Chapter 3.16
LOCAL IMPROVEMENT
GUARANTY FUND
Sections:
3.16.010 Created – Purpose.
3.16.020 Statutes incorporated by reference.
3.16.030 Additional sources of funds.
3.16.040 Basis of assessments – Limiting improvements.
3.16.050 Degree of claim by holder of bonds, warrants.
3.16.010 Created – Purpose.
There is established for the city of Marysville a fund for the purpose of guaranteeing, to the extent of such fund, and in the manner hereinafter provided for, the payment of its local improvement bonds and warrants issued to pay for any local improvement orders. (Ord. 253 § 1, 1927).
3.16.020 Statutes incorporated by reference.
The following state statutes, including any amendments of the same which may hereinafter be enacted by the Washington State Legislature, are incorporated into this code by reference:
RCW
35.54.030 Source – Interest and Earnings
35.54.040 Source – Subrogation Rights to Assessments
35.54.050 Source – Surplus from Improvement Funds
35.54.060 Source – Taxation
35.54.070 Use of Fund – Purchase of Bonds, Coupons and Warrants
35.54.080 Use of Fund – Purchase of General Tax Certificates or Property on or After Foreclosure – Disposition
35.54.090 Warrants Against Fund
35.54.095 Transfer of Assets to General Fund
35.54.100 Deferral of Collection of Assessments for Economically Disadvantaged Persons
(Ord. 1756 § 2, 1990).
3.16.030 Additional sources of funds.
The aggregate of the final assessment roll for each local improvement district may be increased by a surcharge in an amount up to 10 percent of the same, and said surcharge, upon collection, shall be deposited in the local improvement guaranty fund.
As an alternative to an assessment surcharge, property owners within a local improvement district may, at their initiative, provide the city with letters of credit or other similar security satisfactory to the city for the purpose of guaranteeing the bonds issued for their LID. (Ord. 1756 § 3, 1990).
3.16.040 Basis of assessments – Limiting improvements.
No improvement shall be paid for, in whole or in part, by local assessment where the estimated cost of such improvement, if such cost is all to be assessed to the property in the district, or that portion of the estimated cost to be assessed, if a portion only of that said total cost is to be assessed, when added to all other outstanding and unpaid local improvement assessments against the property included in the district, excluding penalties and interest, shall exceed the actual value of the real property, exclusive of improvements thereon, within the district according to the valuation last placed upon it for the purposes of general taxation; provided, that when a local improvement is petitioned for by the owners of 75 percent of the area of the property within the district, and the petition requests that such limitation be exceeded, the city council may proceed with the improvement in the usual manner if the property owners so petitioning, or any of them, or any person in their behalf, shall deposit with the city a sum in cash equal to the amount that estimated cost of the improvement shall exceed the limitation herein before in this section provided. The sum so deposited shall be applied and credited on the assessment roll for collection; provided, further, that the city council may, by unanimous vote, order the construction of sanitary sewers and necessary accessories for the disposal of sewage, or for the construction of any sanitary fill, or for the filling of any street to the established grade over any tide flats or tidelands, in the manner provided by law, where in its judgment the same are necessary for public health, and may assess a part or the whole of the cost thereof to the property benefited, without regard to the foregoing limitation; provided, further, that no assessment for diking, draining, sanitary fill or for filling any street to the established grade over any tide flats or tidelands or for storm or sanitary sewers or water mains shall be included in any computation of outstanding assessments under the provisions of this section.
Before ordering any improvement hereunder the city council shall require and receive a report from the proper board, officer or authority designated by charter or ordinance, certifying in detail the local improvement assessments outstanding and unpaid against the property in the proposed district together with the aggregate of the actual value of the real property in the district, exclusive of improvement thereon, according to the valuation last placed upon it for the purpose of general taxation. In the absence of fraud or gross mistake, such certificate shall be final and conclusive. In computing the valuation of property in the district any non assessable railroad operating property or property owned by the United States or the state or a county, city, town, school district or other public corporation, shall be valued at the same rate as assessed property similarly situated. (Ord. 253 § 4, 1927).
3.16.050 Degree of claim by holder of bonds, warrants.
Neither the holder nor the owner of any bond or warrant issued under the provisions of RCW 35.45.070 shall have any claim therefor against the city by which the same is issued, except for payment from the special assessment made for the improvement for which said bond or warrant was issued, and except as against the local improvement guaranty fund occurring in the lawful operation thereof by the city. 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. A copy of the foregoing part of this section shall be plainly written, printed or engraved on each bond issued and guaranteeing hereunder, and the printing, writing or engraving shall be deemed sufficient compliance with the requirements of RCW 35.45.030. (Ord. 253 § 5, 1927).