Ordinance No. 84-60 CITY OF TIGARD OREGON
ORDINANCE N0. 84
AN ORDINANCE ESTABLISHING BANCROFT BOND PROCEDURES; AUTHORIZING
THE ISSUANCE OF BANCROFT BONDS; REPEALING 13.04.085; AND DECLARING
AN EMERGENCY.
WHEREAS, the Charter provides the City shall have all powers
which the state expressly or impliedly grants to municipalities
as though the Charter enumerated them;
WHEREAS, state law, ORS 223. 205 and 223.210 to 222.295,
provides for Bancroft bonding and ORS 223.205(3) provides thut
jurisuictions may adopt their own procedures for Bancroft bonding;
-- WHEREAS, state planning laws and administrative rules regi:ire
land use planning and that the comprehensive plans be implemented
by public improvements;
WHEREAS, public improvements are vital to jobs and economic
growth and may be required to solve problems which affect the
public health, safety or welfare;
WHEREAS, the Local Improvement District is a means of making
public improvements and assessing the cost to benefited properties;
WHEREAS, Bancroft bonding allow7 assessed property owners to
make installment payments and is a service to the property owners
because they may not have access to the money otherwise. It is
also a benefit to the general public because they are not required
to finance services from which they do not derive a benefit;
WHEREAS, Bancroft bonds are general obligation bonds which are
backed by the property owners' property and are a first lien with
the highest priority and which are backed by the full faith and
credit of isle a.t and
ORDINANCE NO. 94-
Page 1
WHEREAS, this Ordinance provides for Bancroft bonding and
authorizes the Finance Director to sell Bancroft bonds on a
continuous basis whenever the City receives qualifying applications
Of $25;OOn_D0 or more;
NOW, THEREFORE, the City of Tigard ordains as follows:
Section 1: Definitions
(a) "Improvement" shall have the meaning given in
TMC 13. 04.010.
Section 2: Right of Property Owners to Apply for Installment
Payment of Assessment
(a) Whenever the Council has proceeded to cause any
improvement to be consti uutcu vi I(tau� ail i.ii.l t Lit
corporate limits, and has assessed the costs of such
improvement to the property benefited, the owner of
any property so assessed for such improvement in the
sum of $500 or more, at any time within 10 days after
,z notice of such assessment is first published, may file
with the Finance Director a written application to pay-
(1) The whole of the assessment in installments; or
(2) If part of the assessment has been paid, the
unpaid balance of the assessment in installments.
(b) A. the option of the City, written applications
may be filed after 10 days after notice of assessment
is first published.
Section 3. Right of Educational, Reli ious, Fraternal or Charitable
Organizations and Public Corporations to Bond the
Assessment. Any educational, religious, fraternal or
charitable organization or public corporation owning
ORD111ANCE NO.
.Page 2,
property assessed for its proportionate share of the
'a.
cost of constructing an improvement as defined in
Section 1 shall have the same right to bond the
assessment and, having bonded the assessraent, shall
be subject to the same duties and liabilities as a
natural person bonding an assessment. however, the
limitations on the amount of an assessment that may be
bonded do not apply to an educational, religious,
fraternal or charitable organization or public corpora-
tion; and such organizations and corporations shall be
,t
permitted to bond to the .full extent of such assessments.
Section 4: Contents of .application to Pay in Installments;
Computation of Installments.
(a) The written application of the applicant and
property owner to pay an assessment arising out of a
local improvement shall state the following:
(1) .The applicant and property owner does thereby
waive all irregularities or defects, jurisdictional or
otherwise, in the proceedings to cause said improvements
to be constructed or made for which the assessment is
levied and in the apportionment of the costs thereof;
(2) T.ae application shall provide that the applicant
and property owner agree to gay an assessment in equal
semi-annual installments over a period not to exceed
thirty years as the city council may provide, with the
interest rate maximum to be established by the council
at the time the assessment ordinance is adopted, which
shall include an amount sufficient to pay a proportionate
ORDINANCE NO. 6
Page
part of the costs of administering the bond assessment
program and issuing the bonds and including, but not
limited to legal, printing and consultant fees. The
rate shall be adjusted if and when Bancroft bonds are
sold so that the interest rate on the application does
not exceed the net effective interest rate on the bonds
Plus two percent to defray the City's administrative
expenses. Notice of the rate adjustment shall be given
by mail to the affected applicant and property owner.
(3) A statement, by lots or blocks, or other
cont'aniP__nt. description,1 tion, of the property of iiae applicant
assessed for such improvement.
Section 5: Applications; When Accepted and Refused. No applica-
tion as provided by Section 4 shall be received and
filed if the amount remaining unpaid upon such assess-
ment together with the unpaid balance of any previous
assessments for improvements against the same property
,t equals or exceeds double the assessed valuation of the
y
1 property, as shown by the last county tax roll.
