Chapter 14.10
COLLECTION OF LID ASSESSMENT
Sections:
14.10.010 Deferral – Generally.
14.10.020 Responsibility for payment.
14.10.030 Deferral – Terms and conditions.
14.10.040 Deferral – Application.
14.10.050 Deferral period – Interest rate.
14.10.060 Deferral – Terminal interests.
14.10.070 Application of payments.
14.10.080 Administration by city officials.
14.10.010 Deferral – Generally.
The collection of an assessment upon property assessed by a local improvement district, or any installment thereof, may be deferred as provided in Chapter 137, Laws of 1972, First Extraordinary Session, as now existing or hereafter amended, upon the application of a person responsible for the payment of an assessment, who is economically disadvantaged, whenever authorized in the ordinance creating the district. Unless otherwise provided in such ordinance, or in the ordinance confirming an assessment roll for such district, the terms and conditions of this chapter shall establish the terms and conditions for the deferral of collection of such assessments, the persons eligible therefor, the rate of interest, the duties of the respective city officials, and the obligations of the local improvement guaranty fund with respect thereto. (Ord. 1939 § 1, 1979).
14.10.020 Responsibility for payment.
(1) “Person responsible for payment of an assessment” means the owner of property to be assessed (including life tenants) and other persons, who under the terms of a recorded contract of purchase, recorded mortgage, recorded deed of trust transaction or recorded lease is responsible under penalty of forfeiture, foreclosure or default as between vendor/vendee, mortgagor/mortgagee, grantor and trustor/trustee and grantee, and beneficiary and lender, or lessor and lessee for the payment of the local improvement district assessment.
(2) A person responsible for payment of an assessment may qualify as economically disadvantaged when:
(a) His or her current income does not exceed the income eligibility criteria scaled by family size prepared annually by the city manager from data supplied by the United States of America Department of Labor to indicate an income necessary for such a person and family to live frugally but adequately within the city;
(b) His or her net personal assets (exclusive of the home, reasonable furniture, fixtures, and appliances and equipment necessary for maintaining life, health, or movement of infirm or handicapped persons) does not exceed $10,000.
(3) Joint or community owners may qualify when their aggregate income does not exceed the income eligibility criteria for a family with the same number of persons and the net personal assets of each owner individually, as defined above, do not exceed $10,000. (Ord. 1939 § 2, 1979).
14.10.030 Deferral – Terms and conditions.
Whenever an ordinance creating a local improvement district shall hereafter authorize deferral of collection of local improvement assessment upon the properties benefited thereby pursuant to Chapter 137, Laws of 1972, First Extraordinary Session, the following terms and conditions contained in the statute shall apply:
(1) The amount of the assessment or an installment thereof, the collection of which has been deferred, shall be paid out of the local improvement guaranty fund;
(2) The local improvement guaranty fund shall have a lien on the benefited property in an amount equal to the amounts paid by such fund, together with interest as provided by the ordinance creating the district;
(3) The collection of any particular installment shall not be deferred longer than two installment periods; provided the foregoing shall not preclude the deferral of collection of other installments of such assessment;
(4) Local improvement assessment obligations, the payment of which has been deferred, shall become due and payable upon the earliest of the following dates:
(a) Upon the date and pursuant to the conditions established by the agreement for deferral of collection,
(b) Upon the sale of property which has a deferred assessment lien upon it, from the purchase price, or
(c) Upon the death of the person to whom the deferral was granted from the value of his estate; except a surviving spouse shall be allowed to continue the deferral of collection, which shall be payable by the spouse as provided by the terms and conditions of the deferral in accordance with this chapter;
(5) The time during which collection is deferred shall not be a part of the time limited for commencement of an action to collect the amount deferred or to enforce the local improvement assessment lien;
(6) The collection of an assessment shall in no event be deferred beyond the time of the dissolution of the local improvement district;
(7) The party granted the deferment of collection of an assessment, or installment thereof, shall provide assurance of property security acceptable in form and substance to the finance director for the payment of such assessment, or installment thereof. (Ord. 1939 § 3, 1979).
14.10.040 Deferral – Application.
(1) Applications for deferral of collection of an assessment that involve any of the following must be made in writing at or before the hearing of the city council for confirmation of the assessment roll:
(a) Deferral of collection or an installment payment plan for payment of an assessment levied for total immediate payment;
(b) Deferral of collection of the first installment of an assessment payable over multiple installments; and
(c) Deferral of collection of assessments by a plan providing phased payments during the duration of the district, with a series of multiple deferrals of successive installments.
