Chapter 13.20 PUBLIC IMPROVEMENTS

The council may assess the costs of an improvement against any real property or interest in real property specially benefitted by the improvement, including abutting, adjacent, contiguous, noncontiguous, or other property or interest in property benefitted directly or indirectly by the improvement. The property to be assessed may include property that is exempt by law from taxation. A benefitted property may be included, in whole or in part, in more than one special assessment district. [Ord. 440 §1, 1975]

13.20.030 Initiating assessment district

(a) A special assessment district may be initiated by the city council or by a petition from owners of property to be benefitted by the improvement.

(b) A petition to initiate a special assessment district must be filed with the city clerk in the form prescribed by the city manager and shall include a description of the improvement sought by the petition. The petition shall be signed by the owners of not less than one-half of the area of the property to be benefitted by the improvement. A signature on a petition for a special assessment district may not be withdrawn for a period of three months after the petition has been filed with the city clerk, unless authorized by the council, nor may it be withdrawn after passage of a resolution creating an assessment district.

(c) The council may initiate a special assessment district by motion or other action directing or authorizing the city manager to make a survey and report on a proposed special assessment district. [Ord. 1074 §1, 1998; Ord. 440 §1, 1975]

13.20.040 City manager action

(a) Upon receipt of the petition from the city clerk or authorization by the council, the city manager shall make a survey and report to the council concerning the need for and the estimated cost of the district. The report shall contain a plan defining the district, outlining the properties to be assessed, and showing the desirable extent of the proposed improvement. The district may be defined by:

(1) A boundary description; or

(2) A designation of the properties to be assessed within the district by lot, block, and subdivision, or if unsubdivided by other appropriate designation, which designation may generally refer to streets, alleys, and intersections.

(b) The report shall identify all public properties and rights-of-way to be included within the district and may be made either before or at the time of a public hearing on the necessity for the proposed improvement.

(c) The report shall also include a proposed assessment roll, containing a brief description of each property to be assessed, the name of the owner or reputed owner of the property, and the amount to be assessed against each property. [Ord. 1074 §2, 1998; Ord. 440 §1, 1975]

13.20.045 Assessment rates

The cost of a street improvement shall be allocated to the benefitted properties at a fixed rate per square foot of lot size. The rates at which properties are assessed and the maximum assessment amounts for street improvements shall be established by the council and may vary with the permitted use of the property according to zoning regulations, and may vary further with the nature of the street improvement. The total assessments for a given improvement project may equal, but shall not exceed, 100 percent of the cost of the improvement. The total cost of a public improvement that will significantly benefit the general public shall not be assessed against the specially benefitted properties included in the assessment district, but such properties may be assessed for the special benefit to them. [Ord. 1074 §3, 1998]

13.20.050 Notice of public hearing

(a) A notice of hearing on the proposed special assessment district shall be published at least once a week for two consecutive weeks in a newspaper of general circulation within the city limits and shall be mailed by first class mail to each property owner to be assessed at least 15 days prior to the time of the hearing. The notice shall include a summary of the improvement, a description of the properties to be assessed, the proposed assessment roll, the time and place fixed for the public hearing, and the purpose of the public hearing. The notice shall generally inform the property owners of the method for protesting or objecting to the action under consideration at the public hearing. The mailed notices shall specifically identify the property of the addressee proposed to be assessed.

(b) The person whose name is listed on the latest borough tax roll as the owner of property to be assessed is presumed to be the legal owner of that property. If the property owner is unknown, the property may be assessed using the designation “unknown owner” and notices required by this chapter may be mailed addressed to “property owner” at the street address of the property to be assessed, if known. No assessment is invalid because of a mistake, omission, or error in the name of the owner if the property is correctly described in published notices required by this chapter. [Ord. 1074 §4, 1998; Ord. 440 §1, 1975]

13.20.070 Public hearing

At the time specified in the notice, the council shall hold a public hearing on the necessity for the proposed improvement. Owners of properties to be assessed may also testify at this public hearing regarding errors or inequalities in the proposed assessment roll. All interested persons shall be provided an opportunity to be heard and the public hearing may be continued from time to time as the council may determine. [Ord. 1074 §6, 1998; Ord. 440 §1, 1975]

13.20.080 Council action

(a) After the public hearing, the council may decrease the extent or value of the improvement and may delete from the district properties not benefitted directly or indirectly by the improvement. If the improvement district is initiated by petition, no change may be made resulting in a district in which the petitioners would bear less than 50 percent of the amount to be assessed, unless other sufficient property owners are added to the petition prior to final council action on the petition.

