Chapter 3.32
LOCAL IMPROVEMENT GUARANTY FUND
Sections:
3.32.040 Purchase of defaulted bonds.
3.32.050 Foreclosure of lien – Sale of property.
3.32.060 Interest and earnings payment.
3.32.070 Deferred assessment payment.
3.32.080 Transfer of funds to general fund.
3.32.090 Increase of funds maintained.
3.32.010 Created.
Pursuant to Chapter 35.54 RCW, there is created a fund of the city to be known and designated as the “local improvement guaranty fund” for the purpose of guaranteeing to the extent of such fund in the manner provided by law and this chapter the payment of local improvement bonds and short term obligations hereafter issued to pay the cost of improvements constructed in all local improvement districts of the city. (Ord. 653 § 1, 1985).
3.32.020 Levy authorized.
From time to time hereafter 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, with other resources of the fund, to meet the financial requirements of such fund as set forth in NBMC 3.32.030 and to establish a balance therein; provided, that the levy in any one year shall not exceed the greater of (1) 12 percent of the outstanding local improvement district 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 each year. (Ord. 653 § 2, 1985).
3.32.030 Warrant issuance.
Warrants drawing interest at a rate established by the city administrator but not exceeding 12 percent 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 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 so issued during the preceding fiscal year. (Ord. 653 § 3, 1985).
3.32.040 Purchase of defaulted bonds.
Defaulted bonds and interest thereon and warrants or other short term obligations against local improvement district funds of the city shall be purchased out of the guaranty fund, and as between the several issues of bonds, interest payments, bond short term obligations no preference shall exist, but they shall be purchased in the order of their presentation. (Ord. 653 § 4, 1985).
3.32.050 Foreclosure of lien – Sale of 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, interest payments or short term obligations 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 and on such terms as may be determined by resolution of the city council. All proceeds shall belong to and be paid into the local improvement guaranty fund. (Ord. 653 § 5, 1985).
3.32.060 Interest and earnings payment.
A. 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.
B. 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 become part of the guaranty fund. (Ord. 653 § 6, 1985).
3.32.070 Deferred assessment payment.
Whenever any payment of a local improvement district assessment is deferred pursuant to RCW 35.43.250, the deferred assessment shall be paid out of the local improvement guaranty fund, which fund shall have a lien on the property benefitted in an amount equal to the deferral together with interest thereon as provided by the establishing ordinance and pursuant to RCW 35.54.100 and 35.43.250. (Ord. 653 § 7, 1985).
3.32.080 Transfer of funds to general fund.
Upon certification by the city finance director 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 in the local improvement guaranty fund to its general fund. 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 local improvement district obligations guaranteed by such fund. If within five years of any such transfer from the local improvement guaranty fund to the general fund, the net cash within the local improvement guaranty fund is reduced below the minimum amount of 10 percent of the outstanding obligations, the city shall pay valid claims against the local improvement guaranty fund to the extent of the amount transferred, as a general obligation of the city, and shall pay all reasonable costs of collection necessarily incurred by the holders of valid claims against the local improvement guaranty fund. (Ord. 1505 § 2 (part), 2013; Ord. 1426 § 4 (part), 2011; Ord. 1203 § 1 (part), 2003; Ord. 653 § 8, 1985).
3.32.090 Increase of funds maintained.
If permitted by law and provided by ordinance of the city council, increases to the amount of funds maintained in the local improvement guaranty fund may be provided for out of the proceeds of local improvement district bonds and may be assessed against the property owners or may be provided directly out of assessments against the property owners within the city’s local improvement districts, the obligations of which are guaranteed by the local improvement guaranty fund. (Ord. 653 § 9, 1985).