There is established for the city a fund for the purpose of guaranteeing, to the extent of such fund and in the manner provided in this chapter, the payment of its local improvement bonds and warrants issued to pay for any local improvement ordered subsequent to April 7, 1926.
(Ord. 322 § 1, 1927)
The fund is designated the "local improvement guaranty fund." For the purpose of maintaining the same, the city council shall levy from time to time as other taxes are levied such sums as may be necessary to meet the financial requirements thereof; provided, that such sums so levied in any year shall not be more than sufficient to pay the outstanding warrants on said fund and to establish therein a balance, which combined levy in one year shall not exceed five percent of the outstanding obligations thereby guaranteed. The tax levies in this chapter authorized and directed shall be additional to (and if need be in excess of) any and all statutory and other limitations applicable to the tax levies of the city.
(Ord. 322 § 2, 1927)
A. 
Whenever there shall be paid out of the local improvement guaranty fund any sum on account of principal or interest of a local improvement bond or warrant, the city as trustee for the fund shall be subrogated to all the rights of the holder of the bond or interest coupon or warrant so paid, and the proceeds thereof, or the assessment underlying the same, shall become part of such local improvement guaranty fund. There shall also be paid into such fund the interest received from bank deposits of the fund as well as any surplus remaining in any local improvement fund guaranteed in this chapter after the payment of all outstanding bonds or warrants payable primarily out of such local improvement fund. Warrants drawing interest at the rate not to exceed six percent shall be issued as other warrants are issued by the city against such local improvement guaranty fund to meet any liability against the same. At the time of making the annual budget and tax levy, the city shall provide for the levying and collecting of a sum sufficient with the other resources of the fund to pay all warrants so issued during the preceding fiscal year; provided, that such warrants at no time exceed five percent of the outstanding bond or warrant obligations guaranteed by the fund. Among the several issues of bonds or warrants guaranteed by the fund no preference shall exist but defaulted interest coupon bonds and warrants shall be purchased out of the fund in the order of their presentation.
B. 
So much of the money of the said local government guaranty fund as is necessary may be used to purchase certificates of delinquency for the general taxes on property subject to local improvement assessments underlying bonds or warrants guaranteed by said fund or to purchase such property at county foreclosure or from the county after foreclosure, for the purpose of protecting the guaranty fund. The fund shall be subrogated to the rights of the city and the city may foreclose the lien of such general tax certificates of delinquency and purchase the property at the foreclosure sale. After so acquiring title to real property, the city may lease or sell and convey the same as public or private sale for such price and on such terms as may be determined by resolution of the city council, any provision of law or other ordinance to the contrary notwithstanding, and all proceeds resulting from such sale shall belong to and be paid into such guaranty fund. The city clerk-treasurer shall be the executive officer of said fund under and subject to the direction of the city council by resolution.
(Ord. 322 § 3, 1927)
A. 
The city shall not order any local improvement to be paid for in whole or in part by local improvement assessments where the estimated cost of such improvement, if such cost is all to be assessed in the district, or that portion of the estimated cost to be assessed if a portion only of the estimated cost is to be assessed, when added to all other outstanding and unpaid local improvement assessment against the property included in the district, excluding penalties and interest, shall exceed the actual value of the real property, exclusive of improvements thereon, within the district according to the valuation last placed upon it for the purposes of general taxation. When a local improvement is petitioned for by the owners of 75 percent of the lineal frontage upon the improvement and 75 percent of the area of the property within the district, and the petition requests that such limitation be exceeded, the city council may proceed with the improvement in the usual manner if the property owners so petitioning, or any of them, or any person in their behalf, shall deposit with the city a sum in cash equal to the amount that the improvement exceeds the limitations provided in this section. The sum so deposited shall be applied and credited on the assessment roll for the district by the city clerk-treasurer upon his receipt of the roll for collection. The city council may by unanimous vote order the construction of sanitary sewers and necessary accessories for the disposal of sewage, or for the construction of any sanitary fill or for the filling of any street to the established grade over any tide flats or tidelands in the manner now provided by law where in its judgment, the same are necessary for the public health, and may assess a part or the whole of the cost thereof to the property benefited without regard to the above and foregoing limitation. No assessment for diking, draining, sanitary fill or filling any street to the established grade over any tide flats or tidelands or for storm or sanitary sewers or water mains shall be included in any computation of outstanding assessments under the provisions of this section.
B. 
Before ordering any improvement under this section, the city council shall require and receive a report from the street committee and city engineer certifying in detail the local improvement assessments outstanding and unpaid against the property in the proposed district together with the aggregate of the actual value of the real property in the district, exclusive of the improvements thereon, according to the valuation last placed upon it for the purpose of general taxation. In the absence of fraud or gross mistakes, such certificate shall be final and conclusive in computing the valuation of any property in the district, any nonassessable railroad operating property or property owned by the United States or the state, Skagit County, or any school district or other public corporation, shall be valued at the same rate as assessed property similarly situated.
(Ord. 322 § 4, 1927)
Neither the holder nor the owner of any bond or warrant issued under the provisions of this chapter shall have any claim therefor against the city except for payment from the special assessments made for the improvement for which said bond or warrant was issued, and except as against the local improvement guaranty fund of the city. The city shall not be liable to any holder or owner of a bond 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 said local improvement guaranty fund. A copy of the foregoing part of this section shall be plainly written, printed or engraved on each bond issued and guaranteed under the provisions of this chapter, and such writing, printing or engraving shall be deemed a sufficient compliance with the requirements of Section 9405 of Remington's Compiled Statutes.
(Ord. 322 § 5, 1927)