Chapter 34 Finance

The purpose of this subchapter is to impose an equitable share of the public costs of capital improvements on development that creates the need for or increases demands on public infrastructure. The system development charges imposed herein are separate from and in addition to any applicable tax, assessment, charge or fee otherwise provided by law or imposed as a condition of development.

(Ord. 1938, passed 9-8-97; Am. Ord. 2328, passed 9-27-21)

34.02 DEFINITIONS.

For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

CAPITAL IMPROVEMENTS. Facilities or assets used for:

(1) Water supply, treatment and distribution;

(2) Sewer and wastewater collection, transmission, treatment and disposal;

(3) Drainage and flood control;

(4) Transportation; or

(5) Parks and recreation.

CAPITAL IMPROVEMENTS do not include costs of operation or routine maintenance of capital improvements.

DEVELOPMENT. Any construction of improvements on a site, including buildings, other structures, open areas such as plazas or walkways, parking and loading areas, water, sewer, and wastewater fixtures. It includes redevelopment of property requiring a building or connection permit.

IMPROVEMENT FEE. A fee for costs associated with capital improvements to be constructed after the date the fee is adopted pursuant to the provisions of this subchapter.

PARCEL OF LAND. A lot, parcel, block or other tract of land that is or may be occupied by a structure or structures or other use, and that includes the yards and other open spaces required under the zoning, subdivision or other development ordinances.

PERMITTEE. The person to whom a building permit, development permit or right-of-way access permit is issued.

QUALIFIED PUBLIC IMPROVEMENT. A capital improvement that is:

(1) Required as a condition of development approval and is identified in the master plan improvement or other applicable capital improvement plan; and is either

(2) Not located on or continuous to a parcel of land that is the subject of the development approval, or

(3) Is located in whole or in part on, or contiguous to, property that is the subject of development approval and is required to be built larger or with greater capacity than is necessary for the particular development project to which the improvement fee is related.

REIMBURSEMENT FEE. A fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to the provisions of this subchapter for which the city determines that capacity exists.

SYSTEM DEVELOPMENT CHARGE (SDC). A reimbursement fee, an improvement fee or a combination thereof assessed or collected at the time of increased usage of a capital improvement, at the time of issuance of a development permit or building permit, or at the time of connection to the capital improvement. It includes that portion of a sewer or water system connection charge that is greater than the amount necessary to reimburse the city for its average cost of inspecting and installing connections with water and sewer facilities. SYSTEM DEVELOPMENT CHARGE does not include fees assessed or collected as part of a local improvement district or a charge in lieu of a local improvement district assessment, or the cost of complying with requirements or conditions imposed by a land use decision, expedited land division or limited land use decision.

(Ord. 1938, passed 9-8-97; Am. Ord. 2328, passed 9-27-21)

34.03 SYSTEM DEVELOPMENT CHARGE IMPOSED.

Unless exempted pursuant to this subchapter, a system development charge is hereby imposed upon all development within the city and may be imposed by resolution on all development outside the boundary of the city that connects to or otherwise uses the sewer facilities, storm sewers, or water facilities of the city.

(Ord. 1938, passed 9-8-97; Am. Ord. 2328, passed 9-27-21)

34.04 METHOD FOR ESTABLISHMENT.

System development charges shall be established and may be revised by resolution of City Council. The resolution shall set the amount of the charge, the type of permit to which the charge applies, interest rates on deferred charges and, if the charge applies to a geographic area smaller than the entire city the geographic area subject to the charge and any other matters deemed appropriate by the City Council. The resolution may specify an inflation index and authorize the City Manager or designee to adjust the charge(s) pursuant to that index as provided in the resolution.

(Ord. 1938, passed 9-8-97; Am. Ord. 2328, passed 9-27-21)

34.05 METHODOLOGY.

(A) The methodology used to establish the reimbursement fee shall consider the cost of the then existing facilities, prior contributions by then existing system users, the value of unused capacity, rate making principles employed to finance publicly owned capital improvements, and other relevant factors specified in state law or identified by the City Council. The methodology shall promote the objective that future systems users shall contribute not more than an equitable share of the cost of then existing facilities.

(B) The methodology used to establish the improvement fee shall consider the cost of projected capital improvements identified in the master plan improvement or other applicable capital improvement plan needed to increase the capacity of the systems to which the fee is related; the need for increased capacity in the system to which the fee is related that will be required to serve the demands placed on the system by future users and other factors identified by the City Council. It will be calculated to obtain the cost of capital improvements for the projected need for available system capacity for future users.

(C) The city may not impose a system development charge that requires an employer, defined as any person who contracts to pay remuneration for, and secures the right to direct and control the services of any person, to pay a reimbursement fee or an improvement fee based on:

(1) The number of individuals hired by the employer after a specified date; or

(2) A methodology that assumes that costs are necessarily incurred for capital improvements when an employer hires an additional employee.

