Chapter 4.24 LOCAL IMPROVEMENTS

The ordinance codified in this chapter establishes a procedure for the determination of necessity of and method of payment of local public improvements pursuant to Section 8.1 of the City Charter and AS 29.45.580. Upon direction or authorization of the City Council, the Mayor shall make a report to the City Council concerning a proposed special assessment district or differential tax zone. The report shall contain a description of the improvement proposed and its estimated cost, the location of the improvement, a general description of the extent of the proposed assessment district or differential tax zone, and a recommendation as to whether or not to proceed with the improvement. The report of the Mayor may be made either before or at the time of the hearing of the public on the necessity for the proposed improvement as established in NPMC 4.24.020. (Ord. 80-6 § 1, 1980)

4.24.020 Public hearing.

The City Council shall hold a public hearing on the necessity for the local improvement after a notice of hearing has been given by publication and mail. Notice of the public hearing shall be published in a newspaper of general circulation in the City for at least once a week for two consecutive weeks prior to the time fixed for the hearing. The Mayor shall, at least fifteen days prior to the hearing, send by first class mail to each owner of property to be assessed or taxed differently, at his last known address, written notice. The notice to be published shall include a summary of the improvement, the designation of the properties to be assessed in the special assessment district or taxed at a higher property tax mill rate in the differential tax zone the purpose of the public hearing and the time and place fixed for the public hearing. The notice by mail shall include a summary of the improvement, the designation of the addressee’s property to be assessed or taxed differently, purpose of the public hearing, the amount of estimated or actual assessment against the property or proposed higher property tax mill rate, estimated property tax increase and the time and place fixed for the public hearing. Each notice shall generally inform the property owner of the manner and method of protesting and objecting to the action to be taken at the public hearing. At the time of the hearing, the Mayor shall report to the City Council concerning the number of property owners protesting in writing that was recorded with the Clerk as of the close of business on the day preceding the hearing, and state the percentage of the estimated cost that protesting owners represent. If protests in writing as to the necessity of a local improvement are filed with the City Clerk to or at the hearing by the owners of property who shall bear fifty percent or more of the estimated cost of the improvement, the City Council shall proceed in the manner and mode directed by Section 8.2 of the City Charter. After hearing all interested persons favoring or opposing the proposed improvement, the City Council may decrease the extent or value of the improvement, and may delete from the district properties not benefited by the improvement. (Ord. 80-6 § 2, 1980)

4.24.030 Assessment ordinance.

After the public hearing is closed, the City Council shall adopt an ordinance determining either to proceed or not to proceed with the proposed improvement. The ordinance to proceed shall find that the improvement is necessary and will benefit the properties within the district or differential tax zone. The findings of the City Council are conclusive. The ordinance shall contain a description of the improvement and its location, the estimated cost of the improvement, the authorized percentage of the cost or mill rate to be assessed or taxed against the properties in the district or differential tax zone, and a description of the properties to be assessed or taxed. The properties shall be defined by legal description as recorded in the latest City tax roll. The ordinance shall require an account to be kept of all costs of the improvement and direct the Mayor to record the ordinance with the district recorder and prepare the assessment roll or differential tax zone roll. (Ord. 04-07 § 2, 2004; Ord. 80-6 § 3, 1980)

4.24.040 Assessment or differential tax zone roll.

After the improvement has been completed and the cost of the improvement computed, the Mayor shall prepare an assessment roll or differential tax zone roll for the special assessment district or differential tax zone. The assessment roll or differential tax zone roll shall contain as to each parcel of property to be assessed a brief description or designation of the parcel, the name of the owner or reputed owner of the parcel and the amount to be assessed or taxed against the parcel. When the assessment roll or differential tax zone roll is completed, the City Council shall fix a time and place for a public hearing on objections to the assessment roll or differential tax zone roll. The public hearing shall be held after the notice procedure fixed in NPMC 4.24.020. (Ord. 04-07 § 2, 2004; Ord. 80-6 § 4, 1980)

4.24.050 Conduct of hearing.

At the public hearing the owner of the property to be assessed or taxed shall have the right to present his objection to the assessment roll or differential tax zone roll by showing errors and inequalities in the assessment roll or differential tax roll and submitting any reason for amendment or correction of the assessment roll or differential tax zone roll. The public hearing may be continued from time to time as the City Council directs. After the public hearing, the City Council may correct any error or inequality in the assessment roll or differential tax zone roll. When the roll is finally determined, the Clerk shall so certify. (Ord. 04-07 § 2, 2004; Ord. 80-6 § 5, 1980)

4.24.060 Confirmation.

After the public hearing and determination of the assessment roll or differential tax zone roll, the City Council by resolution shall confirm the special assessment roll or differential tax zone roll of the special assessment district or differential tax zone roll. The resolution shall provide for the levy and payment schedule of the assessments or differential tax mill rate and the date on which unpaid assessments become delinquent. (Ord. 04-07 § 2, 2004; Ord. 80-6 § 6, 1980)

4.24.070 Records.

A. The Mayor shall file on record with the district recorder all ordinances creating or establishing assessment districts.

