Chapter 13.20
REIMBURSEMENT DISTRICTS
Sections:
13.20.030 Initiation and application.
13.20.040 Neighborhood meeting.
13.20.050 City Administrator’s report.
13.20.060 Alternative financing methods.
13.20.080 Notice of applicant and affected property owners of public hearing.
13.20.090 Establishment of reimbursement district.
13.20.100 Adoption of reimbursement resolution.
13.20.110 Notice of adoption of resolution.
13.20.120 Recording of resolution.
13.20.130 Term of reimbursement resolution.
13.20.140 Contesting the reimbursement district.
13.20.010 Purpose.
The purpose of this chapter is to provide a method to reimburse a person who finances the construction of a public improvement that has the capacity to serve development other than the development for which the improvement is built. The person seeking to finance the improvement must be deemed to pay all or a disproportionately large part of the improvement. The charge or charges paid by a benefitted property should be reasonably related to the use the benefitted property makes of the public improvement. The process set forth in this chapter is jurisdictional, and cannot be waived or extended and the failure of a person to follow the provisions of this chapter shall result in the City Administrator rejecting the application.
Statutory Reference: ORS Ch. 280
History: Ord. 1051 §1, 1985; Ord. 1346, 2004.
13.20.020 Definitions.
(1) “Administrative fee” as used in this chapter, means the amount of money charged by the city for costs of administering agreements, including, but not limited to, public meeting and hearing support, other personnel costs, mailing fees, legal fees and the costs to account, track and assess reimbursement charges to future development.
(2) “City Administrator” for the purposes of this chapter means the City Administrator for the City of Gladstone, or his designee.
(3) “Development” for the purposes of this chapter occurs when a structure or other use of land connects to or otherwise makes use of a sewer, water, stormwater or street improvement.
(4) “Improvement” for this chapter’s purposes means a “public improvement” under this chapter, unless otherwise stated.
(5) “LGIP” means local government investment pool.
(6) “Person” is a natural person, the person’s heirs, executors, administrators or assigns; a firm, partnership, corporation, association or legal entity, its successors or assigns; any agent, employee or any representative of the above or any other legal entity, including the City of Gladstone.
(7) “Processing fee” means an amount of money charged by the city for the costs of initially processing an application pursuant to this chapter, including the costs of producing the City Administrator’s report.
(8) “Public improvement” for this chapter’s purposes means either any or all of the following that will be dedicated to and accepted by the city:
(a) The construction, reconstruction or upgrading of any water, sanitary sewer or storm sewer system improvements;
(b) The construction, grading, graveling, paving or other surfacing of any street, or opening, laying out, widening, extending, altering, or changing the grade for construction of any street; or
(c) The construction or reconstruction of sidewalks.
(9) “Reimbursement charge” is the charge imposed upon development by this chapter for the costs of financing a public improvement that serves a development. A reimbursement charge is not intended to limit or replace, and is in addition to, any other existing fees or charges collected by the city.
(10) “Reimbursement district” is the area within which future development will potentially derive a benefit from the construction of public improvements financed, in whole or disproportionately large part, by a person without the formation of a local improvement district. A reimbursement district is limited to an area within the city and will be determined at the City Council’s discretion.
(11) “Reimbursement resolution” is a resolution of the City Council that identifies the potential reimbursement charge for future development within a reimbursement district.
(12) “Threshold amount” is the minimum dollar amount an applicant under this chapter must spend on a specific public improvement requested to be eligible to be included in a reimbursement district. The threshold amount pertains only to that portion of the improvement eligible for reimbursement under this chapter. The initial threshold amount shall be ten thousand dollars ($10,000.00) and shall be adjusted from time to time by resolution at the City Council’s discretion.
Statutory Reference: ORS Ch. 280
History: Ord. 1051 §1, 1985; Ord. 1093 §1, 1988; Ord. 1346, 2004.
13.20.030 Initiation and application.
(1) Any person may choose, or pursuant to a land use decision approval may be required, to construct a public improvement that costs in excess of the current threshold amount. If this person finances the improvement, in whole or disproportionately large part, and the improvement will or could provide service to development other than the development owned by that person or for which the improvement is built, that person may apply to the city to form a reimbursement district.
