A. Imposed. An advance financed reim- bursement is imposed on all benefiting property owners. It shall be due and payable at the time that the property owners apply for connection to the advance financed public improvement, or apply for building permits for projects that utilize an advance financed public improvement. In the case of property located outside of the city limits, but within the advance financed district, the property owner may pay off the assessed reimbursement in full, including any accrued interest thereon at any time prior to the time of actual connection, to stop interest charges from further accruing. The property owner is not required to pay the reimbursement prior to the time the owner connects to or utilizes the advance financed public improvements, but may do so voluntarily at his or her discretion. This prepayment does not guarantee annexation of the property at a particular time, or approval of a particular development.
(Am. Ord. 1005, passed 8-19-1998)
B. Rates.
1. Benefiting property owners shall pay advance financed reimbursement calculated as follows:
a. If the advance financed public improvement was completed by a private developer, the reimbursement shall be the total actual cost of the improvement, increased by 7% annual simple interest, or other interest rate as the Council may, from time to time, set by resolution, multiplied by the fraction of area owned by the benefiting property owner of the total area of all the benefiting property owners;
b. If the advance financed public improvement was completed by a public agency, the reimbursement to the public agency shall be the total cost of the improvement increased by the same interest rate, including costs, as the public agency pays to finance construction, multiplied by the fraction of area owned by the benefiting property owner of the total area of all the benefiting property owners; or
c. If the advance financed public improvement was completed without the issuance of debt by the public agency, the reimbursement to the public agency shall be to the total cost of the improvement increased by the current interest rate private developers receive, as set forth above, multiplied by the fraction of area owned by the benefiting property owner of the total area of all the benefiting property owners.
2. If inequities are created through the strict implementation of the above formulas, the Council may modify its impact on a case-by-case basis.
C. Collection.
1. The advance financed reimbursement is immediately due and payable by benefiting property owners upon their application for connection to an advance financed public improvement or any building permit, the result of which will utilize any advance financed public improvement. If connection is made or construction commenced without the above-mentioned permits, then the advance financed reimbursement is immediately due and payable upon the earliest date that the permit was required. No permit for connection or construction shall be issued until the advance financed reimbursement is paid in full or otherwise processed in accordance with the terms of division C.2. of this section. Whenever the full and correct advance financed reimbursement is due and has not been paid and collected for any reason, the City Administrator shall report to the Council the amount of the uncollected reimbursement, the description of the real property to which the reimbursement is attributable, the date upon which the reimbursement was due and the name or names of the benefiting property owners. The City Council, by motion, shall then set a public hearing and shall direct the City Administrator to give notice of the hearing to each of those benefiting property owners, together with a copy of the City Administrator’s report concerning the unpaid reimbursement, either in person or by certified mail. Upon public hearing, the Council may accept, reject or modify the City Administrator’s report; and if it finds that any reimbursement is unpaid and uncollected, the Council, by motion, may direct the City Recorder to docket the unpaid and uncollected reimbursement in the city record of liens. Upon completion of the docketing, the city shall have a lien against the described land for the full amount of the unpaid advance financed reimbursement, interest and the city’s actual cost of serving notice upon the benefiting property owners. The lien shall be enforced in the manner provided by O.R.S. Chapter 223.
2. Whenever an advance financed reimbursement is due and collectable, the benefiting property owner may apply, upon forms provided by the City Administrator, for the voluntary imposition of a lien upon a parcel for the full amount of the advance financed reimbursement and the payment of that lien in 20 equal semi-annual installments including interest at the current legal rate. The applicant must provide a certificate from a licensed title insurance company showing the identity and amount of all other liens already of record against the property and a certificate from the County Tax Assessor showing the assessed valuation of the property. The city shall not permit a lien greater than the assessed value less the combined total principal balance and accrued interest on all prior liens. Upon receipt of these certificates and application, the City Administrator shall compute the amount of the advance financed reimbursement, the date upon which the reimbursement is due, the name or names of the applicant/owners and the description of the property; and upon receiving that report, the City Recorder shall docket the lien in the city docket of liens. From the time that docketing is completed, the city shall have a lien upon that land for the amount of the charge and interest upon that charge at the rate established by the Council for advance financed public improvements. That lien shall be enforced in the manner provided in O.R.S. Chapter 223.