Chapter 3.40 LOCAL IMPROVEMENTS -- LOCAL IMPROVEMENT GUARANTY FUND

(1) Use of Words and Phrases. As used in this chapter, unless the context or subject matter clearly requires otherwise, the words or phrases defined in this section shall have the indicated meanings.

(2) “Clerk” means the city clerk.

(3) “Council” means the city council.

(4) “Guaranty fund” or “local improvements guaranty fund” means that special fund created in DMMC 3.40.340 in accordance with chapter 35.54 RCW as presently constituted or as may be subsequently amended for the purposes authorized by that chapter.

(5) “Municipality” means the city.

(6) “Treasurer” means the finance director. [Ord. 1144 § 63(15), 1995; Ord. 993 § 3, 1992: Ord. 476 § 1, 1979. Formerly 3.32.010.]

3.40.020 Local improvement assessment and financing procedures.

Whenever the council provides for making local improvements and for paying the whole or any portion of the cost and expense thereof by levying and collecting special assessments on property specially benefited, the proceedings therefor shall be in accordance with the provisions of chapters 35.43 through 35.56 RCW, as presently constituted or as may be subsequently amended, and the provisions of this chapter and ordinances amendatory hereof. The laws of the state and the provisions of this chapter shall be applicable to all local improvements and proceedings therefor, whether initiated by petition or resolution of intention, subsequent to November 19, 1979, and all actions in the levying, collection, and enforcement of assessments in such proceedings shall be in compliance therewith. The laws of the state shall take precedence and control local improvement proceedings whenever such laws are at variance with the provisions of this chapter or ordinances amendatory hereof. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(part), 1979. Formerly 3.32.020.]

3.40.030 Methods of initiation.

Any local improvement may be initiated either upon petition properly signed by the owners of property aggregating a majority of the lineal frontage upon the improvement and of the area within the proposed district, or by the resolution of the council adopted of its own initiative. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.010), 1979. Formerly 3.32.030.]

3.40.040 Petition – Method – Contents.

In the event that the improvement is initiated by petition, such petition shall set forth the nature and territorial extent of the proposed improvement, the mode of payment and what proportion of the lineal frontage upon the improvement and the area within the proposed district is owned by the petitioners as shown by the records of the office of the county auditor. If any of the property within the area of the proposed district stands in the name of a deceased person, or any person for whom a guardian has been appointed and not discharged, the signature of the executor, administrator, or guardian, as the case may be, shall be equivalent to the signature of the owner of the property on the petition. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.020), 1979. Formerly 3.32.040.]

3.40.050 Petition – Filing.

The petition must be filed with the clerk who shall give notice thereof to the council. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.030), 1979. Formerly 3.32.050.]

3.40.060 Petition – Determination of sufficiency – Preliminary estimate, roll, and report.

After making proper record of the filing of such petition, the clerk shall forward the same to the official designated by the council who shall examine the petition, determine the sufficiency thereof and ascertain if the facts therein stated are true and shall cause an estimate of the cost and expense of such proposed improvement to be made and shall certify and transmit the same to the council together with all papers and information in his possession touching the proposed improvement, a description of the boundaries of the district, a statement of what portion of the cost and expense of the improvement should be borne by the property within the proposed district, and a statement of the aggregate actual valuation of the real estate, including 25 percent of the actual valuation of the improvements in the proposed district according to the valuation last placed upon it for the purposes of general taxation, together with a statement in detail of outstanding and unpaid local improvement assessments (excluding penalties and interest) against the property included in the district. If the petition is sufficient, the designated official shall also submit a diagram showing thereon the lots, tracts, parcels of land, and other property which will be specially benefited thereby and the estimated amount of the costs and expense of such improvement to be borne by each lot, tract, or parcel of property. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.040), 1979. Formerly 3.32.060.]

3.40.070 Petition – Declaration of intent to order improvement.

Upon receiving a petition certified to be sufficient by the designated official, together with the necessary materials assembled by him, the council, if it wishes to proceed, shall adopt a resolution declaring its intention pursuant to such petition to order the improvement, setting forth the same information concerning the improvement as in the case of a proposed district initiated in the first instance by council resolution. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.050), 1979. Formerly 3.32.070.]