(2) An application or reapplication to establish a reimbursement district shall be in writing, shall be filed with the City Administrator, and shall be accompanied by a processing fee established by resolution of the City Council.
(3) The application or reapplication shall include the following:
(a) A description of the location, type and capacity of the public improvement proposed to be the basis for the reimbursement district;
(b) A narrative statement explaining why the person financing the public improvement believes all or part of the cost of the public improvement is eligible for reimbursement pursuant to this chapter. This statement shall clearly indicate that only the costs of improvements not benefitting the person’s property are subject to reimbursement;
(c) A map showing the area proposed to be included in the proposed reimbursement district and indicating the following information:
(A) The comprehensive plan designation, and zoning for each property in the proposed reimbursement district;
(B) The frontage length and square footage of each property within the proposed reimbursement district, or other similar data necessary for calculating the apportionment of the costs; and
(C) Identification of the properties owned by the person applying for the reimbursement district, or in the alternative, those properties benefitting from the improvement and being developed by the person.
(d) Legal descriptions of all or some of the properties within the proposed reimbursement district, if requested by the City Administrator.
(e) Mailing labels for notice to all parties entitled to receive mailed notice of the application. The person applying for the reimbursement district shall use the names and addresses of property owners within the notice area indicated on the most recent property tax roll. This may require the person applying for the reimbursement district to resubmit additional labels depending on the final report’s recommendations;
(f) A proposed methodology for calculating costs to future development in the reimbursement district. The City Administrator may be able to provide possible methodologies to the person applying for the reimbursement district, however, use of a methodology suggested by the City Administrator shall not guarantee approval of either the methodology or the reimbursement district;
(g) The estimated costs of the public improvement to be reimbursed as evidenced by bids, projections of the cost of labor and materials, or other evidence satisfactory to the City Administrator; and
(h) The date the public improvement is estimated to be complete.
(4) The City Council finds that it is in Gladstone’s best interest for a district to be established, if at all, prior to the construction of public improvements. Therefore, the initial application for formation of a reimbursement district shall be made before city approval of specific reimbursement district portions of construction plans and authorization to proceed with the construction of the portions of public improvements. The person applying for the reimbursement district may proceed at their own risk with the construction of the public improvements prior to City Council authorizing the reimbursement district. However, in such cases, if the City Council does not authorize the district, the person applying for the reimbursement district shall be responsible for the full cost of the public improvement.
(5) If the person applying for the reimbursement district desires to reapply after a district is not created, that person shall submit a new application and processing fee.
Statutory Reference: ORS Ch. 280
History: Ord. 1051 §1, 1985; Ord. 1346, 2004.
13.20.040 Neighborhood meeting.
(1) Within six weeks of submitting the application, the applicant shall conduct a neighborhood meeting regarding the proposed reimbursement district in a location within or adjacent to the proposed district, or in a location determined to be appropriate by the City Administrator.
(2) The applicant shall mail a Notice of Application and Neighborhood Meeting to the owners of record of all properties within the proposed reimbursement district at least 14 days prior to the neighborhood meeting. The notice shall contain such information as directed by the City Administrator and a signed affidavit of mailing shall be submitted to the city within five days of mailing.
(3) At the neighborhood meeting, the applicant shall describe the proposed reimbursement district, city staff shall explain the reimbursement process, and all owners and/or their representatives may comment and/or request additional information.
(4) The City Administrator may waive the neighborhood meeting if in the best interest of the city.
Statutory Reference: ORS Ch. 280
History: Ord. 1051 §1, 1985; Ord. 1346, 2004.
13.20.050 City Administrator’s report.
(1) The City Administrator shall review the application for the establishment of a reimbursement district and recommend whether a district should be established. The City Administrator may request the submittal of other relevant information from the person applying for the reimbursement district in order to assist in the evaluation. The City Administrator shall prepare a written report for the City Council that:
(a) Recommends whether or not the reimbursement district should be formed;
(b) Explains whether the person applying for the reimbursement district proposes to finance some or all of the cost of a public improvement to make service available to property, other than property owned by the person applying for the reimbursement district;
(c) Recommends the area in the city that should be included in the reimbursement district;
(d) States the estimated cost of the public improvement to be included in the proposed reimbursement district and the portion of the cost for which the person applying for the reimbursement district should be reimbursed. The cost to be reimbursed to the person applying for the reimbursement district shall be limited to those costs associated with the construction of the improvements and as allowed by this chapter, but shall not include the following:
(A) Costs for that portion of the improvement that specifically benefits the person’s property.
