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Chapter 7.05
Local ImprovementsSections:
Article I. Rate Provisions
7.05.010 Interim Warrant Interest Rates.
Article II. Improvements at Substantial Risk
7.05.020 Local Improvement Districts with Substantial Risks to the City.
7.05.021 Definitions.
7.05.022 Analysis.
7.05.023 Determination.
7.05.024 Agreement Required.
7.05.025 Determining Security for Assessments.
7.05.026 City Council Review.
7.05.027 Form of Security.
7.05.028 Release of Security.
Article III. Time Provisions
7.05.100 Time for Foreclosure.
Article IV. Hearing Procedures
7.05.400 Scope and Purpose of Article.
7.05.410 Authority of Hearing Examiner over Local Improvement Districts.
7.05.420 Required Hearings.
7.05.430 Time of Hearing.
7.05.440 Notice – LID Formation Hearing.
7.05.450 Notice – Assessment Hearing.
7.05.460 Staff Report – Formation Hearing.
7.05.470 Staff Report – LID Assessment Roll Hearing.
7.05.480 Testimony and Argument.
7.05.490 Criteria for LID Formation Recommendation.
7.05.500 Criteria for Decision on Assessment Roll.
7.05.510 Report to the City Council.
7.05.520 Action by the City Council.
7.05.530 Right of Appeal.
7.05.540 Requirements for Appeal.
7.05.550 Processing of Appeal.
Article I. Rate Provisions
7.05.010 Interim Warrant Interest Rates.
A. Interest rates on interim warrants for local improvement district construction may be set by the mayor.
B. The interest rate shall be fixed on a periodical basis by the city manager in order that the rate shall approximate the general average of bond rates for local improvement districts.
[Ord. C32755; Passed: 12/4/2000]
Article II. Improvements at Substantial Risk
7.05.020 Local Improvement Districts with Substantial Risks to the City.
Public improvements proposed to be financed and constructed by the local improvement district process shall be subject to the requirements of this article whenever the project is determined to have a potential for substantial risks to the City because of a limited number of proponents or whenever the marketability of bonds and the risk of payment of the bonds is adversely affected.
[Ord. C27891; Passed: 4/8/1985]
7.05.021 Definitions.
A. “Bonds” means any and all local improvement district bonds hereafter authorized to be issued to pay the costs of the improvements.
B. “Developed” means real property with improvements constructed thereon within the meaning and purposes of assessments for taxation.
C. “Improvements” means those capital improvements to be installed and constructed by the local improvement district process.
[Ord. C27891; Passed: 4/8/1985]
7.05.022 Analysis.
The director of engineering services, in coordination with the comptroller, the City’s fiscal advisor and other appropriate staff, shall analyze a proposed local improvement district project to determine the potential risks of committing City staff to the project and any factors that may adversely affect the marketability of bonds. The determination shall include, but not be limited to, the following factors:
A. the diversification of ownership of the property in the proposed district;
B. the percentage of property owned by the proponent(s) of the project;
C. the extent of development within the proposed district;
D. the purpose of the proposed improvements;
E. the potential effects on the City of the proposed project; and
F. past experience with the proponent(s).
[Ord. C32762; Passed: 12/11/2000]
7.05.023 Determination.
The director of public works and utilities and the comptroller shall submit an analysis and recommendation to the mayor as to whether the project is considered a substantial risk to the City. The mayor shall have the authority to accept or reject the recommendation. In the event the mayor declares the project to have substantial risks to the City, the mayor shall send written notice of this determination to the proponent(s) of the project.
[Ord. C32755; Passed: 12/4/2000]
7.05.024 Agreement Required.
As a condition precedent to the administrative processing of the proposed local improvement district, the principal proponent(s) shall be required to execute an agreement with the City containing the following essential terms:
A. The principal proponent(s) shall agree to be bound by the determination of the mayor and by the requirements of this chapter.
B. The principal proponent(s) shall provide adequate security in an amount and form to be approved by the finance director to guarantee the payment of engineering and administrative costs incurred by the City for the preparation of the LID, in the event the LID fails or any reason the project is not completed.
