(A) Generally. An advance financed reimbursement is imposed on all benefitting property owners at the time as the owners apply for access or connection to the advance financed public improvement or apply for building permits for projects that utilize an advance financed public improvement.
(B) Rates. Benefitting property owners shall pay advance financed reimbursement as calculated by the use of any method of appointing the actual cost, or estimated actual cost, to be assessed is just and reasonable among the properties determined to be specifically benefitted and consistent with the State Constitution and state laws.
(1) If the advance financed public improvement was completed by the city, the reimbursement to the city shall be the total cost of the improvement increased by 7% annual simple interest (or the other interest rate as the Council may, from time to time, set by resolution) including the use of:
(a) Any just and reasonable method of determining the extent of the advanced finance district boundaries consistent with the benefits derived;
(b) The use of any method of appointing the actual cost among the properties to be specifically benefitted which is just and reasonable; and
(c) If, in the opinion of the Council, there is a general public benefit which will result from the public improvement, or when the Council otherwise believes it to be just and reasonable, the city may contribute funds towards the local improvement.
(2) If the advance financed public improvement was completed without the issuance of debt by the city, the reimbursement to the city shall be up to the total cost of the improvement increased by the interest rate, as set forth above, multiplied by a percentage of front footage owned by benefitting property owners of the total front footage of the advance financed public improvement.
(3) Advanced financing reimbursement for odd-shaped lots shall be individually established and consistent with the benefit received by the lots in the area. 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 benefitting 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.
(2) No permit for connection shall be issued until the advance financed reimbursement is paid in full or otherwise processed in accordance with this chapter. Whenever the full and correct advance financed reimbursement is due and has not been paid and collected for any reason, the Manager 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 benefitting property owners. The Council, by motion, shall then set a public hearing and shall direct the Manager to give notice of the hearing to each of those benefitting property owners, together with a copy of the Manager’s report concerning the unpaid reimbursement, either in person or by certified mail. At the public hearing, the Council may accept, reject, or modify the Manager’s report; and if it finds that any reimbursement is unpaid and uncollected, the Council, by motion, may direct the city officer to record the unpaid and uncollected reimbursement in the County Record of Liens. Upon completion of the recording, 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 benefitting property owners. The lien shall be enforced in the manner provided by ORS Chapter 223.
(D) Payment installments. Whenever an advance financed reimbursement is due and collectable, the benefitting property owner may, as an option to paying the charge in full, apply for payment installments in the manner provided for in ORS 223.205 through 223.295 using forms provided at the city office.
(E) Disposition of advance financed reimbursements. Developers shall receive advance financed reimbursements collected by the city pertaining to their respective advance financed public improvements. The reimbursement shall be delivered to the developer for a period of 20 years from the date of the applicable advance financing agreement has been executed. The reimbursement will be made by the city within 90 days of receipt of the advance financed reimbursements. Advance financed reimbursements not paid the developer under the terms of this chapter shall be retained by the city to be used for related system improvements as authorized from time to time by the Council.
(F) Recording. All advance financed resolutions shall be recorded by the city in the deed records of the county. The resolutions shall identify full legal descriptions of the benefitting properties. Failure to make the recordings shall not affect the legality of an advance financing resolution or agreement.
(G) Public improvements. Public improvements installed pursuant to advance financing agreements shall become and remain the sole property of the city pursuant to the advance financing agreements and advance financed reimbursement, not paid to the developer during the ten-year period, as set forth in division (F) above, shall be paid to the city to be used for related system improvements as authorized from time to time by the Council.
(H) Multiple public improvements. More than one public improvement may be the subject of an advanced financing agreement or resolution.
(Ord. 334-99, passed 12-14-1998)