(2) An application for deferral of collection of one or more particular installments subsequent to confirmation of the assessment roll may be made on or before such installment becomes delinquent, should death of a spouse or head of household, disabling injury, or other serious adversity render a person responsible for payment of an assessment economically disadvantaged. (Ord. 1939 § 4, 1979).
14.10.050 Deferral period – Interest rate.
The assessment, or the installments thereof, upon which collection has been deferred shall bear interest during the period of deferral at the same rate as borne by the note, warrant or bonds issued by the city to pay the cost and expense of the improvement. (Ord. 1939 § 5, 1979).
14.10.060 Deferral – Terminal interests.
The period of deferral of collection of an assessment or an installment thereof shall not extend beyond a fixed date of termination of occupancy of the person responsible for payment of an assessment under a leasehold or fee or definite duration, unless the owner of the reversion or the remainder assents to such deferral. (Ord. 1939 § 6, 1979).
14.10.070 Application of payments.
Moneys received for payment of assessment installments shall be applied toward the earliest unpaid installment unless the party making the payment shall direct otherwise. (Ord. 1939 § 7, 1979).
14.10.080 Administration by city officials.
(1) The director of finance shall administer the deferral of collection of assessments, except as such duties are assigned by this chapter or by law to other city officials. The director of finance shall have the power and authority to:
(a) Give notice to property owners of the availability of ordinance procedures for deferral of collection of assessments;
(b) Accept and process applications for deferral of collection of assessments, and amendments thereof as appropriate;
(c) Conclude with the persons responsible for the payment of an assessment and agreement setting the terms and conditions consistent with this chapter and state law, including, on request and at his discretion, without charge, provision for billing and payment of installments on a monthly basis;
(d) Secure execution and filing of necessary instruments, and note satisfaction thereof;
(e) Terminate the deferral of collection of assessments upon occurrence of conditions that render the assessment or installments thereof due and payable;
(f) Determine the amounts to be paid from the local improvement guaranty fund to the fund; of such local improvement district upon the making of such deferral;
(g) Take such other actions as are necessary and appropriate to administer this chapter in accordance with RCW 35.54.100.
(2) The agreement with the person responsible for an assessment setting forth the terms and conditions of deferral of collection of the assessment shall be transmitted to the director of finance. All records pertaining to the application and information received in processing an application shall be kept confidential.
(3) The city manager shall annually determine the income eligibility criteria, report his determination to the city council, and file a copy thereof with both the director of finance and the city engineer.
(4) The director of finance shall draw such warrants upon the local improvement guaranty fund as necessary and appropriate to make payments to the local improvement district fund for assessments, the collection of which has been deferred, and shall report annually to the city council and the city manager about the amount of payments made from the local improvement guaranty fund for assessments or installments deferred pursuant to the ordinance codified in this chapter and RCW 35.54.100, as now existing or hereafter amended, the current balance in such fund and outstanding obligations guaranteed by such fund. (Ord. 2762 § 1, 2000; amended during 8/94 supplement; Ord. 2552 § 1, 1994; Ord. 1939 § 8, 1979).
14.10.090 Annual tax levy.
In order to maintain sufficient funds in the local improvement guaranty fund, established by Chapter 35.54 RCW, and to effectuate the purposes of this chapter, there shall be levied each year by the city council, in its annual tax levy, a tax upon all of the property in the city subject to taxation sufficient to meet the financial requirements thereof; provided, that the sums so levied in any year shall not be more than sufficient to pay the outstanding warrants on the fund and to establish therein a balance, which combined levy in any one year shall not exceed five percent of the outstanding obligations thereby guaranteed. The tax levies hereby authorized and directed shall be additional to, and, if need be, in excess of, any and all statutory limitations applicable to tax levies of the city. There shall be paid into the fund the interest received from bank deposits of the fund, as well as any surplus remaining in local improvement fund guaranteed hereunder, lawfully applicable thereto, and payments of principal and interest applicable for assessments or installments thereof, the collection of which has been deferred pursuant to Chapter 137, Laws of 1972, First Extraordinary Session, as now existing or hereafter amended. (Ord. 1939 § 9, 1979).