C. The principal proponent(s) shall agree to be bound by the city council determination for adequate security to guarantee the payment of assessments on property owned by the principal proponent(s).
D. The City shall not guarantee the formation, approval, or completion of the proposed project.
[Ord. C32755; Passed: 12/4/2000]
7.05.025 Determining Security for Assessments.
Prior to the formation of a local improvement district for a substantial risk project the city manager will cause City staff, in cooperation with the City’s fiscal advisor, to review the proposed improvement and report to the city council on the following criteria relating to the amount of security recommended to guarantee the payment of assessments:
A. strength of current financial statement of the proponent(s);
B. degree of liquidity potential of the proponent(s);
C. size and type of proposed LID, including the extent of property in the district owned by the proponent(s);
D. general market conditions for the class of real estate development proposed by the proponent(s);
E. status of the City’s LID guaranty fund at the time of the proposed formation of the LID;
F. proposed location of LID relating to its consistency with sound growth management principles;
G. number of property owners involved;
H. potential marketability of the LID bonds;
I. degree of equity investment in the proposed LID;
J. the total number of LID projects proposed by the principal proponent(s) and the total of the costs for all projects proposed in the district.
[Ord. C27891; Passed: 4/8/1985]
7.05.026 City Council Review.
At the time of the hearing on the formation of the LID, the council will review the report and recommendation of staff and may waive all or part of the assessment security requirement, may increase the requirement, or may deny the improvement. In the event the council approves a majority petition or adopts a resolution for the formation of the LID, and approves a security requirement, the council shall approve the execution of an agreement by the City with the principal proponent(s) providing for the assessment security requirement.
[Ord. C27891; Passed: 4/8/1985]
7.05.027 Form of Security.
Both the security guaranteeing administrative and engineering costs and the security guaranteeing assessments may be in the form of cash, or an irrevocable letter of credit from a local commercial bank, or the deposit of cash equivalents in an escrow account of a local commercial bank. The form of the required deposit shall be subject to the review and approval of the finance director. The interest earnings on the security shall be remitted to the principal proponent(s) during the life of the account.
[Ord. C27891; Passed: 4/8/1985]
7.05.028 Release of Security.
The security guaranteeing administrative and engineering costs shall be released in full thirty days following passage of the ordinance ordering construction of the improvement. The security guaranteeing payment of assessments shall remain in effect until the assessments on property owned by the principal proponent(s) are paid in full, except that the finance director may, in his discretion, allow a pro rata reduction or release of security upon conditions which reduce the risk of default.
[Ord. C27891; Passed: 4/8/1985]
Article III. Time Provisions
7.05.100 Time for Foreclosure.
If, on the first day of January in any year, two installments of any local improvement district assessment are delinquent, or if the final installment thereof has been delinquent for more than one year, the treasurer proceeds with foreclosure of the delinquent installments by causing a foreclosure suit to be commenced in the name of the City in the Spokane County superior court. Any such suit is to be commenced on or before August 1st of that year and will comply with all the requirements of State law for local improvement district assessment foreclosures.
[Ord. C28642; Passed: 2/2/1987]
Article IV. Hearing Procedures
7.05.400 Scope and Purpose of Article.
This article, in supplementation of RCW chapters 35.43 and 35.44, specifies the procedures for hearings held to form local improvement districts and to determine assessments. Matters not provided for in this article are determined by reference to the local improvement statutes and court decisions.
[Ord. C29326; Passed: 3/6/1989]
7.05.410 Authority of Hearing Examiner over Local Improvement Districts.
The authority and responsibility of the city council as legislative authority to hold hearings for the establishment and assessment of local improvement districts, as provided in RCW 35.43.140 and 35.44.070, is delegated to the hearing examiner. Specifically, the hearing examiner is authorized and directed to:
A. hold all required hearings on the formation of a local improvement district initiated by resolution and issue a recommendation to the city council to:
1. form or not form the district, or
2. add property to or delete property from the district;
B. hold all hearings on:
1. the assessment roll for a local improvement district and to confirm, correct, revise, raise, lower, change, or modify the roll, or any part thereof, or to set aside the roll and order the assessment to be made anew,
2. any assessment upon the roll that is raised or changed to include omitted property.