(b) An assessment district shall not be created pursuant to a petition unless the council finds that the petition has been signed by a sufficient number of qualified property owners.

(c) If written objections to the necessity of a local improvement are received from the owners of property who will bear 50 percent or more of the amount to be assessed, the council shall not authorize construction of the improvement unless it revises the assessment plan to satisfy the objections and the protests are thereafter reduced to less than 50 percent, or creation of the improvement district is approved by an affirmative vote of at least five councilmembers. [Ord. 1074, 1998]

13.20.085 Resolution creating assessment district

(a) If the council determines that the improvement is necessary and will benefit the properties within the proposed district, it shall adopt a resolution creating the assessment district and authorizing construction of the improvements. The resolution shall require an accounting of all costs of the improvement.

(b) Unless otherwise provided in the resolution to proceed with the district, the area specially benefitted by a street improvement shall include all the property abutting, adjacent, or proximate to the street to be improved.

(c) The council shall correct all errors or irregularities which it finds to exist in the assessment roll and shall make such amendments to the assessment roll as it determines appropriate. The council shall then levy the assessments by confirming the assessment roll and setting the due and delinquent dates for payment of the assessments by including such provisions in the resolution creating the special assessment district. The due and delinquent dates may be set by reference to the completion of the street improvements project or by dates specific. The resolution may provide for payment of assessments in not more than 20 equal annual installments. The council may, at its discretion, charge an annual interest rate to be determined by the council.

(d) The city clerk shall sign the assessment roll certifying that it is the assessment roll as finally settled and confirmed by the city council.

(e) The findings of the council with regard to the necessity for an improvement, the benefit to properties within the district, and the sufficiency and qualification of the petitioners are conclusive. [Ord. 1074 §8, 1998; Ord. 687, 1983; Ord. 440 §1, 1975]

13.20.090 Filing of resolution

The city clerk shall file a copy of all council resolutions creating assessment districts with the district recorder. Failure to file a resolution as required by this section shall not operate to restrict or impair any right of the city to levy or collect an assessment for improvements. [Ord. 440 §1, 1975]

13.20.130 Assessments binding

The regularity or validity of a special assessment may not be contested or challenged by any person who does not file an objection to the assessment roll prior to its confirmation by resolution. [Ord. 440 §1, 1975]

13.20.140 Court review of assessments

(a) The decision of the council upon an objection to the assessment roll may be reviewed by the superior court in the manner prescribed by court rules.

(b) A special assessment procedure or decision may not be contested in a civil action unless that action is commenced within 60 days after the confirmation by resolution of the assessment roll. If an action is not commenced, the procedure shall be conclusively presumed to have been regular and complete. [Ord. 440 §1, 1975]

13.20.150 Notice of due and delinquent dates

(a) Within 10 days after adoption of the resolution fixing the due and delinquent dates for assessments, the city clerk shall mail a notice to the owner of each property assessed, with postage prepaid, setting forth the description or identification of the property, the amount of the assessment, the schedule of payments, the due and delinquent dates, the interest rate to be applied, and penalties that will be imposed for nonpayment.

(b) Within five days after mailing the notice to the property owners, the city clerk shall file an affidavit attesting to the fact of mailing. The affidavit shall be conclusive as to its facts, except in a proceeding against the clerk for perjury or for malfeasance, misfeasance, or nonfeasance in office.

(c) Not more than 60 nor less than 30 days before the due date of each payment on an assessment, the finance director shall mail a notice to each property owner advising of the payment due. A failure to mail the notice shall not affect any liability for or enforcement of payment of all or any part of a special assessment. [Ord. 440 §1, 1975]

13.20.160 Interest and penalty on delinquent assessments

A delinquent assessment or assessment installment shall bear interest at the rate of eight percent per year from its due date until payment. In addition to the interest, a penalty of 10 percent of the delinquent assessment or installment shall be imposed. [Ord. 440 §1, 1975]

13.20.170 Assessment liens

(a) A special assessment shall be a first, prior, and paramount lien upon the assessed property from the time when the assessment is levied by resolution. The lien is superior to all other liens except a lien for a prior assessment or for real property taxes.

(b) An assessment lien may be enforced in the same manner as provided in AS 29.45.330 through 29.45.470 for the foreclosure of real property tax liens.