(D) The methodology for an improvement or reimbursement fee shall not include or incorporate any method or system under which the payment of the fee or the amount of the fee is determined by the number of employees of an employer without regard to new construction, new development or new use of an existing structure by the employer.

(Ord. 1938, passed 9-8-97; Am. Ord. 2328, passed 9-27-21)

34.06 ADOPTION OR AMENDMENT TO METHODOLOGY.

(A) The City Council shall hold a public hearing on the adoption or amendment of the methodology on which a system development charge is based. The methodology used to establish the improvement fee or the reimbursement fee, or both, shall be adopted by resolution or ordinance and must be available for public inspection.

(B) The city shall maintain a list of persons who have made a written request for notification prior to adoption or amendment to the system development charge methodology. Written notice shall be mailed to persons on the list at least 90 days prior to the first hearing to adopt or amend a system development charge and the methodology be available at least 60 days prior to the first hearing. The city may periodically delete names from the list but shall first provide at least 30 days’ notice to the person whose name is to be deleted that a new request for notification is required if the person wishes to remain on the notification list. Failure of a person on the list to receive notice that was mailed does not invalidate any action of the city.

(1) A change in the cost of materials, labor, or real property applied to projects or project capacity as set forth on the project plan;

(2) The periodic application of one or more specific cost indexes or other periodic data sources, including the cost index identified in § 34.04. A specific cost index or periodic data source must be:

(a) A relevant measurement of the average change in prices or costs over an identified time period for materials, labor, real property, or a combination of the three;

(b) Published by a recognized organization or agency that produces the index or data source for reasons that are independent of the system development charge methodology; and

(c) Incorporated as part of the established methodology or identified and adopted by the City Council in a separate resolution.

(Ord. 2328, passed 9-27-21)

34.07 AUTHORIZED EXPENDITURE.

(A) Reimbursement fees shall be applied only to capital improvements associated with the systems for which the fees are assessed, including expenditures relating to repayment of indebtedness.

(B) Improvement fees shall be spent only on capacity increasing capital improvements, including expenditures relating to repayment of debt for improvements. An increase in system capacity occurs if a capital improvement increases the level of performance or service provided by existing facilities or provides new facilities. The portion of the improvements funded by improvement fees must be related to the need for increased capacity in the system to which the fee is related that will be required to serve the demands placed on the system by future users.

(C) Capital improvement being funded wholly or in part from revenues derived from the system development charges shall be included in the master plan improvement or other applicable capital improvement plan.

(D) System development charge revenues may be expended on the direct costs of complying with the provisions of this subchapter, including the costs of developing system development charge methodologies and providing an annual accounting of system development charge funds. System development charge revenues may be expended only in accordance with state law and may not be expended on costs associated with the construction of administrative office facilities that are more than an incidental part of other capital improvements or for the operation or maintenance of capital improvements.

(Ord. 2328, passed 9-27-21)

34.08 PROJECT PLAN.

(A) The City Council shall adopt by resolution the master plan improvement or other capital improvement plan(s) that:

(1) Defines the amount of current or under construction capacity available for new development and the cost of the facilities comprising this capacity;

(2) Lists the capital improvements that may be funded in whole or in part with system development charges revenues; and

(3) Lists the estimated cost and estimated construction time frame of each improvement.

(B) In adopting a plan, the City Council may incorporate by reference all or a portion of any public facilities plan, master plan, capital improvements plan or similar plan that contains the information required by this section.

(C) The City Council may modify these plans at any time through the adoption of an appropriate resolution. If a system development charge will be increased by a proposed modification to the list to include a capacity increasing public improvement, the City Council will:

(1) At least 30 days prior to the adoption of the proposed modification, provide written notice to persons who have requested notice pursuant to § 34.06;

(2) Hold a public hearing if a written request for a hearing is received within seven days prior to the date of adoption of the proposed modification.

(Ord. 2328, passed 9-27-21)

34.09 CHARGE COLLECTION.

(A) The system development charge is payable upon issuance of:

(1) A building permit;

(2) A development permit for development not requiring the issuance of a building permit;

(3) A permit or approval to connect to or increase the usage of the system or systems provided by the city; or

(4) A right-of-way access permit.

(B) The resolution which sets the amount of the charge shall designate the permit or systems to which the charge applies.

(C) The City Manager or designee shall collect the applicable system development charge from the permittee or system user.

(D) The City Manager or designee shall not issue the permit or allow connection or increased usage of the system(s) until the charge has been paid in full or provision for deferral has been made unless an exemption is granted pursuant to § 34.11.