3.40.080 Resolution – Method – Contents.

Any local improvement to be paid for in whole or in part by the collection and levying of assessments upon the property within the proposed local improvement district may be initiated by a resolution of the council, declaring its intention to order the improvement, setting forth the nature and territorial extent of the improvement, fixing the time for hearing thereon and notifying all persons who may desire to object thereto to appear and present their objections. Upon adoption of such a resolution declaring the intention to form a local improvement district, a copy thereof shall be forwarded to the official designated by the council who shall make the same studies, estimates of cost and expense, preliminary assessment roll, reports and diagrams, as required in the case of a local improvement district initiated by petition. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.060), 1979. Formerly 3.32.080.]

3.40.090 Resolution – Notice of hearing – Publication – Mailing.

(1) Publication of Resolution. The resolution declaring the council’s intention to form a local improvement district, whether of its own initiative or pursuant to a petition, shall be published in two consecutive issues of the official newspaper of the municipality, or if there is no official newspaper, in any legal newspaper of general circulation therein, the first publication thereof to be at least 15 days before the day fixed for the hearing thereon.

(2) Mailing Notice of Hearing. Notice of hearing upon the resolution declaring the intention of the council to order a local improvement, whether of its own initiative or upon a petition therefor, shall also be given by mail at least 15 days before the day fixed for hearing thereon to the owners or reputed owners of all lots, tracts, and parcels of land or other property to be specially benefited by the proposed improvement, as such owners or reputed owners are shown on the rolls of the county treasurer, directed to the address thereon shown. Such notice shall set forth the nature of the proposed improvement, the estimated cost, and the estimated benefits to the particular lot, tract, or parcel.

(3) Affidavit. Affidavits of the publication and mailing of such notice shall be filed as permanent records of the municipality by the clerk or designated official. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.080), 1979. Formerly 3.32.090.]

3.40.100 Resolution – Hearing – Recommendation – Decision to be final.

The public hearing on the resolution of intention to order an improvement, whether of its own initiative or upon a petition therefor, shall be held by the council on the date fixed unless provision is made for the hearing thereon before a committee of the council. Such hearing may be continued from time to time and the council shall retain jurisdiction thereof until the final disposition of the subject matter. Following the hearing, the committee, if the same shall be heard before a council committee, shall report its recommendation on the resolution of the council which shall take final action thereon. The action and decision of the council as to all matters passed upon by it in relation to any petition or resolution shall be final and conclusive. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.090), 1979. Formerly 3.32.100.]

3.40.110 Resolution – Protests – Applicability.

The jurisdiction of the council to proceed with any local improvement initiated in the first instance by resolution, and not pursuant to a valid and sufficient petition therefor, shall be divested by a protest filed with the council within 30 days from the date of passage of the ordinance ordering the improvement, signed by the owners of the property within the proposed local improvement district, or utility local improvement district authorized by RCW 35.43.042, subject to 60 percent or more of the total cost of the improvement including federally owned or other nonassessable property as shown and determined by the preliminary estimates and assessment roll of the proposed improvement district; provided, that such restraint by protest shall not apply to any local improvement for sanitary sewers or water mains and fire hydrants where the health officer of the municipality files with the council a report showing the necessity for such improvement accompanied by a report of the chief of the fire department in the event such improvement includes fire hydrants, and the council finds and recites in the ordinance or resolution authorizing the improvement that such improvement is necessary for the protection of the public health and safety and such ordinance or resolution is passed by unanimous vote of all members present. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.100), 1979. Formerly 3.32.110.]

3.40.120 Estimate of costs.

In making the estimate of cost and expense, the designated official shall include the following:

(1) The cost of all of the construction or improvement authorized for the district including, but not limited to that portion of the improvement within the street intersections;

(2) The estimated cost and expense of all engineering and surveying necessary for the improvement done by or under direction of the designated official;

(3) The estimated cost and expense of ascertaining the ownership of all lots and parcels of land included in the assessment district;

(4) The estimated cost and expense of advertising, mailing, and publishing of necessary notices;

(5) The estimated cost and expense of accounting, clerical labor, and all books or blanks extended or used by the clerk or finance director in connection with the improvement;

(6) All costs of the acquisition of right-of-way property, easements, or other facilities or rights, whether by eminent domain, purchase, gift, or in any other manner; provided, that any of the costs enumerated in this section may be excluded from the cost and expense to be assessed against the property in such local improvement district if the council so designates by ordinance at any time and may be paid from any other moneys available therefor;

(7) The cost for legal, financial, and appraisal services and any other expenses incurred by the municipality for the district or in the formation thereof, or by the city in connection with such construction or improvement and in the financing thereof, including the issuance of any bonds. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.070), 1979. Formerly 3.32.120.]

