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HomeMy WebLinkAbout1980-2465 RULES & REGULATIONS FOR THE MAINTENANCE & OPERATION OF LOCAL IMPROVEMENT GUARANTY FUND. ORDINANCE NO. AN ORDINANCE relating to funds and accounts; prescribing rules and regulations for the maintenance and operation of the Local Improvement Guaranty Fund of the City; and enacting Chapter 3.03, "Local Improvement • Guaranty Fund", and Sections 3.03.010, 3.03.020, 3.03.03 3 03 040 3 03 050 3 03 060 and 3.03.070 as a new chapter and new sections of the City of Yakima Municipal Code. WHEREAS, the City of Yakima intends to create from time to time local improvement districts pursuant to the authority granted to the City by R.C.W. Chapter 35.43, and WHEREAS, Chapter 35.54 of the Revised Code of Washington has established in every city a fund to be designated the local improvement guaranty fund and provided that each city shall prescribe rules and regulations for the maintenance and operation of such fund, now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Settioh 1, Chapter 3.03, "Local Improvement Guaranty Fund", and Sections 3.03.010, 3.03,020, 3,03.030, 3.03.040, 3.03.050, 3.03.060 and 3.03.070 thereof, are hereby enacted as a new chapter and new sections of the City of Yakima Municipal Code to read as follows: "Chapter 3.03 LOCAL IMPROVEMENT GUARANTY FUND 3.03.010 Guaranty Fund. There has heretofore been established in the office of the City Treasurer a special fund of th City to be known as the 'City of Yakima Local Improvement Guaranty Fund' (herein called the 'Guaranty Fund'), which fund is to be drawn for the purpose of guaranteeing to the extent of said fund th 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 herein provided. 3.03.020 Payments to the Guaranty Fund. If 410 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 im- provement 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 th investment of moneys in the Guaranty Fund shall be credited to the Guaranty Fund. 3.03.030 Levy of Taxes for Guaranty Fund. The City shall at the time of making its annual budget and levy provide for the levy of a sum sufficient, together with other sources of money for the Guaranty Funkto pay any warrants issued against the Guaranty Fund during the preceding fiscal year pursuant to Section 3.03.060 herein and establish a balance therein; provided, however, that the levy in any one year shall not exceed five percent of the outstanding obliga- tions then guaranteed by the Guaranty Fund. 3.03.040 Use of Guaranty Fund. 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. 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. 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 exceed- ing the principal amount of bonds or warrants guaran- teed by such fund, may be transferred by resolution of the City Council to a current expense fund of the City. 3.03.050 Purchase of Tax Certificates. 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 assess- ments 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. 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. After acquiring title to progerty 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. 3.03.060 Warrants Against Guaranty Fund. War- rants 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, how- ever, 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 ex- ceeding five percent of the outstanding obligations - protected and guaranteed by the Guaranty Fund. 3.03.070 Investment for Surplus C 1.t Funds . Local improvement district bonds an 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." Section 2. This ordinance shall be in full force and effect thirty days after its passage, approval and publication as pro- , vided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 4 day of Ste/la/0 , 1980. Mayor ATTEST: / A • C C er 410