(E) If development is commenced or connection is made without an appropriate permit, the system development charge is immediately payable upon the earliest date that a permit or approval was required, and it will be unlawful for anyone to continue with the construction or associated use until the system development charge has been paid.

(F) All moneys collected through the system development charge shall be retained in a separate fund and segregated by type of system development charge and by reimbursement versus improvement fees.

(Ord. 2328, passed 9-27-21)

34.10 [RESERVED.]

34.11 EXEMPTIONS.

The following are exempt from system development charges:

(A) Structures and uses established and existing on or before the effective date of this subchapter, to the extent of the structure or use then existing, including any then existing connections. New connections, uses or redevelopment are subject to the SDC in effect at the time of the connection, change in use or redevelopment unless otherwise exempt.

(B) Additions to single-family dwellings that do not constitute the addition of a dwelling unit as defined by the city’s building code are exempt from all portions of the system development charge.

(C) An alteration, addition, replacement or change in use that does not increase the parcel’s or structure’s use of a capital improvement are exempt from all portions of the system development charge applicable to that capital improvement.

(Ord. 2328, passed 9-27-21)

34.12 CREDITS.

(A) A permittee is eligible for credit against the improvement fee for constructing a qualified capital improvement.

(B) This credit shall be only for the improvement fee charged for the type of improvement being constructed. Credit shall be granted only for the cost of that portion of the improvement that exceeds the facility size or capacity needed to serve the development project.

(C) In applying the adopted methodology, the city may grant a credit against the improvement charge for capital facilities provided as part of the development that reduces the development’s demand upon existing capital improvements or the need for further capital improvements or that would otherwise have to be constructed at city expense under the then existing City Council policies.

(D) When the construction of a qualified public improvement gives rise to a credit amount greater than the improvement fee that would otherwise be levied against the project receiving development approval, the excess credit may be applied against improvement fees that accrue in subsequent phases of the original development project. Credits are not otherwise transferable.

(E) For a change of use, a credit will be issued against the SDC that otherwise would be due in an amount equal to the current SDC attributable to the previous use. The credit may not exceed the SDC on the new use and is not transferable.

(F) All credit requests must be in writing and filed with the city before the issuance of the permit or approval that triggers payment of the SDC. Acceptance of the qualified improvement shall be in accordance with the usual and customary practices, procedures, and standards of the city. The amount of any credit shall be determined by the city and based upon, at the discretion of the city, either the subject improvement construction contract documents, or other appropriate information or the actual completed cost of that portion of the qualified improvement that exceeds the facility size or capacity needed to serve the development and issued after acceptance of the improvement by the city. Upon a finding by the city that the contract or cost amounts exceed prevailing market rate for a similar project, the credit shall be based upon market rates. The city shall provide the applicant with a credit on a form provided by the city. The credit shall state the actual dollar amount that may be applied against any system development charge imposed against the subject property. The applicant has the burden of demonstrating qualification for a credit. If real property is donated to the city for a qualifying capital improvement, the credit will be determined by the real market value shown on the most recent County tax records or the city may require an independent appraisal in which case the credit shall be determined by the appraised fair market value.

(G) Credits shall be apportioned against the property which was subject to the requirements to construct an improvement eligible for credit. Unless otherwise requested, apportionment against lots or parcels constituting the property shall be proportionate to the anticipated public facility service requirements generated by the respective lots or parcels. Upon written application to the city, however, the city may apportion credits from any lot or parcel to any other lot or parcel within the confines of the property originally eligible for the credit. Reapportionment shall be noted on the original credit form retained by the city.

(H) Any credits may be assigned; however, they shall apply only to that property subject to the original condition for land use approval upon which the credit is based or any partitioned or subdivided parcel or lots of property to which the credit has been apportioned. Credits shall only apply against system development charges, are limited to the amount of the improvement fee attributable to the development of the specific lot or parcel for which the credit is sought and shall not be a basis for any refund.

(I) Any credit request must be submitted before the issuance of a building permit. The applicant is responsible for presentation of any credit and no credit shall be considered after issuance of a building permit.

(J) Credits shall expire unless used by the applicant within ten years of issuance by the city.

(Ord. 2328, passed 9-27-21)

34.13 DEFERRAL OF SDC

(A) An applicant may apply for deferral of payment of an SDC until issuance of an occupancy permit or final inspection approval; provided, that:

(1) The amount of the SDC for which deferral is sought exceeds the SDC due on construction of a single-family dwelling unit;

(2) The application is received by the city prior to issuance of the building permit or other applicable approval; and

(3) The applicant is not in default of payment of any SDCs otherwise due.

(B) The deferred SDC is due and payable in full prior to issuance of the occupancy permit or final inspection approval, whichever first occurs, but no later than 12 months from issuance of the building permit or other applicable approval. The SDC due shall be the amount in effect at the time of issuance of the building permit or other applicable approval. Interest on the deferred amount shall be charged at the U.S. prime rate in effect at the time of deferral.

