Chapter 11.04
LOCAL IMPROVEMENTS AND SPECIAL ASSESSMENTS
Sections:
11.04.010 Chapter application and definitions.
11.04.020 Commencement of process for local improvements.
11.04.040 Hearing--Improvement resolution.
11.04.050 Notice of proposed assessment.
11.04.060 Notice of final assessment.
11.04.080 Interest rates and penalty fees.
11.04.090 Installment application.
11.04.100 Interest on assessments.
11.04.120 Segregation of assessments.
11.04.130 Application for segregation.
11.04.140 Curative provisions.
11.04.150 Errors in assessment calculations.
11.04.160 Duties of finance director.
11.04.170 Bancrofted assessment remedies.
11.04.180 Non-Bancrofted assessment remedies.
11.04.190 Collections--Foreclosure.
11.04.010 Chapter application and definitions.
This chapter applies to all city local public facility construction projects which are to be financed in whole or in part through special benefit assessments. As used in this chapter, the following terms are defined as follows unless a different meaning is clearly intended from the context:
A. “Actual cost” means all direct or indirect costs incurred by the city before assessment in order to undertake a local improvement. The term “actual cost” includes the portion of the total actual cost allocated to a particular lot. “Actual cost” includes, but is not limited to, the costs of labor, materials, supplies, equipment rental, property acquisition, permits, engineering, financing, reasonable program delinquencies, return on investment, required fees, insurance, administration, accounting, depreciation, amortization, operation, maintenance, and repair or replacement. Actual cost may include the salaries, wages and benefits payable to employees of the city to the extent the same are reasonably allocable to the work or services performed by the employees in connection with a local improvement. However, as a condition to inclusion of any salaries, wages or benefits payable to employees of the city as costs of a local improvement, the city shall establish a record keeping system to track the actual work done or services performed by each employee on or in connection with such local improvement.
B. “Bond issuance and administration costs” means all costs associated with issuance, registration, transfer and payment of bonds for long-term financing of assessments and systems development charges.
C. “Deferred improvement agreement” means an acknowledged and recorded agreement executed by a property owner which runs with the land in which the owner agrees that the city has jurisdiction to construct certain local improvements and assess a pro rata share of the cost against the owner’s property described therein. A “deferred improvement agreement” may also contain a nonremonstrance agreement.
D. “Estimated assessment” means, with respect to each property to be assessed in connection with a local improvement, the total assessment that, at the time of giving notice of the assessment and the right to object or remonstrate, the city estimates will be levied against the property following completion of the local improvement. The estimate shall be based on the city’s estimate at that time of the actual costs of the local improvement and the proposed formula for apportioning the costs to the property.
E. “Final assessment” means, with respect to each property to be assessed in connection with a local improvement, the total assessment levied against the property following completion of the local improvement. The total assessment shall be based on the actual costs of the local improvement and the formula for apportioning the actual costs to the property. Bond issuance costs shall be separately stated and shall not be entered on the lien docket unless and until the owner files an application to pay in installments. If bond issuance costs are added, the total amount shall then be deemed to comprise the “final assessment.”
F. “Finance director” means the department head designated by the city manager to keep records of assessments and installment payments.
G. “Financing” means all costs necessary or attributable to acquiring and preserving interim or permanent financing of a local improvement. Financing costs that are to be incurred after the levy of a final assessment may be included in the final assessment based on the city’s reasonable estimate of the financing costs if the city first documents the basis for the estimate and makes the documentation available to interested persons on request.
H. “Local improvement” means an improvement constructed by the city for which a special assessment may be made on property specially benefitted.
I. “Lot” means a platted lot or other contiguous parcel of land to which a single tax lot number has been assigned.
J. “Owner” means the owner of title to real property or the contract purchaser of real property of record as shown on the last available complete assessment roll in the office of the county assessor of Jackson County, Oregon.
K. “Remonstrance” means the ability of a property owner to object to the formation of a local improvement district. (Ord. 2029 §1(part), 2016; Ord. 1969 §1(part), 2013; Ord. 1855 §3(part), 2005).