[Ord. C29326; Passed: 3/6/1989]
Cross Reference: SMC ch. 17.720.
7.05.420 Required Hearings.
A. The hearing examiner must conduct at least one hearing on the:
1. formation of a local improvement district, and
2. assessment roll for the district prior to issuing a recommendation or decision.
B. The hearings of the hearing examiner are the only hearings held for the establishment and assessment of local improvement districts.
[Ord. C29326; Passed: 3/6/1989]
7.05.430 Time of Hearing.
The city council, in consultation with the hearing examiner, fixes the time and place of all hearings required under this article, except the hearing examiner fixes the time and place of any continued hearing.
[Ord. C29326; Passed: 3/6/1989]
7.05.440 Notice – LID Formation Hearing.
A. The engineering services department, at least fifteen days prior to the date set for the hearing, mails notice of the hearing on the formation of the LID to all owners and reputed owners of property within the boundaries of the proposed LID.
B. The engineering services department causes notice of the formation hearing to be published in at least two consecutive issues of the official newspaper of the City, the first publication to be at least fifteen days prior to the date set for the hearing.
C. The mailed notice contains at least the following information:
1. a description of the proposed improvement;
2. a statement that a description of the proposed district boundaries is available in the public works department;
3. the estimated cost of the proposed improvement;
4. a statement that actual assessments may vary from assessment estimates so long as they do not exceed a figure equal to the increased true and fair value the improvement adds to the property;
5. the estimated special benefits to the particular lot, tract, or parcel resulting from the proposed local improvement;
6. the time and place of the hearing;
7. a statement that anyone may testify at the hearing;
8. a statement that written comments on the proposed improvement will be accepted;
9. a statement that the hearing before the hearing examiner shall be the only hearing held on the formation of the proposed local improvement district and that the city council will act on the hearing examiner’s recommendation based on the record;
10. a statement that a copy of the report of the engineering services department to the hearing examiner may be obtained at the engineering services department within seven days prior to the hearing;
11. the office address and telephone number of the individual in the engineering services department from whom additional information may be obtained.
D. The published notice contains at least the following information:
1. the full text of the initiating resolution; and
2. as provided in subsections (C)(8) through (C)(10) of this section.
[Ord. C32762; Passed: 12/11/2000]
7.05.450 Notice – Assessment Hearing.
A. The engineering services department causes notice of the assessment roll hearing to be published in at least two consecutive issues of the official newspaper, the last publication to be at least fifteen days before the date fixed for the hearing.
B. The engineering services department, at least fifteen days prior to the date set for the hearing, mails notice of the assessment roll hearing to the owner and reputed owner of the property whose name appears on the assessment roll, at the address shown on the tax rolls of the county treasurer, for each item of property described on the list.
C. The published notice is identified as an assessment roll hearing notice and contains at least the following information:
1. the boundaries of the district;
2. a description of the improvement;
3. the time and place of the hearing;
4. a statement that specific information regarding the assessment roll may be obtained from the engineering services department;
5. a statement that written objections to the assessment roll must comply with the requirements of SMC 7.05.480 and be submitted to the director of engineering services by the date scheduled for the hearing; and that only those persons who shall have submitted such written objection will be permitted to testify at the hearing;
6. a statement that the hearing will be held before the City of Spokane hearing examiner and that it will be the only hearing on the assessment roll;
7. a statement that at the time and place fixed for the hearing on the assessment roll (and at times to which the hearing may be adjourned) the hearing examiner will sit as a board of equalization for the purpose of considering the assessment roll;
8. a statement that at the hearing the hearing examiner will consider the objections made and may correct, revise, raise, lower, change, or modify the roll or any part thereof, or set aside the roll and order the assessment to be made anew;
9. a statement that the decision of the hearing examiner will be final unless it be appealed to the city council;
10. a statement that the decision of the hearing examiner may be appealed by only persons who have submitted written objections that comply with the requirements of this article and that all appeals must comply with the requirements of SMC 7.05.540;
11. The office address and telephone number of the individuals in the engineering services department from whom additional information may be obtained.
