Chapter 3.16
LOCAL IMPROVEMENTS — SPECIAL ASSESSMENTS
Sections:
3.16.010 Accord with statutes.
3.16.020 Initiation and authorization.
3.16.030 Local improvement district.
3.16.040 City or bid contracts.
3.16.050 Cost and expense assessed.
3.16.080 Warrants to be issued.
3.16.090 Fund—Posting of rolls.
3.16.100 Installment payments.
3.16.110 Report by finance director.
3.16.150 Fund to guarantee payments.
3.16.180 Warrants at six percent interest.
3.16.210 Insufficient funds—Certificate.
3.16.220 Payment from available funds.
3.16.010 Accord with statutes.
Whenever the city 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 especially benefited, the proceedings therefor shall be in accordance with the provisions of an act of the Legislature of the state, entitled “An Act relating to local improvements in cities and towns and repealing certain Acts and parts of Acts,” approved March 17, 1911, and acts amendatory thereof (Chapters 35.43, 35.44, 35.45, 35.49, 35.50 and 35.53 RCW), and Chapter 165, Laws of 1961, and the provisions of this chapter and ordinances amendatory thereof. (Ord. 91 § 1, 1962)
3.16.020 Initiation and authorization.
A. Any such improvement as described in Section 3.16.010 may be initiated either upon petition or by resolution therefor, but such improvement may be ordered only by ordinance.
B. In case the improvement is initiated by petition, such petition shall be presented to and filed with the city clerk, or such other officer as may be designated by the city council. The city engineer shall thereupon examine such 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 improvement to be made and shall transmit the same to the city council, together with all papers and information in his possession regarding the same, together with his recommendations thereon and a description of the boundaries of the district and a statement of the proportionate amount of the cost and expense of such improvement which shall be borne by property within the proposed assessment district, and a statement of the aggregate actual valuation of the real estate, including twenty-five percent of the actual valuation of the improvements in such proposed district according to the valuation last placed upon it for purpose of general taxation, together with all other outstanding and unpaid local improvement assessments against the property included in the district, excluding penalties and interest; and in case the petition is sufficient, shall also submit a diagram showing thereon the lots, tracts or parcels of land and other property which will be especially benefited thereby and the estimated amount of the cost and expense of such improvement to be borne by each lot, tract or parcel of property.
C. The city council may initiate such improvement directly by resolution declaring its intention to order such improvement and setting forth the nature and territorial extent thereof and notifying all persons who may desire to object thereto to appear and present such objections at a meeting of the city council at the time specified in such resolution. Such resolution shall be published in at least two consecutive issues of the official newspaper of the city and the date of hearing thereon shall be at least fifteen days after the date of the first publication of the same. The city engineer shall submit to the city council, at or prior to the date fixed for such hearing, the same data and information required to be submitted in the case of a petition.
D. The city council may, by ordinance, authorize the making of any such improvement and, in case of an improvement initiated by resolution of the city council, such ordinance may be passed on or at any time after the date of the hearing specified in the resolution. (Ord. 91 § 2, 1962)
3.16.030 Local improvement district.
A. Every ordinance ordering a local improvement to be paid in whole or in part by assessments against the property specially benefited shall establish a local improvement district to be known as “Local Improvement District No. _____,” which shall embrace as nearly as practicable all the property specially benefited by the improvement.
B. Unless otherwise provided in the ordinance ordering the improvement, the improvement district shall include all the property between the termini of the improvement abutting upon, adjacent, vicinal, or proximate to the street, avenue, lane, alley, boulevard, park drive, parkway, public place or square proposed to be improved to a distance of ninety feet back from the marginal lines thereof or to the centerline of the blocks facing or abutting thereon, whichever is greater (in the case of unplatted property, the distance back shall be the same as in the platted property immediately adjacent thereto); provided, that if the local improvement is such that the special benefits resulting therefrom extend beyond the boundaries as set forth in this subsection, the council may create an enlarged district to include as nearly as practicable all the property to be specially benefited by the improvement; the petition or resolution for an enlarged district and all proceedings pursuant thereto shall conform as nearly as is practicable to the provisions relating to the local improvement districts generally except that the petition or resolution must describe it as an enlarged district and state what proportion of the amount to be charged to the property specially benefited shall be charged to the property lying between the termini of the proposed improvement and extending back from the marginal lines thereof to the middle of the block (or ninety feet back) on each side thereof, and what proportion thereof to the remainder of the enlarged district; provided further, that whenever the nature of the improvement is such that the special benefits conferred on the property are not fairly reflected by the use of the termini and zone method described in this subsection, the ordinance ordering the improvement may provide that the assessment shall be made against the property of the district in accordance with the special benefits it will derive from the improvement without regard for the zone and termini method. (Ord. 91 § 3, 1962)
