If the city has proceeded to cause any local improvement to be constructed or made within the corporate limits of the city and has determined the final assessment for the local improvement against the property benefited thereby, or liable therefor, according to applicable law, the city shall cause notice of the final assessment to be published. The notice shall identify the local improvement for which the assessment is to be made, each lot to be assessed and the final assessment for each lot. In addition, the notice shall state that the owner of any property to be assessed shall have the right to make application to the city for payment of the final assessment in installments as provided in this subchapter. A copy of the notice shall be mailed or personally delivered to the owner of each lot to be assessed.
(A) The owner of any property to be assessed, at any time within ten days after notice of final or estimated assessment is first published, may file with the Recorder a written application to pay:
(1) The whole of the final or estimated assessment installments; or
(2) If part of the final estimate has been paid, the unpaid balance of the final assessment in installments.
(B) At the option of the city, an installment application may be filed after the notice of the final assessment has been published.
(1) The installment application shall state that the applicant does thereby waive all irregularities or defects, jurisdictional or otherwise, in the proceedings to cause the local improvement district for which the final assessment is levied and in apportionment of the actual cost of the local improvement.
(2) The application shall provide that the applicant agrees to pay the final or established assessment over a period not less than ten years nor more than 30 years and according to such terms as the city may provide. The city may provide that the owner of the assessed property may elect to have the final assessment payable over a period of less than ten years and according to the terms as the city may provide.
(3) The application shall also provide that the applicant acknowledges and agrees to pay interest at the rate provided by the city on all unpaid assessments, together with the amount, determined by the city, sufficient to pay a proportionate part of the cost of administering the bond assessment program and in issuing the bonds authorized under O.R.S. 223.235, including, but not limited to, legal, printing and consultants’ fees.
(4) The application shall also contain a statement, by lots or blocks or other convenient description, of the property of the applicant assessed for the improvement.
(C) In connection with the final assessments for any local improvement, the city shall establish a procedure by which an owner of any property to be assessed may irrevocably elect in writing to have the final or estimated assessment levied for a number of years less than ten, which shall be determined by the city. The written election shall: be signed by the owner or a duly authorized representative of the owner; contain a description of the assessed property and the local improvement for which the assessment is being made; and contain a statement by the owner acknowledging that the improvement for the local improvement as described in this subchapter, that the payment of final assessment against the properties benefited by the local improvement plus interest may be spread over at least ten years and that, notwithstanding any provision of law, the owner consents to make payments over a period of less than ten years and to have the assessment levied on the benefited property accordingly.
(D) The election of this section shall be recorded in the lien docket for the local improvement to which the assessment relates. From and after the time at which the written election is so recorded, it shall be valid and binding upon all subsequent owners of the property thereof.
(E) When the lien docket is made up, as provided in O.R.S. 223.230, as to the final assessments for any local improvement, the city shall by ordinance or resolution authorize the issue of its bonds pursuant to the applicable provisions of O.R.S. 287A.050.
(F) The bond authorized to be issued under this section shall be issued in an amount equal to the unpaid balance of all final assessments for the related local improvements, including the amounts necessary to fund any debt service reserve and to pay any other financing cost associated with the bonds.
(G) If the question of the issuance of the specific bonds has been approved by the electors of the city, and the bonds are issued as general obligation bonds, the city shall each year assess, levy and collect a tax on all taxable property within its boundaries. The amount of the tax shall be sufficient to pay all principle of and interest on the bonds that are due and payable in that year and to replenish any debt service reserves required for the bonds. In computing the amount of taxes to impose, the city shall deduct from the total amount otherwise required the amount of final installment payments which are pledged to the payment of the bonds and which are due and payable in that year and shall add to this net amount the amount of reasonably anticipated delinquencies in the payments of the installments or the taxes.
(1) The taxes shall be levied in each year and returned to the county officer whose duty it is to amend the tax role within the time and manner provided in O.R.S. 310.060.
(2) The taxes shall become payable at the same time and be collected by the officer who collects county taxes and shall be turned over to the city according to law.
(3) The county officer whose duty it is to extend the county levy shall extend the levy of the city in the same manner as city taxes are extended. Property shall be subject to sale for nonpayment of the taxes levied by the city in like manner and with like effect as in the case of county and state taxes.