(C) The City Manager or designee may establish a deferred payment agreement form, which shall be recorded in the County property records and constitutes a first lien on the subject property. The City Council may, by resolution, establish an administrative fee for deferral request processing and recording.

(Ord. 2328, passed 9-27-21)

34.14 REFUNDS

(A) Refunds of an SDC paid may be made upon initiation of the City Manager or designee or written application filed with the City Manager or designee.

(B) A refund shall be allowed for only the following reasons:

(1) A determination by the city that there was error in the calculation of the SDC. An application for a refund under this paragraph must be made no later than 30 days from the date of issuance of the building permit or other applicable approval, or occupancy permit or final inspection if deferred. The burden of proving error shall be on the applicant.

(2) Withdrawal or expiration of the building permit or other applicable approval provided the development subject to the SDC has not commenced, but in no event more than two years from issuance or approval. An application for refund under this subsection must be made no later than 30 days from the date of expiration or withdrawal. Any subsequent building permit issuance or other applicable approval shall be subject to the SDC amounts then in effect.

(Ord. 2328, passed 9-27-21)

34.15 APPEALS.

(A) Any interested person may challenge an SDC expenditure by filing an appeal with the city within two years of the expenditure. The appeal shall be heard by the City Council, which may adopt rules for such challenge by resolution which procedures shall be provided to the person filing the challenge.

(B) A challenge to the system development charge methodology must be filed within 60 days following adoption or modification and may be pursued only as provided in ORS 34.010 through 34.100.

(C) Appeals of other decisions under this subchapter, including calculation of an SDC charge or credit, must be filed as provided in Chapter 136. The City Council shall hear the appeal unless delegated to the Code Hearings Officer.

(Ord. 2328, passed 9-27-21)

34.16 ANNUAL ACCOUNTING.

The city shall provide an annual accounting, to be completed by January 1 of each year, for system development charges showing the total amount of system development charges collected for each system along with a list of projects funded in whole or in part through system development charges. It shall show any costs attributed to the costs of complying with the provisions of state law governing system development charges, including the cost of the methodologies and the annual accounting.

(Ord. 2328, passed 9-27-21)

LOCAL IMPROVEMENT DISTRICT ORDINANCE

34.25 SHORT TITLE.

This subchapter shall be known as the Local Improvement District Ordinance.

(Ord. 431, passed 8-23-61; Am. Ord. 2276, passed 5-13-19)

34.26 DEFINITIONS.

For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning:

ACTUAL COST. All direct or indirect costs incurred by the city to deliver goods or services or to undertake a capital construction project. The actual cost of providing goods or services to a property or property owner includes the average cost or an allocated portion of the total amount of the actual cost of making a good or service available to the property or property owner, whether stated as a minimum, fixed or variable amount. It 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, repair or replacement and debt service, including debt service payments or payments into reserve accounts for debt service and payment of amounts necessary to meet debt service coverage requirements. (ORS 223.001)

ESTIMATED ASSESSMENT. 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 actual costs to the property. It shall be determined by excluding from estimated actual costs the estimated financing costs associated with any bonds issued to accommodate the payment of the assessment in installments and including in estimated actual costs the estimated financing costs associated with interim financing of the local improvement. (ORS 223.001)

FINAL ASSESSMENT. 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. (ORS 223.001)

FINANCING. All costs necessary or attributable to acquiring and preserving interim or permanent financing of a local improvement. Financing may include the salaries, wages and benefits payable to employees of the city to the extent reasonably allocable to the work or services performed by the employees in connection with the local improvement or any part thereof; provided, that the city establishes a record keeping system to track the actual work done or services performed by each employee on or in connection with such local improvement. (ORS 223.001)

LOCAL IMPROVEMENT. A capital construction project or part thereof that provides a special benefit to or rectifies a problem caused by specific properties, including:

(1) The widening, construction, improvement, repair or reconstruction of any right-of-way, including sidewalks, curbs, gutters and bicycle ways;

(2) The installation, reconstruction or replacement of street lights;

(3) Constructing, reconstructing or repairing any water, sanitary or storm sewer or water facility, including but not limited to mains, laterals, water detention or quality features, dams and dikes;

(4) Construction, reconstruction or repair of off-street parking facilities;

(5) Construction, reconstruction, improvement or repair of any park, playground or recreational facility;

(6) Undergrounding of utilities;

(7) The acquisition of real property or an interest in real property for any improvement;

(8) Any other improvement for which an assessment is authorized by state law. (ORS 223.001/310.140)

LOCAL IMPROVEMENT DISTRICT or LID. The area determined by City Council to be specially benefited by the local improvement within which properties may be assessed to pay the cost of the local improvement.