3.16.040 City or bid contracts.
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 either by the city itself, or by contract upon competitive bids in the manner provided by law. The city council shall determine whether such local improvement shall be done by contract or by the city itself. (Ord. 91 § 4, 1962)
3.16.050 Cost and expense assessed.
The cost and expense of any such improvement shall be distributed and assessed against all the property included in such local improvement district, in accordance with the special benefits conferred thereon, and in the manner provided by law. (Ord. 91 § 5, 1962)
3.16.060 Payment to be made.
The city 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 or by installment notes payable out of the local improvement district fund, where such notes are to be sold exclusively to another fund of the city as an investment thereof pursuant to Chapter 165, Laws of 1961, but no bonds shall be issued in excess of the cost and expense of the improvement, nor shall they be issued prior to twenty days after the thirty days allowed for the payment of assessments without penalty or interest. Such installment notes may be issued at any time after such thirty-day period. (Ord. 91 § 6, 1962)
3.16.070 Improvement bonds.
A. Local improvement bonds may be issued to the contractor or sold by the officers authorized by the ordinance directing their issue 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.
B. The proceeds of all sales of bonds shall be applied in payment of the cost and expense of the improvement. (Ord. 91 § 7, 1962)
3.16.080 Warrants to be issued.
A. The city 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 of not to exceed eight percent per annum and shall be redeemed either in cash or by local improvement bonds or installment notes for the same improvement authorized by ordinance.
B. All warrants against any local improvement fund sold by the city or issued to a contractor and by him sold or hypothecated for a valuable consideration shall be claims and liens against the improvement 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 city by or for the contractor to secure the performance of his contract or to secure the payment of persons who have performed work thereon, furnished materials therefor, or provisions and supplies for the carrying on of the work. (Ord. 91 § 8, 1962)
3.16.090 Fund—Posting of rolls.
A. All assessments for local improvements shall be collected by the city 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 other purpose than the redemption of warrants drawn upon and bonds or installment notes issued against the fund to provide payment for the cost and expense of the improvement.
B. As soon as the assessment roll has been placed in the hands of the city finance director for collection, he shall publish a notice at the official posting places or in the official newspaper of the city for ten consecutive days or in two consecutive weekly issues, that the roll is in his hands for collection and that any assessment may be paid within thirty days from the date of the first publication of the notice without penalty, interest or costs. (Ord. 265 § 1, 1976: Ord. 91 § 9, 1962)
3.16.100 Installment payments.
In all cases where bonds or installment notes 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 thirty-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 shall be due on the due date of each installment of principal. The first installment shall become due and payable during the thirty-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 remain unpaid after the first thirty-day period provided for in this chapter, interest upon the whole unpaid sum shall be charged at the rate fixed in the ordinance approving and confirming the assessment roll, 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 thirty-day period during which such installment is due and payable shall thereupon become delinquent. All delinquent installments shall be subject to an additional charge of six percent penalty levied upon both principal and interest due on such installment or installments. (Ord. 91 § 10, 1962)
3.16.110 Report by finance director.
In case the improvement is made on the bond installment or installment note plan, the city finance director shall, at the expiration of thirty days after the first publication of the notice to pay assessment, report to the city council the amount collected by him upon the roll and shall specify in the report the amount remaining unpaid upon the roll, and the city council may then, or at a subsequent meeting, by ordinance, direct the mayor and city clerk to issue the bonds or one or more installment notes on the local improvement district established by the ordinance ordering the improvement in an amount equal to the amount remaining unpaid on the assessment. The ordinance shall specify the denomination of the bonds which, except for bond numbered “one,” shall be in multiples of one hundred dollars each, or shall specify the denomination of such installment notes. (Ord. 91 § 11, 1962)
3.16.120 Form of bonds.
A. All bonds, unless otherwise specially ordered by the council, issued in pursuance of the provisions of this chapter, may be in substantially the following form:
No. __________ $____________
UNITED STATES OF AMERICA
STATE OF WASHINGTON
LOCAL IMPROVEMENT BOND
CITY OF MUKILTEO
LOCAL IMPROVEMENT DISTRICT NO. ___
N.B. This bond is issued by virtue of the provisions of RCW 35.45.010 et seq., Section 35.45.070 of which reads as follows:
“Neither the holder nor the owner of any bond or warrant issued under the provisions of this act shall have any claim therefor against the city or town by which the same is issued, except for payment from the special assessments made for the improvement for which the bond or warrant was issued, and except as against the local improvement guaranty fund of such city or town, and the city or town shall not be liable to any holder or owner of such bond or warrant for any loss to the guaranty fund occurring in the lawful operation thereof by the city or town. The remedy of the holder or owner of such bond or warrant in case of nonpayment, shall be confined to the enforcement of the assessment and to the guaranty fund.” The city of Mukilteo, a municipal corporation of the State of Washington, hereby promises to pay to ________________ or bearer ______________ ($____________) dollars, in lawful money of the United States, with interest thereon at the rate of _________ percent per annum, payable annually out of the fund established by Ordinance No. ______ of said City and known as “Local Improvement Fund, District No. _____” and not otherwise, except from the guaranty fund, as herein provided. Both principal and interest on this bond are payable at the office of the City Finance Director of said City.