(B) Costs of improvements that will not be dedicated to and accepted by the city as a public improvement.
(C) Costs for public improvements that are required as a condition of development approval and constructed on the development’s site, except in cases where the nature and degree of the public improvement is disproportionate to the impacts of the development, or where the city requires an oversized or additional improvement beyond that which is roughly proportional to the impacts of the development.
(D) Costs for relocation of electrical, telephone, cable television, natural gas or other utility relocation across the person’s subject frontage.
(E) Costs for extra work or materials required to correct construction deficiencies to bring an otherwise noneligible improvements up to city standards.
(F) Costs for sewer, water, stormwater or street improvements that are the city standards to serve the person’s property.
(G) Costs for street realignment, except for the cost of right-of-way acquisition beyond the limits of the development frontage along the improved street.
(H) Costs for administering the reimbursement agreement between the city and the person applying for the reimbursement district.
(I) Costs associated with legal expenses related to the construction of the improvements or the establishment of a district under this chapter.
(e) Recommends a just and reasonable methodology for allocating the cost of the public improvement to future development in the reimbursement district. The methodology shall consider, as relevant, the cost of the public improvement, contributions by property owners, the value of the unused capacity, the benefit the unused capacity will have to future development, rate making principles employed to finance public improvements and any other factors deemed relevant by the City Administrator.
(f) Recommends an interest rate, or no interest rate, be added to the reimbursement charge.
(g) Recommends an appropriate administrative fee and includes a recommendation on whether the City Council should impose late fees on reimbursement charges that are not paid within thirty calendar days of the date the reimbursement charge is imposed.
Statutory Reference: ORS Ch. 280
History: Ord. 1051 §1, 1985; Ord. 1346, 2004.
13.20.060 Alternative financing methods.
Nothing contained in this chapter shall preclude the city from using any other available means of financing public improvements, including but not limited to city funds, federal or state grants-in-aid, user charges or fees, system development charges, revenue bonds, general obligation bonds, or any other legal means of finance. In the event that such other means of financing improvements are used, the Administrator may recommend and the City Council may allocate costs to properties according to the benefits derived to pay any remaining part of the reasonable actual costs of the public improvement.
Statutory Reference: ORS Ch. 280
History: Ord. 1051 §1, 1985; Ord. 1346, 2004.
13.20.070 Public hearing.
(1) The council shall hold a public hearing on the proposed reimbursement district at which time any person may comment on the proposal. The hearing shall be held at the next practical time after preparation of the Administrator’s Report.
(2) The hearing is for informational purposes only, and a formation of the reimbursement district does not result in an assessment against property or lien against property. Therefore, the process is not subject to mandatory termination because of remonstrance.
(3) The City Council has the sole discretion after the public hearing to decide whether a resolution forming the reimbursement district shall be adopted.
Statutory Reference: ORS Ch. 280
History: Ord. 1051 |1, 1985; Ord. 1346, 2004.
[Ed. Note: The publication(s) referred to or incorporated by reference in this ordinance are available from the office of the City Recorder.]
13.20.080 Notice of applicant and affected property owners of public hearing.
Notice of the hearing shall be mailed by the city to the applicant and all owners of property within the proposed district as shown on the most recent county assessor’s assessment roll. Notice shall be deemed effective on the date of mailing. Failure of the applicant or any affected property owner to receive the notice shall not invalidate or otherwise affect the public hearing or the formation of the reimbursement district. Notice of the hearing shall be mailed by regular mail at least 14 days before the date of the hearing. The notice shall:
(1) State that a reimbursement district has been proposed and that includes the property of the person receiving notice.
(2) Briefly describe the reimbursement district; the public improvement to be reimbursed, the estimated amount of the reimbursement charge, and the circumstances under which the charge must be paid.
(3) Include a copy of the Administrator’s Report.
(4) State the time, date and place of the public hearing and that any person may appear and be heard.