11.04.020 Commencement of process for local improvements.
A. Local improvement construction projects may be initiated in any of the following ways:
1. The city manager may initiate a local improvement project whenever in his or her judgment such project would be in the best interest of the city; or
2. The city council may initiate a local improvement project by motion passed at a regular or special meeting of the city council; or
3. Upon receipt of a petition signed by more than fifty percent of the owners of street frontage or area of real property in the proposed benefit district, filed with the city recorder, whereupon the city manager shall initiate the local improvement process.
B. After initiation of the local improvement process by one of the methods set forth above, the city manager shall direct city staff to prepare preliminary plans, specifications and estimates of costs for the proposed local improvement project. City staff may consult, as deemed necessary, with applicable professionals in preparing such preliminary findings.
C. Upon completion of the preliminary plans, specifications and cost estimates by city staff, the city manager shall present such findings to the city council. After reviewing the findings, the city council may, by resolution, declare its intention to pursue construction of a local improvement project and set a date for a public hearing to consider public input on the proposed local improvement.
D. No public hearing shall be required in the event that each and every property owner included in the area to be benefited and assessed in the local improvement area has signed the petition requesting construction of the local improvement. In that case, the city council may, by resolution and without a public hearing, order construction of the local improvement in the manner set forth in Section 11.04.040. (Ord. 2029 §1(part), 2016; Ord. 1969 §1(part), 2013; Ord. 1855 §3(part), 2005).
11.04.030 Notice of hearing.
A. Notice of the hearing on the proposed local improvement shall be given by publishing in a newspaper of general circulation within the city at least ten days prior to the date of the hearing.
B. The published notice shall:
1. Specify the time and place the council will hear and consider the views of parties who have an interest in or are aggrieved by the proposed improvement;
2. Describe the general location and nature of the improvement, the area within which property may be specially assessed as described in the resolution; and
3. Identify the place where the project documents are available for inspection and the requirements for submitting written materials for consideration by the council.
C. In addition to notice by publication, the city shall, at least ten days prior to the hearing, mail notice to the owners whose property is to be assessed at the addresses shown in the records of the county assessor.
D. The mailed notice shall:
1. State that the council is considering an assessment for local improvements,
2. Describe the general location and nature of the improvement,
3. Identify the place where the project documents are available for inspection,
4. State the formula for apportioning costs and the amount of the estimated assessment on the property of the owner to whom the notice is addressed, and
5. Specify the time and place the council will hear and consider objections or remonstrances to the proposed improvement and the requirements for submitting written materials for consideration by the council. (Ord. 2029 §1(part), 2016; Ord. 1855 §3(part), 2005).
11.04.040 Hearing--Improvement resolution.
A. At the hearing, the council shall hear and consider objections and other representations made by owners, and shall hear and consider all other relevant information presented.
B. If the council determines that the proposed local improvement shall be made, it shall adopt a resolution ordering construction of the improvement. The resolution shall contain a legal description of the district and shall be recorded in the Official Records of Jackson County.
C. When the improvement has been so authorized, the city manager may invite bids or make other arrangements necessary for construction and any debt instruments may be issued for the cost thereof as provided by statute. (Ord. 2029 §1(part), 2016; Ord. 1969 §1(part), 2013; Ord. 1855 §3(part), 2005).
11.04.050 Notice of proposed assessment.
A. After the work is done and the actual cost determined, the city manager shall prepare the proposed assessments to the respective lots within the assessed district and file them in the office of the city. Notice of the proposed assessment shall then be mailed to the owner of each lot proposed to be assessed not less than ten days prior to the last day for filing written objections. The notice shall state the amount of the assessment proposed on the property, the date of the final hearing and shall specify a date by which written objections shall be filed with the city.
