Chapter 3.03
LOCAL IMPROVEMENT GUARANTY FUND
Sections:
3.03.020 Payments to the guaranty fund.
3.03.030 Levy of taxes for guaranty fund.
3.03.040 Use of guaranty fund.
3.03.050 Purchase of tax certificates.
3.03.060 Warrants against guaranty fund.
3.03.070 Investment for surplus city funds.
3.03.010 Guaranty fund.
There has heretofore been established in the office of the city treasurer a special fund of the city to be known as the “City of Yakima Local Improvement Guaranty Fund” (in this chapter called the guaranty fund), which fund is to be drawn for the purpose of guaranteeing to the extent of said fund the payment of its local improvement bonds, interest coupons pertaining thereto, and warrants issued to pay for any local improvement ordered in the city or in any area wholly or partly outside its corporate boundaries. The money in the guaranty fund shall be held in trust for the uses and purposes provided in this chapter. (Ord. 2465 § 1 (part), 1980).
3.03.020 Payments to the guaranty fund.
If local improvement district bonds and/or warrants have been issued by the city and guaranteed by the guaranty fund, all moneys remaining in any local improvement district fund created to secure such bonds and/or warrants after all costs of improvements in such district including the redemption of all warrants and bonds of such district have been paid shall be paid into the guaranty fund. All interest and earnings derived from the investment of moneys in the guaranty fund shall be credited to the guaranty fund. (Ord. 2465 § 1 (part), 1980).
3.03.030 Levy of taxes for guaranty fund.
The city shall at the time of making its budget and levy provide for the levy of a sum sufficient, together with other sources of money for the guaranty fund, to pay any warrants issued against the guaranty fund during the preceding fiscal year pursuant to YMC 3.03.060 and establish a balance therein; provided, however, that the levy in any one year shall not exceed five percent of the outstanding obligations then guaranteed by the guaranty fund. (Ord. 2022-007 § 13, 2022; Ord. 2465 § 1 (part), 1980).
3.03.040 Use of guaranty fund.
A. Defaulted bonds, interest coupons pertaining thereto, and warrants against local improvement funds shall be purchased out of the guaranty fund, and as between the several issues of bonds, coupons or warrants no preference shall exist, but they shall be purchased in the order of their presentation.
B. Whenever any sum is paid out of the guaranty fund on account of principal or interest on a local improvement district bond or warrant, the city as trustee of said fund shall be subrogated to all the rights of the holder of such bond, interest coupon or warrant so paid, and the proceeds thereof, including proceeds of the underlying assessment, shall become a part of the guaranty fund.
C. Money remaining in the guaranty fund after all bonds and warrants guaranteed and protected by said fund have been paid, and moneys in such fund exceeding the principal amount of bonds or warrants guaranteed by such fund, may be transferred by resolution of the city council to a current expense fund of the city. (Ord. 2465 § 1 (part), 1980).
3.03.050 Purchase of tax certificates.
A. For the purpose of protecting the guaranty fund, so much of the guaranty fund as is necessary may be used to purchase certificates of delinquency for general taxes on property subject to local improvement assessments which underlie local improvement bonds, interest coupons pertaining thereto, or warrants guaranteed by the guaranty fund, or to purchase such property at county tax foreclosures, or from the county after foreclosure.
B. The city, as trustee of the guaranty fund, may foreclose the lien of general tax certificates of delinquency and purchase the property at foreclosure sale and the costs of such foreclosures shall be charged to and paid from the guaranty fund.
C. After acquiring title to property by purchase at general tax foreclosure sale or from the county after foreclosure, the city may lease it or sell it at public or private sale at such price on such terms as may be determined by resolution of the city council. All proceeds shall belong to and be paid into the guaranty fund. (Ord. 2465 § 1 (part), 1980).
3.03.060 Warrants against guaranty fund.
Warrants shall be issued by the city against the guaranty fund to meet any liability accruing against it. Warrants which are issued to meet such liabilities shall be authorized by the city council upon such terms as the council deems reasonable; provided, however, that such warrants shall not bear interest at a rate exceeding that permitted by law. Warrants authorized pursuant to the provisions of this section shall not be issued and outstanding in a principal amount exceeding five percent of the outstanding obligations protected and guaranteed by the guaranty fund. (Ord. 2465 § 1 (part), 1980).
3.03.070 Investment for surplus city funds.
Local improvement district bonds and warrants which are within the protection of the guaranty fund of the city shall be considered legal investments for any available surplus funds of the city which now or hereafter may be authorized by the city council to be invested in such bonds or warrants. (Ord. 2465 § 1 (part), 1980).