Chapter 7.12


7.12.010    Fund created.

7.12.020    Amount of fund.

7.12.030    Source of fund.

7.12.040    Warrants against fund.

7.12.050    Use of fund.

7.12.060    Disposition of proceeds from operation of fund.

7.12.070    Maintenance of fund.

7.12.010 Fund created.

Pursuant to the authority conferred by Chapter 35.54 RCW, there is created a local improvement guaranty fund for the city of Ritzville, Washington, designated hereby as the “local improvement guaranty fund” of the city, for the purpose of guaranteeing, to the extent of such fund, and as provided by law and by this chapter of the payment of local improvement bonds and warrants, with interest thereon, issued subsequent to April 7, 1927, by the city. (Ord. 481 § 1, 1961).

7.12.020 Amount of fund.

Such local improvement guaranty fund may equal, but shall not exceed, five percent of the face of the outstanding local improvement bonds of the city guaranteed hereby and at any time outstanding. (Ord. 481 § 2, 1961).

7.12.030 Source of fund.

The city council shall, from time to time, for the purpose of maintaining said fund, levy as other taxes are levied, such sums as may be necessary to meet the financial requirements thereof; provided, that such sums so levied in any year shall not be more than sufficient to pay the outstanding warrants on said fund and to establish therein a balance which combined levy in any one year shall not exceed five percent of the outstanding obligations thereby guaranteed. The taxes levied herein authorized and directed shall be in addition to, and if need be, in excess of any and all statutory limitations now applicable to the tax levies of the city of Ritzville; and whenever the city shall have paid under its guarantee any sum on account of principal or interest of a local improvement bond or warrant, the city of Ritzville as trustee for said fund shall be subrogated to all the rights of the holder of such bond or interest coupon, or warrant so paid, and the proceeds thereof and/or of the assessment underlying the same, shall become a part of the guaranty fund. All surplus remaining in any local improvement fund, guaranteed and supported by this guaranty fund, after the payment of all outstanding bonds and warrants payable primarily out of such local improvement fund, and any interest received from bank deposits of the monies in such guaranty fund, shall be paid into the guaranty fund. (Ord. 481 § 3, 1961).

7.12.040 Warrants against fund.

Warrants drawing interest at a rate to be determined by the city council, not exceeding six percent per annum, shall be issued against said guaranty fund to meet any liability accruing against it, and at the time of making its annual budget and the tax levy in each year the city council shall provide for the levying of a sum sufficient, with the other resources of the fund, to pay warrants so issued during the preceding fiscal year; provided, that such warrants shall not exceed five percent of the outstanding bond obligations guaranteed by this guaranty fund. (Ord. 481 § 4, 1961).

7.12.050 Use of fund.

Whenever any local improvement fund or funds, against which bond and/or warrants are outstanding (being guaranteed under the provisions of this chapter and by the guaranty fund hereby created), shall not have sufficient funds to pay any matured principal and/or accrued interest, sufficient of the monies in such guaranty fund shall be paid there-out for the full payment and solution of such deficit or deficits; provided, that as among the several issues of bonds or warrants guaranteed by the fund no preference shall exist, but defaulted interest coupons, bonds and warrants shall be purchased out of the fund and paid thereout in the order of their presentation; and provided further that the fund shall be under no obligation to call or pay the principal of any local improvement bonds prior to the due date thereof. (Ord. 481 § 5, 1961).

7.12.060 Disposition of proceeds from operation of fund.

All proceeds and monies resulting from the leases and/or sales of real property, or of interests or estates therein, by the city in connection with the maintenance and operation of this guaranty fund and all other proceeds or monies resulting from and incident to or consequent upon the maintenance and operation of said guaranty fund shall belong to and be paid into the guaranty fund for use as a part of said guaranty fund in accordance with this chapter and with the law of the state of Washington. (Ord. 481 § 6, 1961).

7.12.070 Maintenance of fund.

The city of Ritzville shall have all the rights, duties and powers with reference to the maintenance and operation of such guaranty fund as permitted or enjoined by law and the officials of the city of Ritzville are hereby required and enjoined to do any and all things necessary for the establishment, maintenance, conduct and operation of said guaranty fund for the purposes specified in this chapter and as required by law; and the treasurer of the city of Ritzville is hereby authorized, directed and required to establish and maintain in his office as treasurer of the city of Ritzville the foregoing local improvement guaranty fund and to pay therein, and to pay thereout, and to maintain and to conduct said guaranty fund, strictly in accordance with the provisions of this chapter and as required by law; and the said city treasurer is further authorized, directed and required to maintain and keep in his office true and accurate accounts and records of all funds in, and all funds paid into, and all funds paid out of, said guaranty fund, together with a true and correct statement and record of the sources of all monies in said guaranty fund and the sources and origin thereof, together with a true and exact account and record of all bonds, warrants or interest paid or purchased, of tax certificates or lands purchased in the conduct thereof, and of the specific local improvement funds and of the bonds, warrants or interest thereof of any such local improvement funds for the purpose or solution of which, in whole or in part, the monies of such guaranty fund may be used. (Ord. 481 § 7, 1961).