B. Written objections and supporting documents must be filed no later than five p.m. the day before the city council hearing. Objections filed shall state the grounds for the objection. At the final hearing, the council shall consider the objections and may adopt, correct, modify or revise the proposed assessments and shall by resolution finally determine the amount of the assessment to be charged against each lot within the area according to the special benefit accruing to it from the improvement and shall levy the final assessments. (Ord. 2029 §1(part), 2016; Ord. 1969 §1(part), 2013; Ord. 1855 §3(part), 2005).
11.04.060 Notice of final assessment.
Within fourteen days after the final assessment has been levied by the council, the city shall cause notice of the final assessment to be mailed to the owner of each lot to be assessed. Publication of the notice is not required. The notice shall identify the local improvement for which the assessment was levied and the final assessment for each lot. In addition, the notice shall state that the owner of any property to be assessed shall have the right to make application to the city for payment of the final assessment in installments as provided in ORS 223.210. The notice shall also state that if neither payment in full within thirty days nor an application for installment payments is made within ten days, from the date of the notice, interest will be charged on the assessment from the date of adoption of the assessment resolution and the property assessed will be subject to foreclosure. The notice shall be sent by certified and regular mail or personally delivered to the owner of each lot or parcel to be assessed. The city may also post the assessments in three public places and/or publish in the newspaper of record. (Ord. 2029 §1(part), 2016; Ord. 1855 §3(part), 2005).
11.04.070 Attachment of lien.
After enactment of the final assessment resolution, the finance director shall enter in the docket of city liens a statement of the amounts assessed against each lot, parcel of land, or portion of land, together with a description of the local improvement, the name of the owners, and the number and date of the assessment resolution. Upon entry in the city lien docket the amount entered shall become a lien against the respective lots, parcels of land, or portions of land that have been assessed for the improvement. All assessment liens of the city shall be superior and prior to all other liens or encumbrances on property as permitted by state law. The finance director may also record the assessment resolution in the Jackson County deed records. (Ord. 2029 §1(part), 2016; Ord. 1855 §3(part), 2005).
11.04.080 Interest rates and penalty fees.
The council may establish, in the assessment resolution, or by other resolution, interest rates, penalties, late payment charges, and collection charges on bonded and unbonded assessments. The interest rate shall take into account the city’s financial and administrative costs relating to assessments, issuance of bonds and collection and as further provided under Section 11.04.100. (Ord. 2029 §1(part), 2016).
11.04.090 Installment application.
A. A written application to pay in installments under the Bancroft Act shall be filed with the finance director within ten days after mailing of the notice of final assessment. However, an application may be accepted at the discretion of the finance director at any time unless the council has authorized foreclosure of the lien.
B. Bond issuance and administration costs shall be added to an assessment when the installment application is filed. Interest and billing charges shall be added to each assessment as they accrue. The city may enforce collection of the assessments in the manner prescribed by law.
C. Unless otherwise provided in the resolution levying the assessments, the application shall provide that the applicant agrees to pay the final assessment over a period of ten years from the date of assessment in equal semi-annual installments of principal plus interest on the unpaid balance, beginning six months after the date of assessment.
D. The application shall provide that the applicant acknowledges and agrees to pay interest at the rate provided by resolution on all unpaid assessments.
E. The application shall contain a statement, by lots or blocks, or other sufficient legal description, of the property of the applicant assessed for the improvement.
F. The application shall state that the applicant does thereby waive all irregularities or defects, jurisdictional or otherwise, in the proceedings to cause the local improvement for which the assessment is levied and in the apportionment of the actual cost of the local improvement.
G. An owner who elects to file an application to pay in installments shall agree to pay an additional amount to be added to the assessment to recover bond issuance and administration costs. This amount shall be determined by the city council at the time it levies the assessment based on a reasonable estimate of bond issuance and administration costs.
H. An owner who elects to file an application to pay in installments shall agree to pay a billing charge to be added to each installment. The billing charge shall be a prorated share of the actual cost of billing and keeping records of installment payment accounts. The amount of the billing charge shall be determined from time to time by the finance director.