LOT. Lot, block or parcel of land.

NOTICE. Deposit with the U.S. Postal Service with first class postage paid or by personal delivery.

OWNER. The owner or owners of the 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 or the owner’s agent authorized in writing to act for the owner. In the case of ownership by a corporation, LLC, partnership or similar entity, the person duly authorized by the entity shall be deemed to be the owner for purposes executing any petition, waiver, remonstrance, installment payment agreement or other document.

PROJECT. All work reasonably necessary to complete the local improvement.

(Ord. 431, passed 8-23-61; Am. Ord. 1124, passed 3-13-78; Am. Ord. 2276, passed 5-13-19)

34.27 INITIATION OF LID FORMATION.

(A) Formation of a local improvement district may be initiated by resolution of the City Council or by petition.

(B) A petition for formation shall include:

(1) A general description of the proposed local improvement;

(2) A proposed boundary for the local improvement district, including the address and map and tax lot number of each property proposed to be benefited by the local improvement;

(3) The signature of each of the owners of more than 50% of the lots within the proposed boundary;

(4) The fee, if any, established by the City Council for preparation of the report provided for in subsection (D) of this section.

(C) The City Council shall consider any valid petition but may decline to initiate formation of the local improvement district or may modify the local improvement district or the nature or scope of the public improvement proposed by petition.

(D) The resolution initiating formation shall direct the City Manager to have a report prepared containing the following information and any other information requested by the City Council or deemed relevant by the City Manager:

(1) A description of the local improvement project and its boundaries based on preliminary project plans and specifications;

(2) A preliminary determination of the feasibility of making the proposed improvement, including an estimate of the actual cost of the proposed local improvement;

(3) A map of the proposed local improvement district with the address and the map and tax lot number or other sufficient description and ownership of each specially benefited property with a brief explanation of why the properties benefit;

(4) The proposed methodology for allocating the improvement project costs among and between the specially benefited properties, together with a description of other funds, if any, proposed to be used;

(5) The assessed valuation of each property and an estimate of the assessment amount for each lot or portion thereof, with a statement of the amount of outstanding assessments against any lot proposed to be assessed by the improvement.

(E) The City Manager shall have a copy of the report filed in the office of the Finance Director when completed.

(Ord. 431, passed 8-23-61; Am. Ord. 2276, passed 5-13-19)

34.28 LID FORMATION.

(A) After consideration of the City Manager report, City Council shall by resolution decide whether to declare its intention to form the local improvement district and make the local improvement as proposed or as modified by the City Council. The resolution of intent shall include:

(1) A description of the local improvement, including its scope and location;

(2) A map of the proposed local improvement district boundary, including the address, map and tax lot and ownership information for each property within the boundary;

(3) An estimate of the actual cost of the improvement;

(4) The proposed methodology for establishing special benefit and levying assessments, the estimated assessment to be levied against each property and a description of funds other than assessments, if any, that may be used to fund the local improvement;

(5) The location, date and time of a public hearing on formation of the local improvement district.

(B) Notice of public hearing on formation. At least ten days prior to the public hearing on formation, the City Manager shall mail or personally deliver notice to the owners of each property proposed to be located within the local improvement district. In addition to the date, time and location of the hearing, the notice shall include:

(1) A general description of the proposed local improvement and the boundary of the district, including the address of each property proposed to be included.

(2) The estimated cost of the proposed local improvement, the methodology for levying assessments and the estimated assessment for each property. The notice shall note that these are estimates only and that the final assessment may be greater.

(3) A statement that the City Manager report is available for review.

(4) A statement that any interested person may testify or submit written comments on the proposed local improvement district and that any property owner may formally object by submitting a written remonstrance stating the reason for the objection and signed by each owner of the property, which remonstrance must be received by the City Manager no later than 5:00 p.m. on the business day before the public hearing.

(5) A form for remonstrance as provided in § 34.30.

(Ord. 431, passed 8-23-61; Am. Ord. 2276, passed 5-13-19)

34.29 PUBLIC HEARING AND CITY COUNCIL DECISION ON FORMATION.

(A) At the public hearing, the City Council shall provide a reasonable opportunity for persons to testify and shall consider any written comments received with any remonstrances.

(B) At the conclusion of testimony, the City Council shall:

(1) Decline in its discretion to form the local improvement district and terminate formation;

(2) Receive remonstrances. If valid remonstrances are received from the owners of more than 60% of the lots that otherwise would be assessed, the City Council may terminate the district formation, suspend the formation for not less than six months or approve the formation, notwithstanding the remonstrances as provided in § 34.30;

(3) Adopt an ordinance approving the project and district formation as proposed or as modified in the City Council’s discretion. The approval shall specify whether an estimated assessment shall be levied and the amount thereof to be levied against each specially benefited property. If the City Council modification causes any property to be subject to a substantially increased proposed assessment, it shall continue the public hearing and direct that written notice of the modification be sent to the owners in the proposed district, unless the affected owners waive objection to the proposed increase at the hearing; or

(4) Continue the hearing to a time and date certain for further consideration, not to exceed 90 days.