D. The mailed notice must contain all of the information required for the published notice and, in addition, at least the tax code number for each lot, tract, or parcel within the district boundaries owned by the property owner and the assessment for each of said lots, tracts, or parcels.
[Ord. C32762; Passed: 12/11/2000]
7.05.460 Staff Report – Formation Hearing.
A. The engineering services department prepares a report on the proposed improvement containing the following information:
1. a copy or a summary of the resolution initiating the formation hearing;
2. a description of the proposed local improvement, including its purpose or the reason it is being proposed;
3. a map of the proposed local improvement district boundaries;
4. the estimated cost of the entire project;
5. the estimated cost of the project to each lot, tract, or parcel within the proposed LID boundaries;
6. the estimated value of the special benefits of the project to each lot, tract, or parcel within the proposed LID boundaries and a description of the nature of said benefits;
7. copies or summaries of any written comments received on the proposed improvement;
8. a copy of the mailed notice of the hearing and a certificate or affidavit of mailing, signed by the director of engineering services, stating the date the notice was mailed;
9. a copy of the published notice of the hearing and a certificate or affidavit of publication, signed by the city clerk, stating the dates of publication.
B. The engineering services department makes a copy of its report available to the hearing examiner at least seven days before the date set for the hearing.
[Ord. C32762; Passed: 12/11/2000]
7.05.470 Staff Report – LID Assessment Roll Hearing.
A. The engineering services department prepares a report on the LID assessment roll containing the following information:
1. a description of the project;
2. a map of the local improvement district;
3. a copy of the ordinance ordering the formation of the LID;
4. final itemized costs of the project;
5. the final assessment for each tract, lot, or parcel located within the LID;
6. the method of assessment used;
7. a copy of all written objections and comments received;
8. a copy of the mailed notice of the hearing and an affidavit or certificate of mailing, signed by the director of engineering services, stating the dates the notice was mailed;
9. a copy of the published notice of the hearing and a certificate or affidavit of publication, signed by the city clerk, stating the dates of publication.
B. The engineering services department makes a copy of its report available to the hearing examiner at least seven days before the date set for the hearing.
[Ord. C32762; Passed: 12/11/2000]
7.05.480 Testimony and Argument.
A. The rules in this subsection apply to hearings held before the hearing examiner for both the formation and assessment of local improvement districts. The hearing examiner may:
1. take official notice of judicially cognizable facts and general, technical, or scientific fact within his or her specialized knowledge, so long as any such noted facts are included in the record and findings;
2. call witnesses and request written evidence to obtain necessary information to make a decision or recommendation;
3. request a written comment from and the appearance of a designated representative of any City department that has an interest in or may affect a proposed LID;
4. require that testimony be given under oath or affirmation;
5. allow cross-examination of witnesses;
6. accord such weight to the evidence as is deemed appropriate, the judicial rules of evidence not being strictly applied.
B. During an LID formation hearing, any person who would be affected by the formation of the local improvement district may testify and all reasonably probative evidence is permitted.
C. During an LID assessment roll hearing:
1. only a person who has submitted written objections to the assessment roll may testify in objection to it;
2. to be considered, a written objection must contain:
a. the nature of the objection,
b. the evidence to be presented in support of the objection,
c. the witnesses to be called to testify in support of the objection;
3. the hearing examiner may continue any hearing in which an objector seeks to alter the nature of the objection or present evidence or call witnesses not identified in the written objection.