(H) If the question of the issuance of the specific bonds has not been approved by the electors of the city and the bonds are issued as limited tax obligation bonds, the city may, subject only to the limitations of § 11b(1), Article M of the state Constitution, calculate, assess, levy and collect tax on all taxable property within its boundaries in the manner provided in this subchapter. The amount of the tax shall be sufficient to pay all principle of and interest on such bonds which is due and payable in that year and to replenish any debt service reserves required for such bonds; provided, that if such bonds are issued as limited tax obligation bonds the amount of such tax shall not exceed the amount permitted under § 11b(1), Article M of the state Constitution.
(I) All bond issued pursuant to this section, including general obligation bonds, shall be secured by and be payable from the installments of final assessment with respect to which the bonds were issued.
(1) In the ordinance or resolution authorizing the issuance of bonds, the city may provide that all installments of final assessments be levied with respect to two or more local improvements shall secure a single issue bonds, and reserve the right to pledge, as security for any bonds thereafter issued pursuant to this section, any installments of final assessments previously pledged as security for other bonds issued pursuant to this section.
(2) (a) All bonds shall be secured by a lien on the installments of final assessments with respect to which they were issued. The lien shall be valid, binding and fully perfected from the date of issuance of the bonds. The installments of the final assessments shall be immediately subject to the lien without the physical delivery thereof, the filing of any notice or any further act.
(b) The lien shall be valid, binding and fully perfected against all persons having claims of any kind against the governmental unit or the property assessed whether in tort, contract or otherwise and irrespective of whether such persons have notice of lien.
(J) As additional security for any bonds issued under this section, including general obligation bonds, the city may pledge or mortgage, or grant security interests in, its revenues, assets and properties and otherwise secure and enter into covenants with respect to the bonds, as provided in state law.
(K) The city shall have the power, at any time and from time to time after the undertaking of a local improvement has been authorized, to borrow money and issue and sell notes for the purpose of providing interim financing for the actual cost of the improvement.
(1) Notes authorized under this division (K) may be issued in a single series for the purpose of providing interim financing for two or more local improvements.
(2) Notes authorized under this division (K) shall mature not later than one year after the date upon which the city expects to issue bonds for the purpose of providing permanent financing with respect to installment payments of the final assessments for the local improvements.
(3) Any notes authorized under this division (K) may be refunded from time to time by the issuance of additional notes or out of the proceeds of bonds issued pursuant to this section. The notes may be made payable from the proceeds of any bonds to be issued under this section to provide permanent financing from any other sources from which bonds are payable.
(4) The city may pledge the payment of bonds authorized to be issued under this section with respect to the local improvements for which the notes provide interim financing.
(L) The city may create, within the Bancroft Bond Redemption Fund maintained by the city as required by O.R.S. 223.285, separate accounts for separate issues of bonds or notes issued, as provided in O.R.S. 223.235, and may pledge any amounts deposited in the separate accounts to specific issues of bonds or notes without pledging the amounts to any other issues of such bonds or notes.
(M) The installments due and payable under an assessment contract shall be due and payable periodically as the city shall determine but shall not be due and payable over a term in excess of 30 years. Each installment is due and payable with interest as described under division (O) below.
(N) The installments and interest are payable to the city by the property owner whose application to pay the cost of the local improvement by installments has been provided in O.R.S. 223.210.
(O) The amount of each installment (percentage of the total final assessment) shall be determined by the city and shall be as appears by bond lien docket described in O.R.S. 223.230. Each installment shall be due and payable with the accrued and unpaid interest on the unpaid balance of the final assessment amount at the rate per annum determined by the city under O.R.S. 223.215.
(P) The first payment shall be due and payable on the date that the city shall determine, and subsequent payments shall be due and payable on subsequent periodic dates thereafter as shall have been determined by the city.
(Q) If the owner neglects or refuses to pay installments under O.R.S. 223.265 as they become due and payable for a period of one year, then the city may, by reason of the neglect or refusal to pay the installments, and while the neglect and refusal to pay continues, pass a resolution:
(1) Giving the name of the owner in default in the payment sum due;
(2) Stating the sum due either in principal or interest, or both, and any unpaid late payment penalties or charges;
(3) Containing a description of the property upon the sums are owing; and
(4) Declaring the whole sum, both principle and interest, due and payable at once.
(R) The city may then proceed at once to collect all unpaid installments and to enforce collection thereof with all unpaid late payment penalties, attorneys’ fees and administrative charges added thereto, in the same manner as street and sewer assessments are collected in a manner provided in O.R.S. Chapter 223.
(Prior Code, § 33.31) (Ord. 365, passed 4-14-1997)