(Ord. 431, passed 8-23-61; Am. Ord. 2276, passed 5-13-19)

34.30 REMONSTRANCES.

(A) To be valid, remonstrances shall be in writing and at a minimum include an objection to the local improvement district with a brief statement as to the reasons for the objection. It shall be signed by each of the owners of the property.

(B) Only remonstrances actually received by the City Manager by 5:00 p.m. on the business day before the public hearing shall be counted. Remonstrances shall not be counted if the property is subject to a non-remonstrance agreement.

(C) A remonstrance may be withdrawn; provided, that each owner does so orally or in writing prior to the close of the hearing.

(D) If valid remonstrances constituting more than 60% of the lots within the proposed district are timely received, the City Council shall either terminate formation or suspend formation for not less than six months. Notwithstanding the foregoing, the City Council may by ordinance override the remonstrances and approve formation if by unanimous vote the City Council determines that the proposed local improvement is immediately needed to address a threat to public health, safety or welfare.

(Ord. 431, passed 8-23-61; Am. Ord. 2276, passed 5-13-19)

34.31 CONSTRUCTION OF THE LOCAL IMPROVEMENT.

(A) The city may construct the public improvements using its own forces or by contract as provided in the city’s public contracting rules and state law. The construction plans may modify the local improvement as reasonably necessary to conform to applicable codes or in the exercise of normal and customary project construction judgment. The city may combine the local improvement with a public improvement project as it deems appropriate; provided, that the costs of the local improvement are apportioned or otherwise reasonably attributed to the local improvement district.

(B) City Council in its sole discretion may reject any or all bids, rebid the project or abandon the local improvement. The City Council may levy final assessments for the cost of preparing construction plans and bidding if it determines that the properties in the district were specially benefited.

(Ord. 431, passed 8-23-61; Am. Ord. 2276, passed 5-13-19)

34.32 ASSESSMENTS.

(A) The City Council shall conduct a public hearing to consider objections to the estimated assessment, if any, and the final assessment.

(B) Notice of the public hearing on the estimated assessment or final assessment shall be provided by mail or personal delivery to the owners of property to be assessed at least ten days in advance of the hearing. The notice shall include the name of the owner, a description of the property to be assessed, the estimated or actual cost of the local improvement to be assessed and the amount to be assessed against each property with a description of the methodology for assessment. It shall state that any objections to the proposed assessment may be submitted in writing or orally prior to the close of the public hearing, that the City Council may modify the proposed estimated or final assessments and that at the conclusion of the hearing the City Council intends to levy assessments which shall constitute a lien on the property.

(C) Final assessments shall be levied based on a report submitted to City Council by the City Manager upon completion of the local improvement project. The report shall include:

(1) The actual cost of the local improvement, less the amount, if any, paid for using funds other than assessments;

(2) The final amount recommended to be assessed for each property based on the methodology approved by the City Council in the formation resolution, adjusting for any estimated assessment payments received.

(D) If the initial assessment has been made based on an estimated assessment, and on the completion of work the actual cost is found to be greater than the estimated cost, the City Council shall make a deficit assessment for the actual cost. If an estimated assessment which was greater than the final assessment has been paid, the payor or the payor’s assigns or legal representative shall be refunded the difference. (ORS 223.395)

(E) The City Council shall review the estimated assessment or the final assessment report and make any modifications it deems appropriate. City Council shall adopt an assessment ordinance, schedule a public hearing and direct that notice of the proposed estimated or final assessment be provided to the owners within the local improvement district. The ordinance shall specify the payment dates, interest and penalties to be included in any installment payment agreement for final assessments or otherwise applicable to delinquent assessments.

(F) At the public hearing, the City Council shall consider any objections or recommendations received and may modify the estimated or final assessments. The City Council shall adopt an ordinance determining and levying the amount of assessment to be charged against each property. It shall specify the interest, penalties and other payment terms and that the assessment constitutes a charge and lien against assessed properties; for a final assessment, it shall specify the period for payment in installments of not less than ten or more than 30 years.

(Ord. 431, passed 8-23-61; Am. Ord. 2276, passed 5-13-19)

34.33 [RESERVED].

34.34 LIEN NOTICE.

Within ten days of City Council adoption of an estimated or final assessment, the City Manager shall mail or deliver personally notice identifying the local improvement for which the assessment is to be made, each lot to be assessed, and the estimated or final assessment for each lot. In addition, for a final assessment the notice shall state that the owner shall have the right to apply to the city for payment of the final assessment in installments and that failure to execute the installment payment agreement within 30 days of the date of entry in the lien docket shall cause the full amount of the assessment to be immediately due and payable. The notice of a final assessment shall include an installment payment agreement.

