Spokane Municipal Code

Title 07 Finance

Chapter 07.08 Funds

Article III. Debt Service Funds

Section 07.08.202 Local Improvement Guaranty Fund

1. There is established in the City a fund to be designated the “local improvement guaranty fund” for the purpose of guaranteeing, to the extent of the fund, the payment of its local improvement bonds and warrants issued to pay for any local improvement.

2. Interest and earnings from the fund shall be paid into the fund.

3. Whenever any sum is paid out of said local improvement guaranty fund on account of principal or interest of a local improvement bond or warrant, the City, as trustee of 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 of the underlying assessment, shall become part of the guaranty fund.

4. If any local improvement fund guaranteed by this fund has a surplus remaining after the payment of all outstanding bonds and warrants payable therefrom, the surplus shall be paid into the guaranty fund.

5. Without regard to statutory limitations on tax levies by cities, the city council may, in its annual budget and tax levy, provide for the levy of a sum sufficient, along with other sources of the fund, to pay the warrants issued against the fund during the preceding year and to establish a balance

1. 1. The levy in any one year may not exceed five percent of the outstanding obligations guaranteed by the fund.

6. Defaulted bonds, interest coupons and warrants against local improvement funds shall be purchased out of the guaranty fund without preference as between issues.

7. For the purpose of protecting the guaranty fund, it may be used to purchase certificates of delinquency for general taxes on property subject to local improvement assessments which underlie the bonds, coupons or warrants guaranteed by the fund, or to purchase such property at county tax foreclosures, or from the county after foreclosure. Costs and expenses incidental to foreclosure shall be charged to and paid from the guaranty fund.

8. Property acquired upon or after foreclosure may be sold or leased on such terms as determined by resolution. All proceeds shall be paid into the local improvement guaranty fund.

1. Warrants against the fund draw interest at a rate not to exceed six percent. Warrants shall at no time exceed five percent of the outstanding obligations guaranteed by the fund.

10. The amount of assessments deferred pursuant to RCW 35.43.250 are paid out of the guaranty fund which fund shall have a lien on the benefited property in an amount equal to the deferral plus interest.

11. Upon certification by the City treasurer that the local improvement fund has sufficient funds currently on hand to meet all valid outstanding obligations of the fund and all other obligations of the fund reasonably expected to be incurred in the near future, the city council may by ordinance transfer assets from such fund to the general fund so long as the net cash of the fund is not thereby reduced to an amount below ten percent of the net outstanding obligations guaranteed by the fund.

Date Passed: Monday, May 7, 2007

Effective Date: Wednesday, June 20, 2007

Recodification ORD C34024 Section 1