Chapter 3.12
LOCAL IMPROVEMENT DISTRICT ASSESSMENTS – GUARANTY FUND
Sections:
3.12.010 Administration of LID and ULID proceedings.
3.12.020 LID and ULID petitions to be filed with city clerk.
3.12.030 Officer designated to make preliminary estimates.
3.12.035 Procedures for LID and ULID assessment rolls.
3.12.040 Penalty for delinquent assessments and installments.
3.12.050 Commencement of foreclosure proceedings.
3.12.060 Acceleration of installments.
3.12.070 Maintenance and operation of the guaranty fund – General.
3.12.080 Minimum balance prescribed for the guaranty fund.
3.12.090 Use of guaranty fund to pay local improvement district obligations.
3.12.100 Use of guaranty fund to pay arbitrage rebate.
3.12.120 Extension of due date(s) for installments.
3.12.010 Administration of LID and ULID proceedings.
The city shall administer and prosecute all proceedings related to its local improvement districts and utility local improvement districts in substantial compliance with the laws of the state of Washington, including Chapters 35.43 through 35.54 RCW, as the same may be amended from time to time. No city action taken in substantial compliance with then-applicable state statutes ever shall be invalidated for failure to comply with any provision of this chapter. (Ord. 1424 § 2, 1999).
3.12.020 LID and ULID petitions to be filed with city clerk.
Any petitions required by Chapter 35.43 RCW (or any successor statutes) to be filed with the city to initiate the formation of a local improvement district or utility local improvement district shall be filed with the city clerk (or such city officer who may hereafter assume the duties of the city clerk). (Ord. 1424 § 3, 1999).
3.12.030 Officer designated to make preliminary estimates.
The city administrator is designated as the city’s officer responsible for taking, or causing to be taken, such actions as are required to be taken by RCW 35.43.130, as such statute may be amended from time to time. (Ord. 1424 § 4, 1999).
3.12.035 Procedures for LID and ULID assessment rolls.
A. Assessment Roll – Filing – Hearing.
1. The assessment roll for local improvements shall be prepared as provided by law, and filed with the city clerk. Thereafter, the city council shall fix a date and time for a hearing on the assessment roll. The hearing may be before the city council, or the council may direct that the hearing be held before a committee of the council, the city hearing examiner, or another officer designated by the city council. The city council, committee, hearing examiner or other officer designated by council shall hold a hearing on the assessment roll and shall consider all objections filed.
2. Following a hearing held by a committee, hearing examiner or other officer, the committee, hearing examiner or officer shall make recommendations to the city council. The city council shall thereafter either adopt or reject the recommendations. If a hearing is held before a committee, hearing examiner or other officer, it shall not be necessary to hold a hearing on the assessment roll before the city council. An owner of property, having filed a protest before or at the hearing, may appeal his or her assessment to the city council from a recommendation or decision made by a committee, hearing examiner or officer.
3. The same procedure may, if so directed by the city council, be followed with respect to any assessment upon the roll which is raised or changed to include omitted property.
4. The city council shall direct the city clerk to give notice of any such hearings in the manner required by law, including but not limited to RCW 35.44.080 and 35.44.090.
B. Hearing on Assessment Roll.
1. The city council, the council committee, the hearing examiner, or the other officer designated by the council shall commence the hearing on the date and at the time and place fixed by the city council, but may in the exercise of discretion recess the hearing to dates and times certain in order to allow the parties to obtain essential additional information; provided, however, that an effort shall be made at all times to avoid delays which unnecessarily allow interest to accumulate upon obligations for which the local improvement district is responsible.
2. If the hearing is before a committee, hearing examiner or other officer, the committee, hearing examiner or officer shall reduce its findings, recommendations and decisions to writing and shall file them with the city clerk within 20 days following the conclusion of the hearing. Notice of the filing, together with copies of the findings, recommendations and decisions, shall be mailed by the city clerk (or the clerk’s designee) within three business days of the filing to all persons who filed timely written objections to confirmation of the assessment roll as prepared. A statement of the requirement to file any appeal to the city council shall be included in the mailing, and any persons desiring to file an appeal to the city council must follow the procedure stated in this section.
