There is established by the city a fund for the purpose of guaranteeing, to the extent of such fund and in the manner hereinafter provided, the payments of its local improvement bonds and warrants, issued to pay for any and all local improvements.
(Ord. 68 § 1, 1934)
The fund established as set forth in WMC § 3.12.010 is to be called and designated "local improvement guaranty fund."
(Ord. 68 § 2, 1934)
For the purpose of maintaining local improvement guaranty fund the city shall hereafter from time to time, as other taxes are levied, levy such sums as may be necessary to meet the financial requirements thereof; provided, that such sums so levied in any one year shall not be more than sufficient to pay the outstanding warrants on the fund and to establish therein a balance which combined levy in any one year shall not exceed five percent of the outstanding obligations thereby guaranteed. The tax levies herein authorized and directed shall be additional to and if need be in excess of any and all statutory and charter limitations applicable to the tax levies of the city.
(Ord. 68 § 3, 1934)
Whenever there shall be paid out of a 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, of the assessment underlying the same shall become part of the guaranty fund. There shall also be paid into each guaranty fund the interest received from bank deposits of the fund, as well as any surplus remaining in any local improvement fund guaranteed hereunder after the payment of all outstanding bonds or warrants, payable primarily out of such local improvement fund.
(Ord. 68 § 4, 1934)
Warrants drawing interest at a rate not to exceed six percent per year shall be issued, as other warrants are issued by the city, against a 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 sources of the fund, to pay warrants issued during the preceding fiscal year; provided, that such warrants shall at no time exceed five percent of the outstanding obligations of bonds or warrants guaranteed by the fund. As among the several issues of bonds or warrants guaranteed by the fund no preference shall exist, but defaulted interest coupons, bonds and warrants shall be purchased out of the fund in order of their presentation.
(Ord. 68 § 5, 1934)
So much of the money 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, underlying bonds or warrants guaranteed by the fund or to purchase such property at county tax foreclosures 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 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 at public or private sale for such price and on such terms as may be determined by resolution of the city council or other legislative body, any provision of law, charter or ordinance to the contrary notwithstanding, and all proceeds resulting from such sales or leases shall belong to and be paid into the guaranty fund here established.
(Ord. 68 § 6, 1934)
Improvement under this chapter shall be ordered, where such improvement is to be paid for in whole or in part, by local assessment where the estimated cost of such improvement, if such cost is all to be assessed to the property in the district, or that portion of the estimated cost to be assessed, if a portion only of the total cost is to be assessed, when added to all other outstanding and unpaid local improvement assessments 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 purposes of general taxation; provided, that 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 or other legislative body 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 estimated cost of the improvement shall exceed the limitation herein before provided in this chapter. The sum so provided and deposited shall be applied and credited on the assessment roll for the district, by the treasurer upon his receipt of the roll for collection; provided further, that the city council or other legislative body of the city 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 in the manner now provided for by law, where in its judgment the same are necessary for public health, and may assess a part or a whole of the costs thereof to the property benefitted, without regard to the foregoing limitation; provided further, that no assessment for diking, draining, sanitary fill or sanitary sewers or water mains shall be included in any computation of outstanding assessments under the provisions of this chapter.
(Ord. 68 § 7, 1934)
Before ordering any improvement hereunder the city council or other legislative body of the city shall require and receive a report from the proper town officer or authority designated by ordinance, certifying in detail the local improvement assessments outstanding and unpaid against the city in the proposed district, together with the actual value of the real property, exclusive of improvements thereon, according to the valuation last placed upon it for the purposes of general taxation. In the absence of fraud or gross mistake, such certificate shall be final and conclusive in the computing of the value of the property in the district; any nonassessable railroad property or property owned by the United States or the state or county or town, school district or other public corporation, shall be valued at the same rate as assessed property similarly situated.
(Ord. 68 § 8, 1934)
Neither the holder or owner of any bond or warrant issued under the provisions of this chapter shall have any claim therefor against the city 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 the city and 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 such bond or warrant in case of nonpayment shall be confined to the enforcement of the assessment and to the guaranty fund. A copy of the foregoing part of this section shall be plainly written, printed or engraved on each bond issued and guaranteed hereunder, and the writing, printing or engraving shall be deemed sufficient compliance with the requirements of RCW 35.45.070.
(Ord. 68 § 9, 1934)