(c) A foreclosure or enforcement of a lien for the collection of any installment or any part of a special assessment will not affect the right of the city to foreclose or enforce the lien for the collection of any other installment or part of a special assessment which subsequently becomes delinquent. [Ord. 440 §1, 1975]

13.20.175 Delayed payment for senior citizens

(a) Notwithstanding any other provisions of this chapter, assessment or assessment installments levied pursuant to this chapter with respect to real property which, at the time of passage of the resolution confirming the assessment roll and setting due and delinquent dates for payment of the assessments, is exempt from taxation of its assessed value under AS 29.45.030 by reason of its being a principal place of abode of a resident who is 65 years of age or over shall not be considered due or delinquent and any annual interest which may otherwise have been imposed against any such assessment pursuant to KCC 13.20.085 shall not accrue so long as said exemption remains in full force and effect. All assessment installments which have been deferred shall become due and payable immediately upon termination of the exemption and any annual interest assessed under KCC 13.20.085 shall also begin to accrue at that time. Nothing in this section shall be construed as releasing or otherwise affecting the assessment lien imposed by KCC 13.20.170.

(b) No exemption may be granted under this section except upon written application for the exemption on a form prescribed by the finance director and in accordance with the following requirements:

(1) The claimant must file the initial application during the period of time between the date the assessment roll is certified and the time of payment fixed by the council. Within one year of the date the assessment roll is certified, the council for good cause shown may waive the claimant’s failure to make timely initial application for the exemption and authorize the finance director to accept the application as if timely filed.

(2) A claimant receiving the exemption must file with the finance department by March 15 of each subsequent year a separate application proving eligibility as of January 1 in order to retain the exemption. Within the same year, the department for good cause shown may waive the claimant’s failure to make timely application and approve the application as if timely filed.

(3) If an application is filed within the required time under this subsection and is approved by the council, the exemption shall be allowed in accordance with the provisions of this section. If a waiver under this subsection is granted and the application for exemption approved, the amount of any assessment, penalty, or interest which the claimant may have already paid on the assessment shall be refunded. The city may at any time require proof in the form considered necessary of the right and amount of an exemption claimed under this section. [Ord. 1074 §10, 1998; Ord. 750, 1985]

13.20.240 Payment of assessments required for connection

When capital improvements have been constructed within a special assessment district in the city and assessments levied upon the property specially benefitted by such improvements for all or any portion of the cost of those improvements, a permit shall not be issued by the city for any storm or sanitary sewer connection or water connection from the property so assessed unless the assessment has been paid, or, if the assessment is payable in installments, all payments due at the time of application for the permit have been paid. [Ord. 440 §1, 1975]

13.20.250 Correction of invalid special assessments

(a) If a property owner within a special assessment district files timely objection with the city clerk, the council may, within 30 days after confirmation of the special assessment roll, correct any irregularity or defect found by the council to exist.

(b) If a court of competent jurisdiction invalidates or declares all or any portion of a special assessment to be unenforceable, the council may reassess the properties specially benefitted by the improvement at any time within one year following the date of decision. The procedure set forth in KCC 13.20.130 through 13.20.240 shall be followed in making the reassessment. The previous findings of benefit and necessity for the improvement shall continue in full force and effect for purposes of the reassessment unless the court has declared those findings to be invalid.

(c) If the court decision invalidates the findings of necessity and benefit, the council may proceed to reassess the property specially benefitted by a council-initiated special assessment district.

(d) All sums paid pursuant to an assessment invalidated by court order shall be credited toward the assessment levied on the property pursuant to a reassessment. If a refund, rather than a credit, is determined to be appropriate because of the excess of payments over the revised assessment, the resolution confirming the assessment roll shall provide for a refund to the persons who paid an amount in excess of the reassessment applicable to their property.

(e) No interest or penalty shall be charged or levied upon delinquency in payments or assessments subsequently determined to be invalid.

(f) Assessments levied through reassessment procedures shall be enforced and collected in the same manner that special assessments are enforced and collected. [Ord. 440 §1, 1975]

13.20.260 Application of state law

Adoption of the assessment procedures as set forth in this chapter shall not be construed to waive or nullify any right or procedure, not otherwise inconsistent with the provisions of this chapter, granted by law to a first-class or home rule city with regard to local improvements and special assessments. [Ord. 440 §1, 1975]