3.40.130 Creation of local improvement district – Designation.

(1) Every ordinance ordering a local improvement to be paid in whole or in part by assessments against the property specially benefited shall describe the improvement and establish a local improvement district to be known as “Local Improvement District No. ___,” or a utility local improvement district to be known as “Utility Local Improvement District No. ___,” which shall embrace as nearly as is practicable all of the property specially benefited by the improvement. The council may by ordinance convert an existing local improvement district into a utility local improvement district at any time prior to confirming the final assessment roll of such local district as provided in RCW 35.43.043.

(2) If the local improvement district contains “farm and agriculture land” as defined in Section 3, Chapter 84², Laws of the state of Washington 1979, a notice of formation of such district shall be filed with the county assessor and county legislative body. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.110), 1979. Formerly 3.32.130.]

3.40.140 Improvements by contract.

All local improvements, funds for the making of which are derived in whole or in part from assessments upon property specially benefited, shall be made by contract on competitive bids whenever the estimated cost of such improvement including the cost of materials, supplies, labor, and equipment will exceed the sum of $5,000. The municipality may reject any and all bids. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.120), 1979. Formerly 3.32.140.]

3.40.150 Cost assessed against property benefited.

The cost and expense of any such improvements shall be distributed and assessed against all the property included in such local improvement district, or utility local improvement district, in accordance with the special benefits conferred thereon, and in the manner provided by law. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.130), 1979. Formerly 3.32.150.]

3.40.160 Assessment roll – Filing – Notice of hearing.

The diagram or roll submitted by the designated official to the council, or committee thereof, when the total cost of the improvement has been established, shall be in the nature of a preliminary determination upon the method and relative estimated amounts of assessments to be levied upon the property specially benefited by the improvement and shall not be binding or conclusive. The municipality may use any method or combination of methods to compute assessments which may be deemed to fairly reflect the special benefits to the properties being assessed as authorized by RCW 35.44.047. When prepared, such roll shall be filed with the clerk who shall notify the council of such filing. The council shall thereupon fix a date for a hearing thereon before the council or committee and direct the clerk to give notice of hearing and of the time and place thereof. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.140), 1979. Formerly 3.32.160.]

3.40.170 Assessment roll – Notice of hearing – Contents – Mailing and publication.

(1) Contents. The notice of hearing upon the assessment roll shall specify the time and place of hearing and shall notify all persons who may desire to object thereto:

(a) To make their objections in writing and to file them with the clerk at or prior to the date fixed for the hearing;

(b) That at the time and place fixed, and at times to which the hearing may be adjourned, the council will sit as a board of equalization for the purpose of considering the roll; and

(c) That at the hearing the council will consider the objections made and will correct, revise, raise, lower, change, or modify the roll, or any part thereof, or set aside the roll and order the assessment to be made de novo, and at the conclusion thereof confirm the roll by ordinance.

(2) Mailing and Publication. At least 15 days before the date fixed for hearing, notice thereof shall be mailed to the owner or reputed owner of the property whose name appears on the assessment roll, at the address shown on the tax rolls of the county treasurer for each item of property described on the list. In addition thereto the notice shall be published at least five times in a daily newspaper, or at least two times in a weekly newspaper, the last publication to be at least 15 days before the date fixed for hearing. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.150), 1979. Formerly 3.32.170.]

3.40.180 Assessment roll – Hearing.

At the time fixed for hearing objections to the confirmation of the roll and at the times to which such hearing may be continued, the council may correct, revise, raise, lower, change, or modify the roll or any part thereof, or set aside the roll and order the assessment to be made de novo and at the conclusion of such hearing confirm the roll by ordinance. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.160), 1979. Formerly 3.32.180.]

3.40.190 Assessment roll – Objections.

All objections to the confirmation of the assessment roll shall be in writing identifying the property, signed by the owners, and clearly state the grounds of the objections. Objections not made within the time and in the manner prescribed in this chapter shall be conclusively presumed to have been waived. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.170), 1979. Formerly 3.32.190.]