(Ord. 431, passed 8-23-61; Am. Ord. 2276, passed 5-13-19)

34.35 INSTALLMENT PAYMENTS.

The installment payment agreement shall be on a form approved by the city and shall provide:

(A) The amount of final assessment and a statement of the interest rate and penalties for delinquency.

(B) A description of the property by lots, blocks, or other convenient description and of the local improvement.

(C) The time to pay the final assessment in full, including any interest or penalties. There shall be no prepayment penalty.

(D) The due date for the initial payment and subsequent installments and the terms governing delinquencies, including that installment payments, including interest and penalties, not paid within one year of the due date may result in the entire remaining balance being immediately due and payable and that the city shall have all remedies to enforce the obligation as provided by law, including foreclosure.

(E) That the applicant acknowledges and agrees to pay the final assessment, including interest and penalties, together with an amount, determined by the City Council, sufficient to pay a proportionate part of the cost of administering the bond assessment program and issuing any bonds, including but not limited to legal, printing and consultant’s fees.

(F) A waiver of all irregularities or defects whatsoever, jurisdictional or otherwise, in the proceedings to cause the local improvement for which the final assessment is levied and in the apportionment of the actual cost of the local improvement.

(G) Such other terms and conditions as the City Manager deems appropriate. (ORS 223.215)

(Ord. 431, passed 8-23-61; Am. Ord. 2276, passed 5-13-19)

34.36 LIEN RECORDING AND DOCKET.

(A) Any estimated assessment shall be a lien against the property to be charged against each lot as provided by the ordinance levying the estimate assessment until the final assessment is entered. It shall be entered into the lien docket as provided below within 30 days of the ordinance levying the estimated assessment.

(B) After expiration of the time for filing an installment application, the City Manager shall enter into the city lien docket, under separate heads for each local improvement, by name or number, a description of each lot or parcel of land or other property against which the final assessment is made, or which bears or is chargeable for a portion of the actual cost of the local improvement, with the name of the owner and the amount of the unpaid assessment. The entries shall be made as of the date of initial determination and levy of the final assessment. (ORS 223.230)

(C) The docket shall stand thereafter as a lien docket as for ad valorem property taxes assessed and levied in favor of the local government against each lot or parcel of land or other property, until paid, for the following:

(1) For the amounts of the unpaid assessments therein docketed, with interest on the installments of the assessments at the rate determined by the City Council; and

(2) For any additional interest or penalties imposed by the city with respect to any installments of assessments that are not paid when due.

(D) All unpaid assessments together with accrued and unpaid interest and penalties are a lien on each lot or parcel of land or other property, respectively, in favor of the city, and the lien shall have priority over all other liens and encumbrances whatsoever.

(E) The city shall make the lien record available on hard copy or through an online electronic medium. The City Recorder shall keep all installment applications in a convenient form for examination. Applications for each local improvement shall be kept separate. The Recorder shall enter in a book kept for that purpose, under separate heads for each local improvement, the date of filing of each application, the name of the applicant, a description of the property and the amount of the final assessment as shown in the application. (ORS 223.225 and 223.230)

(Ord. 431, passed 8-23-61; Am. Ord. 2276, passed 5-13-19)

34.37 UNKNOWN OWNER.

(A) If the owner of any property is unknown, the property may be assessed to "unknown owner(s)." If the property is correctly described, no final assessment shall be invalidated by a mistake in the name of the owner of the real property assessed or by the omission of the name of the owner or the entry of a name other than that of the true owner. Where the name of the true owner, or the owner of record, of any parcel of real property is given, the final assessment shall not be held invalid on account of any error or irregularity in the description if the description would be sufficient in a deed of conveyance from the owner, or is such that, in a suit to enforce a contract to convey, employing such description in a court of equity would hold it to be good and sufficient. Any description of the property that conforms substantially to the requirements of state law shall be sufficient for all purposes. (ORS 223.387)

(B) Any mistake, error, omission or failure with respect to the mailing shall not be jurisdictional or invalidate the assessment proceedings, but there shall be no foreclosure or legal action to collect until notice has been given by personal service upon the property owner, or if personal service cannot be had, then by publication once a week for two successive weeks in a newspaper of general circulation in the city.

(C) Claimed errors in calculation of assessments shall be called to the attention of the City Manager prior to any payment on account thereof. The City Manager shall check the calculation and report his findings to the City Council. If an error has been made, the City Council shall amend the final assessment ordinance to correct the error. Upon the enactment of an amendment by the City Council, the Finance Director/Recorder shall make the necessary correction in the lien docket and shall send by registered or certified mail to the owner a corrected notice of the assessment.