I. A payment schedule will not be issued for any lien under one thousand dollars. (Ord. 2029 §1(part), 2016).
11.04.100 Interest on assessments.
A. All nondelinquent assessments levied by the city upon real property for local improvements shall bear interest on the unpaid balance thereof from the date the assessment is due and payable at the rate specified as follows:
1. From the date of the assessment to the date of the Bancroft bonds, issued for the cost of the improvement, the rate shall not exceed the interim financing rate plus one and one-half percent.
2. From and after the date of the Bancroft bonds sold to finance the improvement, the rate shall not exceed the net effective interest rate on the Bancroft bond issue plus one and one-half percent.
B. Assessments in which no installment application has been filed, levied by the city upon real property for incurred charges, shall bear interest on the unpaid balance from the date the assessment is due and payable at the rate three percent above the recorded interest rate set forth in subsection A of this section.
C. An assessment shall be deemed delinquent if any payment is not made within one hundred eighty days after it becomes due and payable. Delinquent assessments shall bear interest on the unpaid balance from the date the assessment is due and payable at the rate three percent above the recorded interest rate set forth in subsection A of this section. (Ord. 2029 §1(part), 2016; Ord. 1855 §3(part), 2005. Formerly 11.04.120).
11.04.110 Mailing of notices.
When a notice is sent by mail to the owner of a lot affected by a proposed assessment or a final assessment, the notice shall be addressed to the owner or his agent according to the records of the county assessor. (Ord. 2029 §1(part), 2016; Ord. 1855 §3(part), 2005. Formerly 11.04.080).
11.04.120 Segregation of assessments.
A. The city may apportion a special assessment imposed upon a single tract or parcel of real property among all the parcels formed from a subsequent partition or other division of that tract or parcel, if the subsequent partition or division is in accordance with ORS 92.010 to 92.160 and is consistent with all applicable comprehensive plans as acknowledged by the Land Conservation and Development Commission under ORS 197.251. The proportionate distribution of a special assessment authorized under this subsection may be made whenever the special assessment remains wholly or partially unpaid, and full payment or an installment payment is not due.
B. The city shall apportion a special assessment under this section when requested to do so by any owner, mortgagee or lienholder of a parcel of real property that was formed from the partition or other division of the larger tract of real property against which the special assessment was originally levied.
C. Apportionment of a special assessment under this section shall be in accordance with an order or resolution of the city council. The order or resolution shall describe each parcel of real property affected by the apportionment, the amount of the assessment levied against each parcel, the owner of each parcel and such additional information as is required to keep a permanent and complete record of the assessments and the payments thereon. A copy of the order or resolution shall be filed with the finance director, who shall make any necessary changes or entries in the lien docket.
D. When a special assessment is being paid in installments under the Bancroft Bonding Act or ORS 268.485, 450.155, 450.897 or 451.530, if the special assessment is apportioned among smaller parcels of real property under this section, the installments remaining unpaid shall be prorated among those smaller parcels so that each parcel shall be charged with that percentage of the remaining installment payments equal to the percentage of the unpaid assessment charged to the parcel upon apportionment. (Ord. 2029 §1(part), 2016; Ord. 1855 §3(part), 2005. Formerly 11.04.090).
11.04.130 Application for segregation.
A. Application to segregate shall be filed with the finance director on a form to be furnished by the finance director. The application shall include:
1. A lot book report from a title company showing copies of the deeds and other instruments evidencing all ownerships, other interests, and legal descriptions of the parcels to be segregated.
2. The original and segregated tax lot numbers, original and segregated assessed valuations, names and addresses of the owners and all others having an interest in the property, and any other relevant information requested by the finance director.
3. An express waiver of defects, jurisdictional or otherwise, in the original assessment.
B. The application shall be accompanied by a fee to be established by city council resolution.
C. If the finance director finds that the application is complete and proper, it shall be submitted to the city council along with a proposed resolution prepared in accordance with Section 11.04.050. Copies of the proposed resolution shall be mailed to all persons shown by the application to have an interest in the property at least ten days prior to the council meeting at which the resolution will be considered. The copy of the resolution shall be accompanied by a notice stating the date of the meeting and that all written objections filed with the finance director prior to the date of the meeting will be considered by the council. Oral objections will not be heard. (Ord. 2029 §1(part), 2016; Ord. 1877 §1, 2006; Ord. 1855 §3(part), 2005. Formerly 11.04.100).