C. Council Appeals – Confirmation of Assessment Roll.
1. Any finding, recommendation or decision of a committee, hearing examiner, or officer designated by the city council to conduct a hearing pursuant to RCW 35.44.070 and 35.44.080 shall be subject to appeal to the city council.
2. An appeal under this section may be filed only by a party who timely perfected a protest at the initial hearing. The notice of appeal shall be filed with the city clerk no later than the fourteenth day after the day upon which the report and recommendation of the committee, hearing examiner or other officer are filed with the city clerk.
3. The notice of appeal shall state clearly on the cover or cover page the number of the local improvement district and the appellant’s name and parcel number. The notice of appeal shall include a concise statement of the basis for the appeal and, if that appellant deems the references in the findings, recommendations and decisions inadequate, a reference to the places in the prepared record of the hearing where the pertinent material may be found. The notice of appeal shall also designate by name or title and by sub-number the items or exhibits in the record to which reference will be made in argument or briefing before the city council.
4. Upon the filing of a notice of appeal, the city clerk shall promptly notify the city attorney and furnish a copy of the notice to the city council and the concerned city departments. Within 15 days following the filing of a notice of appeal the city council shall set a time and place for a hearing on the appeal before the city council and shall promptly mail or cause to be mailed notice of the date, time and place to the appellant; provided, that the date shall be as soon as practicable in order to avoid accumulation of additional interest on the obligations of the local improvement district. The city council shall direct whether the appeals are to be considered with or without oral argument.
5. Review by the city council on appeal shall be limited to and shall be based solely upon the record from the hearing below; provided, however, that the city council may permit oral or additional written arguments or comments when confined to the content of the record of the hearing below. The recommendation appealed from shall be accorded substantial weight and the burden of establishing the contrary shall be upon the appealing party. In respect to the matter appealed, the city council may adopt or reject, in whole or in part, the findings, recommendations and decisions of the committee, hearing examiner or officer or make such other disposition of the matter as is authorized by RCW 35.44.100 and this chapter. The city council shall reduce its determination to writing, file the original in the record of the local improvement district, and transmit a copy of the same to the appellant.
6. Upon receipt of the report, findings, recommendations and decisions of a committee, hearing examiner or officer, the city council shall review the same. If an appeal has been filed from the findings, recommendations and decisions of a committee, hearing examiner or officer it shall be heard and determined and the results thereof incorporated into the assessment roll before it is confirmed.
7. As soon as all timely appeals from the findings, recommendations and decisions of the committee, hearing examiner or officer have been decided and the results incorporated into the assessment roll, or the time allowed for filing appeals has expired with no appeals having been filed, or if the city council conducted the hearing on the assessment roll then, at the conclusion of that hearing, the city council may accept the assessment roll as prepared or may correct, revise, raise, lower, change or modify the roll or any part thereof, or may set aside the roll and order the assessment to be made de novo. The city council shall confirm the roll by ordinance. (Ord. 1987 § 1, 2018).
3.12.040 Penalty for delinquent assessments and installments.
Each assessment or installment thereof that is collected by the city pursuant to Chapter 35.49 RCW shall be subject, at the time of delinquency, to a charge of 12 percent penalty levied on both principal and interest due upon that installment. Notwithstanding the foregoing, the city may, by ordinance, waive or reduce the penalty on any delinquent installment to the extent the city council determines the delinquency may have been caused by an error on the city’s behalf (e.g., a delinquency resulting from an inadvertent understatement by the city of the amount owed on account of an installment). (Ord. 1540 § 1, 2003; Ord. 1424 § 5, 1999).