3.40.200 Assessment roll – Amendment.

(1) If an assessment roll is amended so as to raise any assessment appearing thereon, or to include omitted property, a new time and place for hearing shall be fixed and notice thereof given as in the case of an original hearing; provided, that as to any property originally entered upon the assessment roll upon which the assessment has not been raised, no objection to confirmation of the assessment roll shall be considered by the council or by any court on appeal unless the objections were made in writing at or prior to the date fixed for the original hearing upon the assessment roll.

(2) If the final assessment roll contains therein any “farm and agriculture land” as defined in Section 3, Chapter 84³, Laws of the state of Washington 1979, notice thereof shall be filed with the county assessor, county legislative body, and the finance director. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.180), 1979. Formerly 3.32.200.]

3.40.210 Funds.

(1) All assessments for local improvements in local improvement districts shall be collected by the finance director and shall be kept in a separate fund to be known as “Local Improvement Fund, District No. __,” and shall be used for no purpose other than the redemption of warrants drawn upon and bonds issued against the fund to provide payment for the cost and expense of the improvement.

(2) All assessments for local improvements in a utility improvement district shall be collected by the finance director, shall be paid into the appropriate revenue bond fund and shall be used for no other purpose than the redemption of revenue bonds issued to provide funds for the cost and expense of the improvement. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.190), 1979. Formerly 3.32.210.]

3.40.220 Notice of payment date.

As soon as the assessment roll has been placed in the hands of the finance director for collection, he shall publish a notice in the official newspaper of the municipality once a week for two consecutive weeks, that the roll is in his hands for collection and that any assessment may be paid within 30 days from the date of the first publication of the notice without penalty, interest, or costs. Within 15 days after the first newspaper publication, the finance director also shall notify each owner or reputed owner whose name appears on the assessment roll, at the address shown on the tax rolls of the county treasurer for each item of property described on the list, of the nature of the assessment, of the amount of his real property subject to such assessment, of the total amount of assessment due, and of the time during which such assessment may be paid without penalty, interest, or costs. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.200), 1979. Formerly 3.32.220.]

3.40.230 Assessment payments – Penalty.

In all cases where bonds are issued to pay the cost and expense of a local improvement, the ordinance levying the assessments shall provide that the sum charged against any lot, tract, and parcel of land or other property, or any portion thereof, may be paid during the 30-day period allowed for the payment of assessments without penalty or interest, and that thereafter the sum remaining unpaid may be paid in equal annual installments. The number of installments shall be less by two than the number of years which the bonds issued to pay for the improvement are to run. Interest on the whole amount unpaid at the rate fixed by the ordinance levying the assessment shall be due on the due date of each installment of principal. The first installment shall become due and payable during the 30-day period succeeding a date one year after the date of first publication of the finance director’s notice, and annually thereafter each succeeding installment shall become due and payable in like manner. If the whole or any portion of any assessment remains unpaid after the first 30-day period provided for in this section, interest upon the whole unpaid sum shall be charged at the rate fixed in the ordinance levying the assessment, and each year thereafter one of the installments, together with interest due upon the whole of the unpaid balance, shall be collected. Any installment not paid prior to the expiration of the 30-day period during which such installment is due and payable shall thereupon become delinquent. All delinquent installments, in addition to the interest payable as provided in the ordinance levying the assessment, shall be subject to a penalty charge of eight percent levied upon both principal and interest due on such installment or installments. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.210), 1979. Formerly 3.32.230.]

3.40.240 Acceleration of payments.

In case any installment is not paid when due, the entire assessment shall become due and payable and the collection thereof enforced by foreclosure; provided, that the payment of all delinquent installments together with interest, penalty, and costs at any time before entry of judgment in foreclosure shall extend the time of payment on the remainder of the assessments as if there had been no delinquency or foreclosure. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.220), 1979. Formerly 3.32.240.]

3.40.250 Foreclosure of assessment lien.

Proceedings for foreclosure of local improvement district assessment liens for default in payment shall be conducted as authorized and provided by chapter 35.50 RCW. The date before which such foreclosure proceedings shall be commenced in any year shall be June 1st. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.230), 1979. Formerly 3.32.250.]