A coupon is hereto attached for each installment of interest to accrue hereon and said interest shall be paid only on presentation and surrender of such coupon to the City Finance Director.
This bond is payable on or before the _____ day of _______________, 20____, and is subject to call by the City Finance Director of said City whenever there shall be sufficient money in said Local Improvement Fund to pay the same and all unpaid bonds of the series of which this bond is one, which are prior to this bond in numerical order, over and above sufficient for the payment of interest on all unpaid bonds of said series. The call for payment of this bond, or of any bond of the series of which this is one, shall be made by the City Finance Director by publishing the same once in the official newspaper of said City not less than ten (10) nor more than twenty (20) days prior to the call date, and when such call is made for the payment of this bond it will be paid on the day the next interest coupon thereon shall become due after said call and upon said day interest upon this bond shall cease and any remaining coupons shall be void.
The City Council of said City as the agent of said Local Improvement District No. ______, established by Ordinance No. ______, has caused this bond to be issued in the name of said City as the bond of said Local Improvement District, the bond or the proceeds thereof to be applied in part payment of so much of the cost and expense of the improvement of ____________________________ under said Ordinance No. ______ as is levied and assessed against the property included in said Local Improvement District No. ______ and benefited by said improvement, and the said Local Improvement Fund has been established by ordinance for said purpose; and the holder or holders of this bond shall look only to said fund and to the Local Improvement Guaranty Fund of the City of Mukilteo for the payment of either the principal of or interest on this bond.
This bond is one of a series of ______ bonds aggregating in all the principal sum of _________________ ($___________) dollars, all of which bonds are subject to the same terms and conditions as herein expressed.
IN WITNESS WHEREOF, the City of Mukilteo has caused these presents to be signed by its Mayor and attested by its City Clerk and sealed with its corporate seal this _____ day of _______, 20___.
CITY OF MUKILTEO, WASHINGTON
BY: _______________
Mayor
ATTEST:
___________________
City Clerk
B. There shall be attached to each bond such a number of coupons as shall be required to represent the interest thereon payable either annually or semiannually, as the case may be, for the term of said bonds, which coupons shall be substantially in the following form:
On the ____ day of __________, 20____, the City of Mukilteo, State of Washington, promises to pay to the bearer at the office of the City Finance Director ________________ ($________) dollars, being (six) (twelve) months’ interest due that day on Bond No. _____ of the bonds of Local Improvement District No. _____ and not otherwise, provided that this coupon is subject to all the terms and conditions contained in the bond to which it is annexed, and if said bond shall be called for payment before maturity hereof, then this coupon shall be void.
CITY OF MUKILTEO, WASHINGTON
BY: _______________
Mayor
ATTEST:
___________________
City Clerk
C. The city finance director shall keep in his office a register of all such bonds in which he shall enter the local improvement district for which the same are issued and the date, amount and number of each bond and the terms of payment. (Ord. 91 § 12, 1962)
3.16.130 Form of notes.
A. If more than one local improvement installment note is issued for a single district, the notes shall be numbered consecutively. All installment notes issued shall bear on the face thereof:
1. The name of the payee;
2. The number of the local improvement district from whose funds the notes are payable;
3. The date of issue of each note;
4. The date on which the note, or the final installment thereon, shall become due;
5. The rate of interest, not to exceed eight percent, to be paid on the unpaid balance thereof; and
6. The manual signature of the mayor and the attestation of the city clerk.
B. The reverse side of each installment note issued pursuant to this section shall bear a tabular payment record which shall indicate, at prescribed installment dates, the receipt of any local improvement district funds for the purpose of servicing the debt evidenced by the notes. The tabular payment record shall, in addition to the above, show the unpaid principal balance due on each installment note, together with sufficient space opposite each transaction affecting the note for the manual signature of the city finance director. (Ord. 91 § 13, 1962)
3.16.140 Laws applicable.
The laws of the state and the provisions of this chapter shall be applicable to all local improvements and proceedings therein initiated by petition or resolution subsequent to the passage and legal publication of the ordinance codified in this chapter and to Local Improvement District No. 61-1 established by Ordinance No. 85; and all proceedings and the manner of the collection and enforcement of all assessments in such proceedings shall be in compliance therewith. (Ord. 91 § 15, 1962)