11.04.140 Curative provisions.
An improvement assessment shall not be rendered invalid by any error, mistake, delay, omission, or irregularity in the proceedings, or because the declaring resolution, the assessment resolution, the lien docket or required notices do not contain the required information; or by the failure to list the name of, or mail notice to, the owner of any property as required by this chapter; or by reason of any other error, mistake, delay, omission, irregularity, or other act, jurisdictional or otherwise, in any of the proceedings or steps specified. The provisions of Sections 11.04.010 through 11.04.130 shall be directory and not jurisdictional. (Ord. 2029 §1(part), 2016; Ord. 1855 §3(part), 2005. Formerly 11.04.110).
11.04.150 Errors in assessment calculations.
Alleged errors in the calculation of assessments shall be brought to the attention of the manager, who shall determine whether there has been an error in fact. If the manager finds that there has been an error, the manager shall recommend to the council an amendment to the assessment resolution to correct the error. Upon adoption of the amendment, the manager shall make the necessary correction in the docket of city liens and mail correct notices of assessment to affected property owners. (Ord. 2029 §1(part), 2016).
11.04.160 Duties of finance director.
The finance director shall be custodian of the lien dockets and shall be charged with keeping records concerning bonded liens and assessments. (Ord. 2029 §1(part), 2016; Ord. 1855 §3(part), 2005. Formerly 11.04.140).
11.04.170 Bancrofted assessment remedies.
A. Before property owners are issued property related permits, owners must make all Bancrofted assessment accounts current for all their accounts with the city. Bancrofted assessment accounts must be current prior to individual sales of property.
1. Property related permits include development permits, building permits, wastewater permits, water permits, stormwater permits, driveway permits, sidewalk permits, and street opening permits.
2. To make a Bancrofted assessment account current, all delinquent principal, interest, and penalties must be paid.
B. For a land division, if the assessment balance is made current, the remaining principal balance of the assessment may be apportioned among the newly created lots according to the percent of benefit to each lot. The finance director shall determine the percent of benefit to the newly created lots. A land division shall include a partition, subdivision, or condominium plat.
C. If property owners wish to divide parcels of land and to have assessment balances apportioned among the newly created lots, they must make such requests in writing.
D. The council may establish by resolution a breakout fee for apportioning the assessment balance among the newly created lots. (Ord. 2029 §1(part), 2016).
11.04.180 Non-Bancrofted assessment remedies.
A. Non-Bancrofted assessments are due in full thirty days after enactment of the assessing ordinance and are subject to foreclosure if not paid within that time. The city may bid for property at foreclosure sales, which shall be prior to all bids except those by persons entitled to redeem such property under state law.
B. The entire assessment balance on an unpaid, non-Bancrofted assessment must be paid in full prior to sale of the property or before the city issues a property related permit. Property related permits are defined in Section 11.04.170(A)(1). (Ord. 2029 §1(part), 2016).
11.04.190 Collections--Foreclosure.
A. The city may implement collection procedures to collect payment of delinquent assessments. In the alternative to collection, or if collection efforts fail, the city may initiate foreclosure proceedings in any manner provided by ORS 223.505 to 223.650 or as otherwise provided by law.
B. Actual costs for materials and services, and personal services shall be charged to each foreclosure account. The costs shall be charged as they are incurred during the foreclosure process.
C. A purchaser of real property at a foreclosure sale may incur costs authorized by the city for maintaining or improving the property during the period allowed for redemption. If the property is subsequently redeemed, the finance director may return to the purchaser all or part of the penalty paid by the person redeeming the property. (Ord. 2029 §1(part), 2016).