payment of this bond it will be paid on the day the next interest coupon thereon shall become due after said call and upon said day interest upon this bond shall cease and any remaining coupons shall be void.
The City Council of said City as the agent of said Local Improvement District No._____, established by Ordinance No. _____, has caused this bond to be issued in the name of said City as the bond of said Local Improvement District, the bond or the proceeds thereof to be applied in part payment of so much of _______, under said Ordinance No. _____ as is levied and assessed against the property included in said Local Improvement District No._____ and benefited by said improvement, and the said Local Improvement Fund has been established by ordinance for said purpose; and the holder or holders of this bond shall look only to said fund and to the Local Improvement Guaranty Fund of the City of Normandy Park for the payment of either the principal of or interest on this bond.
This bond is one of a series of _______ BONDs aggregating in all the principal sum of ________ ($_____) Dollars, all of which bonds are subject to the same terms and conditions as herein expressed.
IN WITNESS WHEREOF, the City of Normandy Park has caused these presents to be signed by its Mayor and attested by its City Clerk and sealed with its corporate seal this _____ day of _________, 19___ .
CITY OF NORMANDY PARK
By_____________________
Mayor
Attest:
____________________
City Clerk
(Ord. 126 § 12, 1962).
11.16.110 Bond coupon form.
There shall be attached to each bond such a number of coupons as shall be required to represent the interest thereon payable either annually or semiannually, as the case may be, for the term of said bonds, which coupons shall be substantially in the following form:
On the ____ day of __________19___ , the CITY OF NORMANDY PARK, STATE OF WASHINGTON, promises to pay to bearer at the office of the City Treasurer ________ ($______) Dollars, being (six) (twelve) months’ interest due that day on Bond No. ____, and not otherwise; provided, that this coupon is subject to all the terms and conditions contained in the bond to which it is annexed, and if said bond shall be called for payment before maturity hereof, then this coupon shall be void.
CITY OF NORMANDY PARK,
WASHINGTON
By__________________
Mayor
Attest:
_______________
City Clerk
(Ord. 126 § 12, 1962).
11.16.120 Bond registration.
The city treasurer shall keep in his office a register of all such bonds in which he shall enter the local improvement district for which the same are issued and the date, amount and number of each bond and the terms of payment. (Ord. 126 § 12, 1962).