Chapter 13.20
LOCAL IMPROVEMENT GUARANTY FUND

Sections:

13.20.010    Fund created – Tax levy as source of moneys.

13.20.020    Applicability of guaranty.

13.20.030    Amounts paid out of and into fund.

13.20.040    Warrants on fund – Interest – Order of payment.

13.20.050    Warrants on fund – Budgeting of funds.

13.20.010 Fund created – Tax levy as source of moneys.

There is established in the city a fund to be known and designated as “local improvement guaranty fund,” and for the purpose of maintaining the same the city shall levy from time to time, as other taxes are levied, such sums as may be necessary to meet the financial requirements thereof; provided, that such sum so levied in any year shall not be more than sufficient to pay the outstanding warrants on the fund and to establish therein a balance, which combined levy in any one year shall not exceed five percent of the outstanding obligations hereby guaranteed. The tax levy herein authorized shall be in addition to and if need be in excess of any statutory limitation applicable to tax levies of the city. (1958 code § 6.36.010)

13.20.020 Applicability of guaranty.

This guaranty of local improvement bonds shall apply and guaranty only bonds and warrants issued to pay for local improvements ordered since 12:00 midnight April 7, 1926. (1958 code § 6.36.020)

13.20.030 Amounts paid out of and into fund.

Whenever there is paid out of the guaranty fund any sum on account of principal or interest of a local improvement bond or warrant, the city, as trustee for the fund, shall be subrogated to all the rights of the holder of the bond or interest coupon or warrant so paid, which instrument so paid shall be surrendered and held by the city as trustee for the guaranty fund, and the proceeds thereof or assessment underlying the same shall become part of the guaranty fund. There shall also be paid into such guaranty fund the interest received from bank deposits of the fund and also any surplus remaining in any local improvement fund guaranteed after the payment of all outstanding bonds or warrants. (1958 code § 6.36.030)

13.20.040 Warrants on fund – Interest – Order of payment.

Whenever any overdue bond, coupon or warrant of any local improvement district hereby guaranteed is presented to the city clerk/treasurer, such clerk/treasurer shall draw a warrant against the guaranty fund to pay the bond, coupon or warrant, which warrant so drawn on the guaranty fund shall draw interest at the rate of two percent per year, and shall be payable only from such guaranty fund; provided, that such warrants shall at no time exceed five percent of the outstanding bond obligations guaranteed by the fund. No preference shall be exercised by the fund, and defaulted interest coupons, bonds or warrants shall be purchased or paid out of the fund in the order of their presentation. (1958 code § 6.36.040)

13.20.050 Warrants on fund – Budgeting of funds.

At the time of making its annual budget, the city shall levy a sum sufficient with the other sources of the fund to pay warrants so issued during the preceding fiscal year. (1958 code § 6.36.050)