B. The Mayor shall file on record with the Borough Property Assessor all ordinances creating or establishing a differential tax zone.

C. Failure to file an ordinance as required by subsection (A) of this section shall not operate as to impair any right or interest the City has in any property within an assessment district under applicable municipal ordinances or State law. (Ord. 04-07 § 2, 2004; Ord. 80-6 § 7, 1980)

4.24.080 Property assessed or levied a different property tax mill rate.

The City Council may assess or tax for an improvement on any real property specially benefited, or any interest in real property specially benefited, and the property specially benefited may include abutting, adjacent, contiguous, noncontiguous or other property or interests in property benefited directly or indirectly by the improvement. The property to be assessed or taxed may include any property which is otherwise for any reason exempt from taxation by law. A benefited property may be included in whole or in part in one or more special assessment districts or differential tax zones. (Ord. 04-07 § 2, 2004; Ord. 80-6 § 8, 1980)

4.24.090 Property subject to Horizontal Property Regimes Act.

In the case of a parcel which, but for the provisions of the Alaska Horizontal Property Regimes Act, would be specially assessed for a portion of the costs of a public improvement as set forth in this chapter, the assessment or tax which would otherwise be levied against the parcel shall be levied pro rata against each apartment according to its appurtenant percentage interest in the common areas and facilities. (Ord. 04-07 § 2, 2004; Ord. 80-6 § 9, 1980)

4.24.100 Planned unit developments.

Parcels containing planned unit developments not subject to the Alaska Horizontal Property Regimes Act and which include lands held both individually and in common shall have their proportionate share of an assessment or taxes levied against the common ownership only. (Ord. 04-07 § 2, 2004; Ord. 80-6 § 10, 1980)

4.24.110 Property owner determination.

The owner or owners listed on the latest municipal tax roll as the owner of the property to be assessed or taxed is presumed to be the legal owner of the property. If the property owner is unknown, the property may be assessed or taxed in the name of the “unknown owner.” If the property is correctly described, no assessment or differential property tax mill rate is invalidated by a mistake, omission or error in the name of the owner. (Ord. 04-07 § 2, 2004; Ord. 80-6 § 11, 1980)

4.24.120 Amount assessed.

The City Council may assess one hundred percent of any or all costs of a public improvement against the parcels of property benefited by the improvement. In spreading assessments the cost of the improvement shall be assessed in proportion to the area (square footage) of each lot, tract or parcel that abuts upon or is beneficially affected by such improvement. The area to be assessed shall extend back not more than two hundred feet from the marginal edge of any property. However, in no event shall any square footage be assessed more than once per improvement. (Ord. 80-6 § 12, 1980)

4.24.125 Amount taxed.

The City Council may levy a differential property tax mill rate to pay for one hundred percent of any or all costs of a public improvement against the parcels of property benefited by the improvement. Once the debt incurred for the public improvement has been paid in full, the differential property tax mill rate will be removed from all properties in the differential tax zone. (Ord. 04-07 § 2, 2004)

4.24.130 Time payment periods.

Time payment schedules for payment of assessments for the various improvements shall be adopted by the City Council by resolution, and may be adjusted from time to time in the same manner. (Ord. 80-6 § 13, 1980)

4.24.140 Assessment or differential property tax mill rate notices.

Within thirty days after the resolution confirming the assessment roll or differential property tax mill rate roll and fixing the date of delinquency is adopted pursuant to NPMC 4.24.060, the treasurer shall mail a notice to any owners of property whose assessment or tax, schedule of payments, delinquencies or amount of penalty or interest has been changed as a result of the hearing on the assessment roll or differential tax zone roll. The notice shall designate the property, the amount of the assessment or differential property tax mill rate, the schedule of payments and delinquencies and the amount of the penalty and interest. Not more than sixty nor less than thirty days before the date the assessment or the first installment of the assessment becomes delinquent, the treasurer shall mail a payment notice to each property owner, but the failure to mail the notice shall in no way affect liability for or enforcement of payment of all or any part of the special assessment. (Ord. 04-07 § 2, 2004; Ord. 80-6 § 14, 1980)

4.24.150 Assessment payment – Delinquency – Interest and penalty.

The City Council in the resolution confirming the assessment roll pursuant to NPMC 4.24.060 shall fix a schedule of dates when the special assessment or special assessment installment payment becomes due and delinquent. Deferred or installment payments may bear interest, at a rate not to exceed eight percent per year, from the date of the confirmation of the assessment roll until paid. No payment shall be required before sixty days after the resolution. A penalty of eight percent shall be added to any assessment or assessment installment not paid before the date of delinquency, and both the unpaid amount and penalty shall draw interest at the rate of eight percent per year until paid. Penalty and interest may be waived by the chief fiscal officer where the sum does not exceed $200 (two hundred dollars) and such penalty and interest accrued through no fault of the property owner so assessed. The City Council may waive penalty and interest where the sum exceeds $200 (two hundred dollars) and such penalty and interest accrued through no fault of the property owners so assessed. (Ord. 80-6 § 15, 1980)

