Chapter 3.25
LOCAL IMPROVEMENT GUARANTY FUND
Sections:
3.25.010 Establishment--Levy limitations.
3.25.020 Maintenance and operation of fund.
3.25.040 Payments from fund--Defaults.
3.25.010 Establishment--Levy limitations.
The city council, at the time of making its annual budget and tax levy, shall provide for the levy of a sum sufficient, with the other sources of the guaranty fund, to pay bonds, warrants and other short-term obligations issued against the guaranty fund during the preceding fiscal year and to maintain a balance therein. In no event shall the levy in any one year exceed the greater of (1) twelve percent of the outstanding obligations guaranteed by the guaranty fund, or (2) the total amount of delinquent assessments and interest accumulated on the delinquent assessments before the levy as of September 1st of that year. (Ord. 265 § 1, 1991)
3.25.020 Maintenance and operation of fund.
This chapter constitutes the rules and regulations for the maintenance and operation of the guaranty fund. Money of the guaranty fund also may be used for and in such manner as is or may hereafter be authorized by RCW Ch. 35.54. (Ord. 265 § 6, 1991)
3.25.030 Investment of fund.
The money held in the guaranty fund may be invested in any lawful investment of city funds and the city clerk-treasurer is authorized and directed to pay into the guaranty fund all interest received from the investment of money on deposit in the guaranty fund as well as any surplus remaining in any local improvement fund after the payment of all outstanding bonds, warrants or other short-term financing payable out of the guaranty fund. (Ord. 265 § 2, 1991)
3.25.040 Payments from fund--Defaults.
A. Whenever any bond, warrant or other short-term obligation of the city guaranteed under the provisions of the laws of the state of Washington in pursuance of which this chapter is passed shall be in default, upon the presentment and delivery of any such defaulted bond, warrant or other short-term obligation, the city clerk-treasurer shall purchase the same by executing, duly issuing and delivering a warrant drawn on the guaranty fund to the person presenting the same, and the city clerk-treasurer shall honor and pay a warrant on the guaranty fund in such amount as may be necessary to pay in full any such bond, warrant or other short-term obligation with any interest to be held for the benefit of the guaranty fund. If more than one bond, warrant or other short-term obligation is so presented, they shall be purchased in their order of presentment.
B. Whenever any interest payment of the city guaranteed under the laws of the state of Washington in pursuance of which this chapter is passed shall be in default, upon the presentment and delivery of the defaulted interest coupon or, in the absence of coupons, proof of default in the payment of interest thereon, the city clerk-treasurer shall pay such interest in the same manner as set forth in subsection (A) of this section for payment of bonds, warrants or other short-term obligations in default. (Ord. 265 § 3, 1991)
3.25.050 Issuance conditions.
Warrants drawing interest at a rate not to exceed fifteen percent per year shall be issued against the guaranty fund in the same manner as other warrants of the city are issued in order to meet any liability accruing against the guaranty fund. Such warrants shall at no time exceed five percent of the outstanding obligations guaranteed by the guaranty fund. (Ord. 265 § 4, 1991)
3.25.060 Transfer of assets.
A. Upon certification by the Town Clerk-Treasurer that the guaranty fund has sufficient funds currently on hand to meet all valid outstanding obligations of the guaranty fund and all obligations of the guaranty fund reasonably expected to be incurred in the near future, the town by ordinance may provide for the transfer of assets from the guaranty fund to the town’s general fund, except that the net cash of the guaranty fund may not be reduced by such transfer to an amount less than ten percent of the net outstanding obligations guaranteed by such fund.
B. If, at any time within five years of any transfer of assets from the guaranty fund to the general fund, the net cash of the guaranty fund is reduced below ten percent of the net outstanding obligations guaranteed by the guaranty fund, the town, to the extent of the amount transferred, shall pay valid claims against the guaranty fund as a general obligation of the town and shall pay all reasonable costs of collection necessarily incurred by the holders of valid claims against the guaranty fund. (Ord. 265 § 5, 1991)