Statutory Reference: ORS Ch. 280
History: Ord. 1051 §1, 1985; Ord. 1130 §1, 1990; Ord. 1346, 2004.
13.20.090 Establishment of reimbursement district.
(1) After the public hearing is held, the council shall approve, reject or modify the recommendations contained in the Administrator’s Report. The council’s decision, if a reimbursement district is established, shall be embodied in a formation resolution.
(2) The formation resolution shall include the Administrator’s Report as approved or modified and identify the estimated costs assigned to each parcel.
(3) An administrative fee shall be fixed by the City Council and shall be included in the resolution approving and forming the reimbursement district.
Statutory Reference: ORS Ch. 280
History: Ord. 1051 §1, 1985., Ord. 1346, 2004.
13.20.100 Adoption of reimbursement resolution.
(1) Within sixty (60) days after the project is completed and accepted by the city, the applicant shall submit to the city the final costs and the proposed assignment of costs to each benefiting party.
(2) The actual costs and allocation of costs must be approved by the city. The applicant shall submit sufficient documentation to establish the reasonableness of the actual costs. The City Administrator may request additional information and conduct such audit and review as deemed necessary to verify the actual costs or establish reasonableness. Any significant increase between estimated costs and actual costs shall be presumptively unreasonable.
(3) The City Administrator shall prepare a proposed reimbursement resolution recommending actual costs and allocation of cost to be approved by the council. The reimbursement resolution shall assign costs to each benefited parcel based on the methodology approved by council the formation resolution.
(4) The city shall provide mailed notice of the proposed reimbursement resolution to the applicant and all owners of property within the proposed district. The notice shall state the amount of the reimbursement charge proposed for each property and include a copy of the proposed reimbursement resolution. Notice shall be deemed effective on the date of mailing. Notice shall be mailed by regular mail 14 days before the date of the council action on the reimbursement resolution.
(5) The City Administrator shall submit the proposed reimbursement resolution to the council for approval.
(6) The council shall approve or modify the proposed reimbursement resolution. When the applicant is other than the city, the resolution shall instruct the City Administrator to enter into agreement with the applicant pertaining to the reimbursement district improvements. The agreement shall contain such provisions as the Administrator deems necessary for the collection and payment of the Reimbursement Charge.
Statutory Reference: ORS Ch. 280
History: Ord. 1051 §1, 1985; Ord. 1346, 2004.
13.20.110 Notice of adoption resolution.
The city shall notify all property owners within the district and the applicant of the adoption of a reimbursement resolution. The notice shall include a copy of the reimbursement resolution, the date it was adopted and a short explanation of when the property owner is obligated to pay the reimbursement charge and the amount of the charge.
Statutory Reference: ORS Ch. 280
History: Ord. 1051 §1, 1985; Ord. 1346, 2004.
13.20.120 Recording the resolution.
The Administrator shall record the reimbursement resolution in the office of the county recorder so as to provide notice to potential purchasers of property within the district. The recording shall not create a lien. Failure to make such a recording shall not affect the legality of the reimbursement resolution or the obligation to pay the reimbursement charge.
Statutory Reference: ORS
History: Ord. 1133 §1, 1990; Ord. 1151 §5, 1991; Ord. 1346, 2004.
13.20.130 Term of reimbursement resolution.
The Reimbursement Resolution shall be valid for a period of 10 years from the date of adoption. The applicant or assignee of the right to reimbursement may request that the reimbursement resolution be renewed for one (1) additional ten-year term by giving the City Administrator written notice of such request not less than 90 days prior to the date of expiration. The City Council shall have the sole discretion in deciding whether to renew the resolution.
Statutory Reference: ORS
History: Ord. 1346, 2004.
13.20.140 Contesting the reimbursement district.
A writ of review pursuant to ORS 34.010 to 34.102 shall be the exclusive means to contest the formation of the district or reimbursement charge, including the amount of the charge designated for each parcel. Any writ challenging the propriety of a district’s formation shall be filed no earlier than the adoption of a resolution under 13.20.090 and no later than 60 calendar days following the adoption of said resolution. Any writ challenging a reimbursement charge shall be filed no earlier than the adoption of a resolution under 13.20.100 and no later than 60 calendar days following the adoption of said resolution.
Statutory Reference: ORS
History: Ord. 1346, 2004.