3.40.260 Finance director’s report.

If the cost of the improvement is to be paid by the issuance of local improvement district bonds or installment notes as authorized by chapter 35.45 RCW, the finance director shall, at the expiration of 30 days after the first publication of the notice to pay the assessment, report to the council the amount collected by him upon the said roll and shall specify in that report the amount remaining unpaid upon the roll, and the council may then, or at a subsequent meeting, by ordinance, direct the mayor and clerk to issue the bonds or installment notes on the local improvement district established by the ordinance ordering the improvement in an amount equal to the amount remaining unpaid on said assessment. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.240), 1979. Formerly 3.32.260.]

3.40.270 Bonds – Form.

All bonds, whether local improvement district bonds or revenue bonds, issued in pursuance of the provisions of this chapter, unless otherwise specially ordered by the council, shall be in substantially the form required by the laws of the state. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.250), 1979. Formerly 3.32.270.]

3.40.280 Bonds – Maximum amount – Time of issuance.

The council may provide by ordinance for the payment of the whole or any portion of the cost and expense of any local improvement by bonds of the improvement district, but no bonds shall be issued in excess of the cost and expense of the improvement, nor shall they be issued prior to 20 days after the 30 days allowed for the payment of assessments without penalty or interest. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.260), 1979. Formerly 3.32.280.]

3.40.290 Bonds – Issuance – Due date and interest.

Local improvement bonds shall be issued pursuant to ordinance and shall be made payable on or before a date not to exceed 30 years from and after the date of issue, and bear interest at such rate or rates as authorized by the council. The council may, in addition to issuing bonds callable under the provisions of RCW 35.45.050 whenever sufficient moneys are available, issue bonds with a fixed maturity schedule or with a fixed maximum annual retirement schedule. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.270), 1979. Formerly 3.32.290.]

3.40.300 Bonds – Issuance – Proceeds.

Local improvement bonds may be issued to the contractor or sold by the officers authorized by the ordinance directing their issuance to do so, in the manner prescribed therein, and at not less than par and accrued interest. Any portion of the bonds of any issue remaining unsold may be issued to the contractor constructing the improvement in payment thereof. The proceeds of all sales of bonds shall be applied in payment of the cost and expense of the improvement. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.280), 1979. Formerly 3.32.300.]

3.40.310 Warrants.

The council may provide by ordinance for the issuance of warrants in payment of the cost and expense of any local improvement, payable out of the local improvement district fund. The warrants shall bear interest at the rate or rates as authorized by ordinance and shall be redeemed either in cash or by local improvement bonds. All warrants against any local improvement fund sold by the municipality or issued to a contractor and by him sold or hypothecated for a valuable consideration shall be claims or liens upon the fund against which they are drawn prior and superior to any right, lien, or claim of any surety upon the bond or bonds given to the municipality by or for the contractor to secure the performance of his contract or to secure the payment of persons who have performed work therein, furnished materials therefor, or provisions and supplies for the carrying on of the work. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.290), 1979. Formerly 3.32.310.]

3.40.320 Collection and segregation of assessments.

(1) Whenever any land against which there has been levied any special assessment by the municipality has been sold in part or subdivided, the council shall have the power to order a segregation of the assessment.

(2) Any person desiring to have such a special assessment against a tract of land segregated to apply to smaller parts thereof shall apply in writing to the municipality. If the council determines that a segregation should be made, it shall by resolution order the finance director to make segregation on the original assessment roll as directed in the resolution. The segregation shall be made as nearly as possible on the same basis as the original assessment was levied, and the total of the segregated parts of the assessment shall equal the assessment before segregation. The resolution shall describe the original tract, the amount and date of the original assessment, and shall define the boundaries of the divided parts and the amount of the assessment chargeable to each part. A certified copy of the resolution shall be delivered to the finance director who shall proceed to make the segregation ordered upon being tendered payment of the fees provided in DMMC 3.40.330. No segregation need be made if the council finds that by such segregation the security of the lien for such assessment will be so jeopardized as to reduce the security for any outstanding local improvement district obligations payable from such assessment. In such instance the finance director shall determine that question of fact. No segregation shall be made of any assessment which has been delinquent for a period of two years or more. No segregation of any assessment on unplatted lands or large platted tracts shall be made until a plat thereof has been furnished to the designated official by the applicant for segregation showing that the proposed segregation of property will conform to the system of streets as platted in adjacent territory. In all such instances the designated official shall determine such question of fact. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.300), 1979. Formerly 3.32.320.]