(Ord. 431, passed 8-23-61; Am. Ord. 658, passed 5 25-70; Am. Ord. 1297, passed 5-12-80; Am. Ord. 1365, passed 6-8-81; Am. Ord. 2276, passed 5-13-19)

34.38 REASSESSMENTS.

Whenever any assessment, deficit or reassessment for any local improvement which has been made by the city has been, or shall be, set aside, annulled or declared or rendered void, or its enforcement restrained by any court having jurisdiction, or when the City Council shall be in doubt as to the validity of such assessment, deficit assessment or reassessment or any part thereof, then the City Council may make a reassessment in the manner provided by state law. (ORS 223.405)

(Ord. 431, passed 8-23-61; Am. Ord. 658, passed 5 25-70; Am. Ord. 1297, passed 5-12-80; Am. Ord. 1365, passed 6-8-81; Am. Ord. 2276, passed 5-13-19)

34.39 CITY FUNDS.

(A) The City Council may direct that the city pay a portion of the local improvement if it determines that on account of topographical or physical conditions, unusual or excessive use by the general public or other character of the work involved, or when the Council otherwise believes the situation warrants; provided, that the proportion to be paid by the city represents a reasonable relation between the benefits derived by the property specially assessed and the benefits derived by the city as a whole.

(B) The City Council may use any available means of financing the improvement, including city funds, federal or state grants in aid, sewer service or other types of services or charges, revenue bonds, general obligation bonds, or other legal means of finance.

(Ord. 431, passed 8-23-61; Am. Ord. 2276, passed 5-13-19)

34.40 [RESERVED].

34.41 FINANCING.

(A) The city may provide for interim or permanent financing through any method it deems appropriate as permitted by law.

(B) The issuance of notes or bonds to finance local improvements shall conform to the provisions of state law in effect at the time of issuance, except to the extent expressly modified by this subchapter. (ORS 223.235)

(Am. Ord. 2276, passed 5-13-19)

34.42 PARKING IMPROVEMENTS.

The procedure for establishing motor vehicle parking districts provided for by state law shall be the same as for other improvement districts.

(Am. Ord. 2276, passed 5-13-19)

34.43 MISCELLANEOUS.

(A) Rebonding. Rebonding of the original assessment shall be as provided by state law in effect at the time an application for rebonding is submitted with such terms as may be established by the City Council and any applicable ordinances, rules or regulations as provided by the City Council. (ORS 223.750).

(B) Reinstatement. Reinstatement of delinquent liens before the property affected has been sold for payment thereof shall be governed by state law.

(C) The provisions of state law concerning acceptance of home owner’s loan corporation bonds and municipal bonds as payments for assessment liens; assessment of public property benefited by improvements; and the inclusion of public roads in sidewalk improvement districts shall be governed by state law.

(Am. Ord. 2276, passed 5-13-19)

34.44 APPORTIONMENT ON PARTITION OR SUBDIVISION.

(A) The City Council may apportion a final assessment levied by it against a single tract, lot or parcel of real property among all the lots formed from a subsequent land division of that tract, lot or parcel if the subsequent division is in accordance with state law and is consistent with the applicable acknowledged comprehensive plans. The proportionate distribution of a final assessment may be made whenever the final assessment remains wholly or partially unpaid, and full payment or an installment payment is not due.

(B) The City Council shall apportion a final assessment under this subchapter 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 final assessment was originally levied or on its own motion. When the deed, mortgage or other instrument evidencing the applicant’s ownership or other interest in the parcel has not been recorded by the county clerk of the county in which the parcel is situated, the City Council shall not apportion the final assessment unless the applicant files a true copy of that deed, mortgage or instrument with the city.

(C) Apportionment of a final assessment shall be done 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 final 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 final assessments and the payments thereon. A copy of the order or resolution shall be filed with the Recorder, required to maintain the lien docket for the city, which shall make any necessary changes or entries in the lien docket for the city.

(D) When a final assessment is being paid in installments, if the final assessment is apportioned among smaller lots under this section, the installments remaining unpaid shall be prorated among those smaller lots so that each lot shall be charged with that percentage of the remaining installment payments equal to the percentage of the unpaid final assessment charged to the parcel upon apportionment.

(E) The apportionment shall be based on the methodology for imposing the original final assessment. Notice and hearing on reapportionment shall be provided in substantially the same manner as provided in this subchapter for levying a final assessment. The City Council may impose fees reasonably calculated to reimburse the city for its actual costs in apportioning final assessments. The provisions of this section shall apply to estimated assessments with respect to any property divided into smaller lots prior to the levy of the final assessment.

(Am. Ord. 2276, passed 5-13-19)