[Ord. C29326; Passed: 3/6/1989]
7.05.490 Criteria for LID Formation Recommendation.
The hearing examiner does not recommend approval of the formation of an LID, and the city council does not pass the ordinance creating the LID, unless it is determined that:
A. all property that will be benefited by the proposed improvement is included within the proposed boundaries of the LID;
B. only property that will be benefited by the proposed improvement is included within the proposed boundaries of the LID;
C. formation of the LID is consistent with the adopted policies of the city council; and
D. all procedures set forth in RCW chapter 35.43 and this article have been followed.
[Ord. C29326; Passed: 3/6/1989]
7.05.500 Criteria for Decision on Assessment Roll.
The hearing examiner does not confirm an assessment roll, and the city council does not pass the ordinance confirming the roll, unless it is determined that:
A. the assessment roll is correct;
B. all property in the LID is specially benefited in an amount at least equal to the assessment;
C. all property in the LID has been assessed proportionally in relation to all other property in the LID; and
D. all procedures set forth in RCW chapter 35.44 and this article have been followed.
[Ord. C29326; Passed: 3/6/1989]
7.05.510 Report to the City Council.
A. The hearing examiner prepares a report to the city council containing the following information:
1. a copy or summary of the report of the public works and utilities division;
2. a copy or summary of all written comments, objections and testimony;
3. findings and conclusions;
4. the hearing examiner’s recommendation or decision;
5. when the recommendation or decision is for approval, the proposed ordinance to form the LID or confirm the assessment roll;
6. in the case of a formation hearing, the portion of the total cost of the project assignable to property owned by persons objecting to the formation.
B. The report of the hearing examiner constitutes the record of the hearing.
[Ord. C32762; Passed: 12/11/2000]
7.05.520 Action by the City Council.
A. LID Formation.
1. The city council makes the final decision on the formation of an LID.
2. The city council bases its decision on the record and does not hold further hearing except to the extent that the procedures of the city council may allow public comment on a proposed ordinance.
3. The city council may affirm, reverse, or remand the recommendation of the hearing examiner, and may modify the recommendation to add property to or delete property from the proposed LID district.
4. When the city council decides to approve the formation of an LID, it adopts an ordinance forming the LID district.
B. Assessment Roll.
1. The city council reviews a decision of the hearing examiner on an assessment roll only if the decision is appealed as provided in SMC 7.05.540.
2. The review of the city council is limited to the record. No party to the appeal may submit or present, and the city council may not accept, new evidence or testimony.
3. Upon review, the city council may affirm, reverse, or remand the decision of the hearing examiner, and may correct, change, or annul the assessment insofar as it affects the property of the appellant.
4. When the council’s review results in a confirmation of the assessment roll, it adopts an ordinance confirming the roll.
C. Standards of Review.
The city council affirms the recommendation or decision of the hearing examiner unless it determines that the recommendation or decision is founded on a fundamentally wrong basis or is arbitrary and capricious.
[Ord. C29326; Passed: 3/6/1989]
7.05.530 Right of Appeal.
A. Only a decision of the hearing examiner on an assessment roll may be appealed.
B. Only the division of public works and utilities or a party of record may appeal, “party of record” meaning a person who has submitted a written objection to the assessment roll in accordance with the requirements of this article.
[Ord. C32762; Passed: 12/11/2000]
7.05.540 Requirements for Appeal.
A. In order to appeal a party of record or the division of public works and utilities must, within ten days of the date of the written decision of the hearing examiner, file the appeal, along with the fee provided in SMC 8.02.042, with the city clerk.
B. The appeal must:
1. describe the decision being appealed;
2. give the name and address of the appellant and of the appellant’s attorney or other agent, if any;
3. identify specifically the error of fact, law, or procedure alleged to have been made by the hearing examiner and the effect of the alleged error on the decision;
4. state the redress sought by the appellant.
[Ord. C32762; Passed: 12/11/2000]
7.05.550 Processing of Appeal.
A. Upon receiving a valid appeal the city clerk presents the matter to the city council for setting a date for consideration. The city council schedules the appeal for the earliest practicable date.
B. The city clerk gives written notice of the appeal to:
1. the appellant;
2. the appellant’s attorney or other agent as identified in the appeal application;
3. all parties of record;
4. the division of public works and utilities; and
5. the hearing examiner at least ten days prior to the date set for the appeal.
[Ord. C32762; Passed: 12/11/2000]
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