3.40.330 Segregation fees.

A fee of $10.00 for each tract of land for which a segregation is to be made, plus the reasonable engineering and clerical costs incident to making the segregation shall be charged to the applicant, such fee to be paid to the finance director. [Ord. 1144 § 63(15), 1995; Ord. 476 § 2(2.310), 1979. Formerly 3.32.330.]

3.40.340 Local improvement guaranty fund.

In accordance with chapter 35.54 RCW, there is created in the treasury of the municipality a fund for the purpose of guaranteeing, to the extent of such fund, the payment of bonds and warrants issued to pay for any local improvement ordered in local improvement districts in the municipality or wholly or partly outside its corporate boundaries created subsequent to November 19, 1979. This fund shall be designated the “local improvement guaranty fund,” and is sometimes referred to as the “guaranty fund.” [Ord. 1144 § 63(15), 1995; Ord. 476 § 3(part), 1979. Formerly 3.32.340.]

3.40.350 Deposits of taxes, interest, and other moneys to guaranty fund.

(1) There shall be levied from time to time, as other taxes are levied, such sums as may be necessary to meet the financial requirements of the local improvement guaranty fund. Whenever the municipality has paid out of the guaranty fund any sum on account of principal and interest on a local improvement bond or warrant hereunder guaranteed, the municipality, as trustee for such fund, shall be subrogated to all of the rights of the holder of the bond, interest coupon, or warrant so paid, and the proceeds thereof, or of the underlying assessments, shall become a part of such fund.

(2) The finance director is authorized and directed to pay into the local improvement guaranty fund all interest received from bank deposits of that fund, as well as any surplus remaining in any local improvement district fund guaranteed under the laws of the state after the payment of all outstanding bonds or warrants payable primarily out of such local improvement district fund. [Ord. 1144 § 63(15), 1995; Ord. 476 § 3(3.010), 1979. Formerly 3.32.350.]

3.40.360 Use of guaranty fund.

Whenever any interest coupon, bond, or warrant guaranteed under the provisions of the laws of the state in pursuance of which Ordinance No. 476 is passed shall be in default, the finance director shall be and is authorized and directed, upon the presentation and delivery of such defaulted coupon, bond, or warrant, to purchase the same by executing, duly issuing, and delivering to the person or persons presenting the same, in the order of their presentation, and the finance director shall honor and pay, a warrant on the guaranty fund in such amount as may be necessary to pay in full any such coupon, bond, or warrant with any interest to be held for the benefit of the local improvement guaranty fund. [Ord. 1144 § 63(15), 1995; Ord. 476 § 3(3.020), 1979. Formerly 3.32.360.]

3.40.370 Warrants against guaranty fund.

Warrants drawing interest at a rate not to exceed six percent per year shall be issued, as other warrants are issued by the municipality, against the local improvement guaranty fund to meet any liability accruing against it. At the time of making its annual budget and tax levy, the municipality shall provide for the levying of a sum sufficient, with the other resources of the fund, to pay warrants so issued during the preceding fiscal year. Such warrants shall at no time exceed five percent of the outstanding obligations guaranteed by the guaranty fund. [Ord. 1144 § 63(15), 1995; Ord. 476 § 3(3.030), 1979. Formerly 3.32.370.]

3.40.380 Limitation of claims against the municipality.

Neither the owner nor the holder of any bond, interest coupon, or warrant issued against a local improvement fund after November 19, 1979, shall have any claim therefor against the municipality except for payment from the special assessments made for the improvement for which such bond or warrant was issued, and except as against the local improvement guaranty fund created in this chapter. The municipality shall not be liable to any holder or owner of such bond, interest coupon, or warrant for any loss to the guaranty fund occurring in the lawful operation thereof by the municipality. The remedy of the holder or owner of a bond or warrant in case of nonpayment shall be confined to the enforcement of the assessment and to the guaranty fund. A copy of RCW 35.45.070, the provisions of which are incorporated by reference in this chapter, shall be plainly written, printed or engraved on each bond issued and guaranteed under this chapter. [Ord. 1144 § 63(15), 1995; Ord. 476 § 3(3.040), 1979. Formerly 3.32.380.]

For statutory provisions on local improvement guaranty funds, see chapter 35.54 RCW.

Codified as RCW 84.34.320.