Chapter 3.08
LOCAL IMPROVEMENTS AND ASSESSMENTS

Sections:

3.08.010    Fund created and purpose.

3.08.015    Sources of funding.

3.08.020    Use of guaranty fund.

3.08.030    Transfer of assets to general fund.

3.08.040    Foreclosure of delinquent assessments.

3.08.050    Notice to property owner.

3.08.060    Acceleration of installments — Attorney’s fees.

3.08.070    Notice of right of redemption.

3.08.080    Form of notice of redemption right.

3.08.090    Service of notice of redemption right.

3.08.100    Failure to provide notice — Effect.

3.08.110    LID hearings.

3.08.010 Fund created and purpose.

Pursuant to the provisions of RCW Chapter 35.54, there is established a fund to be designated as the “local improvement guaranty fund,” for the purpose of guaranteeing, to the extent of such fund and in the manner provided by law, the payment of local improvement bonds and warrants issued by the city to pay for any local improvement ordered in the city. (Ord. 1426 § 1 (part), 1988: Ord. 157 § 1, 1952).

3.08.015 Sources of funding.

A. Taxation. 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 the other sources of the fund, to pay the 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. 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 and other limitations applicable to tax levies in the city.

B. Interest and Earnings. The local improvement guaranty fund shall be maintained in an interest-bearing account with the interest accrued to be paid into the fund; provided, that the city may invest funds maintained in the local improvement guaranty fund with the earnings to be paid into the fund, so long as the remaining net cash is not reduced below ten percent of the net outstanding obligations guaranteed by such funds.

C. Subrogation Rights to Assessments. Whenever any sum is paid out of the local improvement guaranty fund on account of principal bond or warrant, the city as trustee of the fund shall be subrogated to all the rights of the holder of the bond or interest coupon or warrant so paid, and the proceeds thereof, or of the underlying assessment, shall become part of the guaranty fund.

D. Surplus from Improvement Funds. If in any local improvement fund guaranteed by a 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 improvement guaranty fund. (Ord. 1426 § 1 (part), 1988).

3.08.020 Use of guaranty fund.

A. Purchase of Bonds, Coupons and Warrants. Defaulted bonds, interest coupons and warrants against local improvement funds shall be purchased out of the guaranty fund, and as between the several issues of bonds, coupons, or warrants no preference shall exist, but they shall be purchased in the order of their presentation.

B. Purchase of General Tax Certificates or Property on or After Foreclosure.

1. 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.

2. 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. Deferral of Collection of Assessments for Economically Disadvantaged Persons. 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 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. (Ord. 1426 § 1 (part), 1988: Ord. 157 § 2, 1952).

3.08.030 Transfer of assets to general fund.

A. The city, 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, may by ordinance transfer assets from such 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 ten percent of the net outstanding obligations guaranteed by such fund.

B. If, at any time within five years of any transfer of assets from the local improvement guaranty fund to the general fund of the city, the net cash of the local improvement guaranty fund is reduced below the minimum amount specified in subsection A of this section, the city shall, to the extent of the amount transferred, pay valid claims against the local improvement guaranty fund as a general obligation of the city. In addition, the city shall pay all reasonable costs of collection necessarily incurred by the holders of valid claims against the local improvement guaranty fund. (Ord. 1426 § 1 (part), 1988: Ord. 157 § 3, 1952).

3.08.040 Foreclosure of delinquent assessments.

If, on the first day of January, in any year, two installments of any local improvement assessment are delinquent, or if the final installment thereof has been delinquent for more than one year, the City Attorney is authorized to commence foreclosure proceedings on the delinquent assessment or delinquent installments by an appropriate action on behalf of the city in King County Superior Court. The foreclosure proceeding shall be in accordance with the provisions of RCW Ch. 35.50, as now exists or as may hereafter be amended. Such foreclosure proceedings shall be commenced on or before December 1, 1982, and thereafter on or before June 1 of each succeeding year. (Ord. 1087 § 2, 1982).