3.16.150 Fund to guarantee payments.
In accordance with Chapter 141, Laws of 1923, as amended by Chapter 183, Laws Extraordinary Session 1925, as amended by Chapter 209, Laws of 1927, as amended by Chapter 109, Laws of 1933, State of Washington (being Chapter 35.54 RCW) the city establishes and creates a fund for the purpose of guaranteeing, to the extent of such fund, the payment of its bonds and warrants and installment notes issued to pay for any local improvement ordered in local improvement districts, including Local Improvement District No. 61-1 created by Ordinance No. 85, and any local improvement districts created subsequent to the effective date of the ordinance codified in this chapter. This fund shall be known and designated as “Local Improvement Guaranty Fund.” (Ord. 92 § 1, 1962)
3.16.160 Taxes to be levied.
There is 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 created by this chapter; and whenever the city has paid out of the guaranty fund any sum on account of principal and interest on a local improvement bond or warrant guaranteed under this chapter, the city, as trustee for the 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 shall become a part of the fund. (Ord. 92 § 2, 1962)
3.16.170 Default.
Whenever any interest coupon, bond or warrant guaranteed under the provisions of the laws of the state in pursuance of which the ordinance codified in this chapter is passed is in default, the city clerk is authorized and directed, upon the presentation and delivery of such defaulted bond, coupon or warrant, to execute, sign and deliver 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 local improvement guaranty fund in such amount as may be necessary to pay in full any such coupon, bond or warrant with any interest that may be due thereon. Any defaulted coupon, bond or warrant received by the city clerk under the provision of this chapter shall be held for the benefit of the local improvement guaranty fund. (Ord. 92 § 3, 1962)
3.16.180 Warrants at six percent interest.
Warrants drawing interest at a rate not to exceed six percent shall be issued, as other warrants are issued by the city, against the local improvement guaranty fund to meet any liability accruing against it; and at the time of making its annual budget and tax levy the city 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; provided, that such warrants shall at no time exceed five percent of the outstanding bond obligations guaranteed by the fund. (Ord. 92 § 4, 1962)
3.16.190 Payment into fund.
The city finance director is authorized and directed to pay into the local improvement guaranty fund all interest received from bank deposits of the fund, as well as any surplus remaining in any local improvement district fund guaranteed under the state laws after the payment of all outstanding bonds or warrants payable primarily out of such local improvement district fund. (Ord. 92 § 5, 1962)
3.16.200 Claims barred.
Neither the owner nor the holder of any bond, interest coupon, or warrant issued against a local improvement fund shall have any claim therefor against the city, except for payment from the special assessments made for the improvement for which the bond or warrant was issued, and except as against the local improvement guaranty fund created by this chapter, and the city is not 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 city. 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 this section shall be plainly written, printed or engraved on each bond issued and guaranteed under this chapter, and the writing, printing or engraving shall be deemed sufficient compliance with the requirements of RCW 35.45.070. (Ord. 92 § 6, 1962)
3.16.210 Insufficient funds—Certificate.
Whenever there are insufficient funds in a local improvement district to meet any payment of installment interest due on any note, authorized pursuant to provisions of Chapter 165, Laws of 1961, a noninterest-bearing defaulted installment interest certificate shall be issued by the city finance director which shall consist of a written statement certifying the amount of such defaulted interest installment; the name of the payee of the note to whom the interest is due and the number of the local improvement district from whose funds the note and interest thereon is payable. The certificate provided for in this section shall bear the manual signature of the city finance director or his authorized agent. The defaulted installment interest certificate so issued shall be redeemed for the face amount thereof with any available funds in the local improvement guaranty fund. (Ord. 92 § 7, 1962)
3.16.220 Payment from available funds.
Whenever at the date of maturity of any installment note issued pursuant to Chapter 165, Laws of 1961, there are insufficient funds in a local improvement district, due to delinquencies in the collection of assessments, to pay the final installment of principal due thereon, the note shall be redeemed with any available funds in the local improvement guaranty fund for the amount of the final installment. (Ord. 92 § 8, 1962)
3.16.230 Redemption.
All certificates and notes issued pursuant to Chapter 165, Laws of 1961, are to become subject to the same redemption privileges as apply to any local improvement district bonds and warrants now accorded the protection of the local improvement guaranty fund as provided in Chapter 35.54 RCW, and whenever the certificates or notes issued as provided in this chapter are redeemed by the local improvement guaranty fund, they shall be held therein as investments thereof in the same manner as prescribed for other defaulted local improvement district obligations. (Ord. 92 § 9, 1962)