3.12.050 Commencement of foreclosure proceedings.
All assessment lien foreclosure proceedings initiated by the city under Chapter 35.50 RCW shall be commenced for purposes of RCW 35.50.030 on or before October 1st of each year; provided, any delay in commencing an assessment lien foreclosure proceeding beyond October 1st in any given year shall not preclude the city from commencing such proceeding on any date thereafter, and for purposes of RCW 35.50.030, such later date shall be deemed to be the other date fixed by general ordinance pursuant to RCW 35.50.030. (Ord. 1540 § 2, 2003; Ord. 1424 § 6, 1999).
3.12.060 Acceleration of installments.
Upon the failure to pay the city any installment of a local improvement district assessment, when due, the entire assessment shall be due and payable as of the date of such delinquency, and the collection thereof enforced by foreclosure pursuant to Chapter 35.50 RCW. (Ord. 1424 § 7, 1999).
3.12.070 Maintenance and operation of the guaranty fund – General.
The city shall maintain and operate its guaranty fund in accordance with the laws contained in Chapter 35.54 RCW and such other laws that specifically or generally apply to the guaranty fund or obligations secured thereby, as the same may be amended from time to time. Obligations guaranteed by the guaranty fund shall include, in addition to those obligations referred to in Chapter 35.54 RCW, obligations issued under Chapter 39.50 RCW in anticipation of the issuance of local improvement district bonds. (Ord. 1424 § 8, 1999).
3.12.080 Minimum balance prescribed for the guaranty fund.
The city shall maintain a balance in the guaranty fund during each calendar year that is at least equal to the interest scheduled to come due on all outstanding obligations guaranteed by the guaranty fund during the following calendar year. Notwithstanding the foregoing, the city council may, with respect to the obligations issued on account of any local improvement district, require by ordinance that the minimum balance in the guaranty fund on account of such obligations be greater than is otherwise required by the preceding sentence. (Ord. 1424 § 9, 1999).
3.12.090 Use of guaranty fund to pay local improvement district obligations.
If, prior to an interest payment date of obligations secured by the guaranty fund, the finance director (or other city official then responsible for overseeing the city’s funds and accounts) determines that there is insufficient money in the local improvement fund or other fund or account established to pay debt service on those obligations to pay the interest or principal and interest scheduled to come due on that interest payment date, then the finance director (or other city official then responsible for overseeing the city’s funds and accounts) shall withdraw from the guaranty fund and apply an amount sufficient to pay that deficiency on that interest payment date. To the extent the amount available in the guaranty fund on such interest payment date is not sufficient to cure the deficiency, the finance director (or other city official then responsible for overseeing the city’s funds and accounts) shall issue interest bearing warrants drawn on the guaranty fund as prescribed by statute. This section is intended to supplement Chapter 35.54 RCW and to prevent defaults in the payment of obligations secured by the guaranty fund. (Ord. 1604 § 1, 2005; Ord. 1424 § 10, 1999).
3.12.100 Use of guaranty fund to pay arbitrage rebate.
To the extent that the city is required by Section 148 of the Internal Revenue Code of 1986, as amended, or any successor federal law, to make arbitrage rebate payments to the U.S. Treasury on account of the investment of the guaranty fund, such payments may be made from amounts on deposit in the guaranty fund. The city may establish subaccounts within the guaranty fund from time to time, if necessary or desirable for purposes of accounting for the investment of money therein. (Ord. 1424 § 11, 1999).
3.12.110 Ratification.
All acts heretofore taken by the city in connection with the formation of its local improvement districts and utility local improvement districts, the levying, collection and enforcement of special assessments therein, and the operation and maintenance of the guaranty fund, are ratified and approved. (Ord. 1424 § 12, 1999).
3.12.120 Extension of due date(s) for installments.
Pursuant to RCW 35.49.020, the city shall provide by ordinance the annual due date for assessment installments. If, during the course of administering the collection of such installments, the city makes an error (e.g., an inadvertent understatement by the city of the amount owed on account of an installment) in the process of collecting such installments, the city may extend one or more installment due dates so long as the city council finds that the rights of bondholders will not be adversely affected by such extensions. The city shall provide for such extensions by ordinance. (Ord. 1540 § 3, 2003).