3.08.050 Notice to property owner.

The City Treasurer-Comptroller shall send by certified mail to each person whose name appears on the assessment roll and/or county tax rolls as owner of the property charged with any delinquent assessment or installment, at each address listed on said assessment roll and/or county tax roll, a notice at least thirty days before commencement of any action to foreclose a delinquent assessment or installment. The notice shall state the amount due on each separate lot, tract or parcel of land, and the date after which the foreclosure proceedings will commence. (Ord. 1087 § 3, 1982).

3.08.060 Acceleration of installments — Attorneys’ fees.

In any action brought for the foreclosure of a delinquent assessment or installment, future installments not otherwise due and payable shall thereupon be accelerated and the entire balance of the assessment with interest, penalty and cost shall become due and payable and the collection thereof shall be enforced by foreclosure as set forth in this chapter; provided, however, that in the case of such foreclosure there shall be added to the cost and expense as provided by RCW Ch. 35.50 such reasonable attorneys’ fees as the court may adjudge to be equitable, and the amount thereof apportioned to each delinquent assessment or installment appearing on the assessment roll. (Ord. 1087 § 4, 1982).

3.08.070 Notice of right of redemption.

Within sixty days of the sale of any property as a result of an action by the city to foreclose a local assessment lien, the purchaser of the property shall give notice in the form and manner provided hereinafter to the record owner or owners of the property as identified by a title report current as of the date of filing of the foreclosure action. Said notice shall again be given no less than sixty days prior to, nor more than one hundred twenty days prior to, the date of expiration of the period of redemption as provided by law. (Ord. 1087 § 5, 1982).

3.08.080 Form of notice of redemption right.

The notice of redemption right shall be substantially in accord with the following form, with all blanks properly filled in:

NOTICE OF REDEMPTION RIGHT

The real property located in the City of Redmond, King County, Washington, whose street address, if any, is ___________________, which is legally described as:

was sold on the ___ day of ___, 19___, to ____________________________, pursuant to court order to satisfy delinquent local improvement district assessment installments.

A title report shows that you are the record owner of the property. Please take notice that the sale of the property will become final and your right to redeem the property will be extinguished unless exercised prior to the expiration of two years from the date of the sale, to wit on or before

In order to redeem your property, you must take affirmative action in accord with Washington statutes governing the right of redemption or these rights will be lost.

(Ord. 1087 § 6, 1982).

3.08.090 Service of notice of redemption right.

Service of the notice provided in this chapter shall be deemed adequate on the production of one of the following:

(1) An affidavit evidencing personal service in accord with the procedures for in-person service of process in superior courts in the state of Washington;

(2) A receipt signed by the record owner evidencing actual receipt of the notice by mail;

(3) An affidavit that after diligent search, which at a minimum shall include the use of a commercial locating service, the record owner cannot be located, and affirming that  the notice has been mailed  by certified mail, return receipt requested, to the last known address of the record owner as determined from review of the title report, the current telephone directory for the area of the owner’s last known residence and consultation with the United States Postal Service regarding any forwarding address left by the owner. (Ord. 1087 § 7, 1982).

3.08.100 Failure to provide notice — Effect.

Failure to provide the notice of redemption rights as provided in this chapter shall not affect the validity of the legal action which foreclosed the city’s local assessment lien, provided that no final deed or other evidence of title shall be issued to the purchaser until compliance with the provisions of this chapter regarding notice of redemption rights has been demonstrated. In the event of failure to give the final notice in a timely manner, the purchaser shall be deemed to have consented to an extension of the record owner’s right to redeem which shall continue until sixty days have elapsed subsequent to fulfillment of the final notice requirements as set forth in this chapter and the record owner shall be entitled to redeem until said time. (Ord. 1087 § 8, 1982).

3.08.110 LID hearings.

As authorized by RCW 35.43.140 and 35.44.070, the City Council hereby delegates the function of conducting public hearings for the purpose of considering the formation of local improvement districts and hearings to consider final assessment rolls and the individual assessments upon property within local improvement districts to the City of Redmond Hearing Examiner and the Hearing Examiner is directed to conduct such hearings. (Ord. 1588 § 1, 1990).