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Home My WebLink AboutReso 96-078 - Adopting Policy No.601: Assessment Dist Policies ! • RESOLUTION NO. 96-� A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING ADOPTING POLICY NO. 601: ASSESSMENT DISTRICT POLICIES. WHEREAS, the City Council of the City of Redding is charged with the responsibility of establishing municipal policies to guide the various functions of the City and, where necessary, to establish procedures by which functions are performed; and WHEREAS, the City, from time-to-time, receives requests to form assessment districts pursuant to the Municipal Improvement Act of 1913; and WHEREAS, the purpose is to access financing under the 1915 Bond Act to fund public improvements needed in a developed locale, or to provide basic public improvements to bare land to facilitate development; and WHEREAS, the City Council wishes to establish a formal policy establishing the parameters for future assessment district formations, projects and bond issues; NOW, THEREFORE, IT IS RESOLVED that the City Council adopts Council Policy No. 601 entitled Assessment District Policies, to be incorporated in the Council Policy Manual. A copy of the Policy is attached hereto and made a part hereof. I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at a regular meeting of the City Council on the 7th day of Mav , 1996, by the following vote: AYES: COUNCIL MEMBERS: P. Anderson, R. Anderson, Kehoe, Murray and McGeorge NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None ' G . DAVID . cGEO , M or � � � AT ST: F �PR D: , l/ %` ` i� � %' ,� �� G�'��l�i'� �� "``' ` �- � CONNIE STROHMAY , City Clerk W. LEONARD V�'' GATE, City Attorney ' � . � � CITY OF RED�ING CALIFORNIA . , Councii Policy ` SUBJECT Resolution Policy Effective Number Number Date Page ASSESSMENT DISTRICT POLICIES 96— ��_ / BACKGROUND The City Council, from time to time, either receives requests to form or initiates the formation of assessment districts pursuant to the Municipal Improvement Act of 1913. The purpose is to access financing under the 1915 Bond Act to fund public improvements needed in a developed locale or to provide basic public improvements to bare land to facilitate development. PURPOSE To establish parameters for assessment district formation, projects, and bond issues . POLICY � It is the policy of the City Council of the City of Redding to consider formation of assessment districts and to issue related 1915 Act bonds within the following parameters: 1 . The petition to form an assessment district must be approved by property owners of at least 60$ of the land area within the district unless the district is an acquisition assessment district, in which case the petition must be approved by 100$ of property owners within the district. 2 . All property within an assessment district must be within the boundaries of the City of Redding except that, when it can be demonstrated that a benefit to the City results from the inclusion of property outside the boundaries of the City, the City Council may consider inclusion of such property in an assessment district. 3 . Improvements funded through assessment district bond issuances shall be for City-owned improvements. Improvements that will be owned by private utility companies, special districts , or other governmental agencies do not qualify for assessment district financing. 4 . Assessment liens/debt already in existence within the proposed district shall be paid off through the new assessment debt issuance. 5 . It is the preference of the City that the value to lien ratio of an assessment district shall be at least 6: 1 . If a value F-0091-7/93 . � . CITY OF RED /NG, CAL/FORNIA Council Policy � SUBJECT Resolution Policy Effective Number Number Date Page ASSESSMENT DISTRICT POLICIES 96— �� to lien ratio lower than 4 : 1 is indicated, staff shall seek special approval of Council before continuing with district formation/debt issuance. 6. The assessment district engineer shall be independent of the developer' s design engineer. The City engineer, a member of the City engineer' s staff, or an independent private consultant engineer engaged by the City may act as the assessment district engineer. The assessment district engineer shall prepare the Engineer' s Report including the recommendation for the spread of assessments . 7. The City shall engage an independent appraiser to determine the value of the proposed assessment district property when a formal independent appraisal is required. The fee for assessment district formation services shall be increased by the cost, estimated on a district by district case, of obtaining this appraisal. Such fee shall be paid at the time the request for the formation of an assessment district is submitted and will not be refundable after the appraisal is ordered. 8. The City shall impose fees in accordance with the Streets and Highways Code of California to cover the cost of administra- tive services provided by the City to assessment districts: Typically assessment districts that contain primarily undeveloped land require more administrative services than districts in a fully developed locale. The fees shall be developed to provide for the differing levels of service. 9 . The City wishes to do business with individuals and/or entities that are honorable and trustworthy. Therefore, the City will not proceed with the formation of an assessment district if the individual or a principal of an entity making such a request has defaulted on or been significantly delinquent in paying other City assessments or fees. 10. The reserve fund of an assessment district shall be estab- lished at the maximum amount allowable under the prevailing tax law (currently 10� maximum) , except that when 80$ or more of the land within the district has been "built-out" a lower reserve fund may be established, but in no circumstance lower than 5$ of the bond issue amount. 11 . When a debt service payment is due and funds are not available within the accounts of the assessment district to provide for such a payment and the City is not secondarily F-oos,-�� . . • ' . CITY OF RED ING, CALIFORN/A Council Policy � SUBJECT Resolution Policy Effective Number Number Date Page ASSESSMENT DISTRICT POLICIES 96— _��_ 3 liable under the bond issue documents, the Council shall consider, on a case by case basis, whether or not it is in the best interest of the City to advance funds to make such a payment and, when an advance is made, which City fund/department shall make the advance. 12 . The only recourse bond holders and the City have ror non-payment of assessments is to foreclose on and sell the property securing the assessment. The proceeds of such a sale are then used to pay the required assessments. If a property owner wishes to transfer title to the property to the City in lieu of foreclosure, since such action would short-cut the foreclosure process, the City may, depending on the advice of counsel, accept title to the property through this process. ADMINISTR.ATION1RESPONSIBILITY Pursuant to the 1915 Bond Act, the City Treasurer is responsible for bond issuance and administration. Administration responsibil- ities include, but are not limited to, the following: providing the County Auditor' s office with timely assessment information for inclusion on the property tax roll; monitoring the payment of assessments; working with the City Attorney' s office to initiate foreclosure on parcels with delinquent assessments; processing lien payoff requests, payments, and lien release; monitoring bond reserve balances to insure the reserve does not exceed the maximum allowable amount; calling bonds when funds are available for that purpose; obtaining rebate calculations in accordance with applicable tax law; and investing idle district funds . The Finance Division performs bookkeeping services for assessment districts . Such services include: maintaining the district ' s general and subsidiary ledgers; processing requests for payment for construction of district improvements; and processing debt service payments . The Finance Division also assists in bond issuance and is responsible for providing for bond holder payments through the paying agent. The Public Works Department takes the lead in assessment district formation and is responsible for: the boundary map; the improvements to be constructed; design of the improvements; property appraisal; the engineer ' s report; the method of assessment; and the assignment of assessments to parcels . In addition, Public Works determines the method of segregation of F-0091-7/93 . , • _ ED�NG CALIFORN/A CITY OF R , Council Policy SUBJECT Resolution Policy Effective Number Number Date Page ASSESSMENT DISTRICT POLICIES 96— �_�_ � assessments for lot splits . A copy of "Assessment District Formation Procedures" developed by the Public Works Department is attached. The City Clerk' s office maintains the official assessment district records and performs the following additional services for assessment districts : files and records documents; transmits documents to involved agencies and parties; processes resolutions; and prepares, publishes and distributes public hearing notices . The City Attorney' s office, at the request of the City Treasurer, processes foreclosures on properties with delinquent assessments . F-0091 -7/93