Chapter 3.11
LOCAL IMPROVEMENT
GUARANTEE FUND
Sections:
3.11.010 Fund established – Maintenance.
3.11.020 Payments from fund.
3.11.030 Use of fund.
3.11.010 Fund established – Maintenance.
There is hereby established for the city of Edmonds a fund for the purpose of guaranteeing to the extent of such fund and in the manner hereinafter provided the payment of its local improvement bonds and warrants issued to pay for any local improvements ordered. Such fund shall be designated “local improvement guarantee fund.” For the purpose of maintaining the same the city of Edmonds 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 sum 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 any one year shall not exceed five percent of the outstanding obligations thereby guaranteed. [Ord. 512 § 1, 1938].
3.11.020 Payments from fund.
Whenever there shall be paid out of said guarantee fund any sum on account of principal or interest of a local improvement bond or warrant, the city of Edmonds, 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, shall become party of the guarantee fund. There shall also be paid into said guarantee 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. Warrants drawing interest at a rate not to exceed six percent shall be issued, as other warrants are issued by the city of Edmonds, against the said guarantee fund to meet any liability accruing against it; and at the time of making its annual budget and tax levy the city of Edmonds shall provide for the levying of a sum sufficient, with other resources of the fund, to pay warrants so issued during the preceding fiscal year; provided, that such warrants shall at no time exceed five percent of the outstanding bond obligation guaranteed by said 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 the order of their presentation. [Ord. 512 § 12, 1938].
3.11.030 Use of fund.
So much of the money of the local improvement guarantee 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 guarantee fund. Said fund shall be subrogated to the rights of the city of Edmonds, and the city may foreclose the lien of general tax certificates of delinquency and purchase the property at the foreclosure sale. Whenever the city council of the city of Edmonds shall foreclose a lien of general tax certificates of delinquency and purchase the property at a foreclosure sale, the court costs and costs of publication and expenses for clerical work and/or other expenses incidental thereto, shall be chargeable to and payable from the local improvement guarantee fund. 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 council, and provisions of law or ordinance to the contrary notwithstanding, and all proceeds resulting from such sale shall belong to and be paid into the guarantee fund. [Ord. 512 § 3, 1938].