4.24.160 Limitations on suits and actions.

No special assessment or differential property tax mill rate shall be contested in any civil action, unless commenced within sixty days after the confirmation of the special assessment roll or differential tax zone roll. If no such action is commenced, the procedure shall be conclusively presumed to have been regular and complete. (Ord. 04-07 § 2, 2004; Ord. 80-6 § 17, 1980)

4.24.170 Waiver of objections.

The irregularity or invalidity of any special assessment or differential tax zone or procedure is waived and may not be contested or questioned in any manner in any proceeding whatsoever by any person not filing a written objection to the assessment roll or differential tax zone roll prior to its confirmation. (Ord. 04-07 § 2, 2004; Ord. 80-6 § 18, 1980)

4.24.180 Cumulative enforcement.

The collection, foreclosure or enforcement of any installment or any part of a special assessment or differential property tax shall not bar, prevent or otherwise extinguish the right of the municipality to collect, foreclose or enforce the payment of any other installment or part of the same or any other special assessment. (Ord. 04-07 § 2, 2004; Ord. 80-6 § 19, 1980)

4.24.190 Appeal.

The decision of the City Council upon any objection to the assessment roll or differential tax zone roll may be reviewed by the Superior Court, Fourth Judicial District, Alaska, in the manner provided by law. (Ord. 04-07 § 2, 2004; Ord. 80-6 § 20, 1980)

4.24.200 Application of State law.

The City retains any right or procedure, not otherwise inconsistent with the provisions of this chapter, granted by law to a first class or home rule charter municipality for local improvements and special assessments or differential tax zones. (Ord. 04-07 § 2, 2004; Ord. 80-6 § 21, 1980)

4.24.210 Correction of invalid special assessments or differential property tax.

A. If any special assessment or differential tax procedure of the City Council is irregular or invalid for any reason, the City Council may correct the same at any time within ninety days after the confirmation of the special assessment roll or differential tax zone roll or after final determination of any litigation thereon, whether before or after the completion of the local improvement to which the special assessment or differential tax applies.

B. In the event that a court of competent jurisdiction orders that any or all of a special assessment or differential tax may not be assessed or levied or enforced by the City Council because of any irregular or invalid special assessment or differential tax procedure, the City Council may make a new assessment or differential tax zone or reassessment upon the properties specially benefited by the improvement by adopting a resolution to make a new assessment or differential tax or reassessment of the properties specially benefited by the improvement. The City Council in the resolution shall provide for the time and date of a public hearing on the new assessment differential tax or reassessment, shall direct the preparation of the assessment roll or differential tax zone roll and assess the appropriate assessment against the property in the district or levy the appropriate differential property tax mill rate. The procedures set forth in NPMC 4.24.020 through 4.24.180 shall be followed in making the new assessment or differential tax or reassessment, unless that procedure is in conflict with this section, in which event the provisions of this section shall apply. The previous findings of benefit and necessity for the improvement shall continue in full force and affect in any assessment or differential tax or reassessment unless invalidated by a court order.

C. In the event that findings of necessity and benefit are necessary to correct the irregular or invalid special assessment or differential tax, the City Council may proceed to make a new assessment or differential tax or reassessment of the property specially benefited by initiating a special assessment district or differential tax zone roll in accordance with NPMC 4.24.020 through 4.24.180.

1. In any new assessment or differential tax or reassessment by the City Council all sums paid upon the former assessment or tax shall be credited to the property upon any new assessment or differential tax zone roll or reassessment and the new assessment or differential tax or reassessment shall to that extent be deemed satisfied.

2. If a refund rather than a credit is determined, then the City Council, in the resolution confirming the assessment roll or differential tax zone roll, shall provide for a refund to the person having paid the amount of assessment or tax to be refunded.

3. No interest or penalty shall be charged on the original assessment.

D. The new assessment or reassessment when completed shall be enforced and collected in the same manner as other special assessments. (Ord. 04-07 § 2, 2004; Ord. 80-6 § 22, 1980)

4.24.300 Eminent domain.

Exercise of the powers of eminent domain and declaration of taking in accordance with AS 29.35, Eminent Domain, shall be exercised only if the Mayor has made reasonable but unsuccessful efforts to negotiate a purchase.

4.24.310 Exercise of the power of eminent domain limitation.

Exercise of the power of eminent domain by the City of North Pole is prohibited unless the property acquired thereby is actually used by the City or the public. Eminent domain is not to be used to further private economic development.