Section 6: Record of Application to be"Kept. The Finance Director
shall:
(a) Keep all applications filed under Section 2 in
convenient form for examination. The applications
received for each improvement shall be separate.
(b) Enter in a book kept .for that purpose, under
separate headings for each improvement, the date of
filing of each application, the name of the applicant,
a description of the p;.operty and the amount of the
assessment, as shown in the application.
ORDINANCE 140. 84-_,��
Page 4
777
71 71
Section 7: Bond Lien Docket; Interest; Priority. After expiration
of the time for filing application under Section 2, the
Finance Director shall enter in a docket kept for that
purpose, under separate headings for each street, sewer,
water main, or off-street motor vehicle parking facility,
by name or number, a description of each lot or parcel
of land or other property against which the assessment
is made, or which bears or is chargeable for the cost
of the improvement, with the name of the owner and the
amount of the unpaid assessment. This docket shall
ystand thereafter as a lien docket as for taxes assessed
F
and levied in favor of the city, and for the amounts of
fi
such unpaid assessments therein docketed, with interest
on the unpaid assessments at the rate determined by the
t�
4. council, against each lot or parcel of land or other
property, until the assessments and interest are paid
in the manner provided in Sections 1 to 21 of this
r
Ordinance. All unpaid assessments and interest are a
Y
Tien on each lot or parcel of land or other property,
respectively, in favor of the city, and such liens
shall have priority over all other liens and encumbrances
whatsoever.
Section 8: Authority to Issue Bonds.
(a) The Finance Director is and shall be authorized
and directed to issue improvement bonds in the manner
provided by Sections 1 to 21 upon the receipt of
eligible applications which total $25,000.00 or more.
ORDI14ANCE NO.. 84-
Page 5
(b) This authorization shall be effective on the
effective date of this ordinance and it shall remain
in effect until repealed by ordinance and the amount issued
annpn►ally2is limited only by the debt limitation provision, contained in
`fic� �Ke terms of the improvement bond sale shall be
as provided by Council acting in their administrative
capacity and memorialized by resolution.
Section 9. Issuance of Bonds; Limitation. Subject to the provi-
sions of Section 8, when the lien docket is made up as
provided by Section 7, as to assessments for any
improvement, the Finance Director shall cause bonds
to be issued in convenient denominations, not exceeding
$5,000.00 each, and in all equal to the total amount --
of unpaid assessments for improvements, and for which
applications to pay under Sections 1 to 21 of this
ordinance have been filed, as shown by the bond lien
docket. In lieu thereof, the Finance Director, on
behalf of the City, may cause a bond to be issued which
is equal to the total amount of unpaid assessments for
improvements and for which applications to pay under
Sections 1 to 21 of this ordinance have been filed, as
shown by the bond lien docket. Such bond may be
converted to bonds in denominations as specified by the
purchaser. Bonds issued for any off-street motor
vehicle parking facility, where the assessments levied
run for more than 10 years but not more than 30 years,
shall be issued separately and shall not include
assessments levied for other improvements.
QF.DIIIANCE No. 84- 40
Page 6
Section 10: Form of Bonds; Maturity Dates; Payment of Principal
_r
and Interest. The bonds shall, by their terms, be the
general obligations of the City, be in serial form with
definite maturity dates to be determined by the council,
and shall mature in annual or semiannual installments,
as provided by Section 8 (c) . Should the council so
elect:, such portion of the particular issue of bonds as
matures after one year from issue date may be made
subject to call and redemption on such interest dates
on or after the first year from issue date, as the
council shall designate. The first installment of
k�
pri1-1vipal of each issue of such bonds shall become due
and payable not later than two years, from the date of
issue, and the last installment thereof not later than
30 years from the date of the first installment payment
on the principal amount.
Section 11: Installments to Permit Annual flax Levy for Retirement;
Fractional Bonds; Inclusion in City Budget. The
installments of principal of the bonds shall be equal
or substantially equal in amount, or -the combined
annual installments of: principal of and interest on
the bonds shall be, as nearly as practicable, in such
sums as will permit a substantially uniform annual tax
'. levy for the retirement of the principal and the payment
of the interest on the bonds as they respectively become
due. Fractional bonds is denominations of less than
�" $500comprising part of an issue shall be numbered with
the number land shall be included in the amount of the
ORDINANCE NO. 84-
M; Page 7
first installment of maturing bonds. The interest on
the bonds and the amounts of such installments of
maturing bonds shall be included in the annual budget
of the City, and there shall be deducted in the budget
such an amount as the council conservatively estimates
will be received from payments of the principal and
interest on installments of assessments appertaining to
the particular bond issue, and from receipts from sales
and rentals of property acquired by the City pursuant
to such assessments, during the year for which the levy
is made.
4
Section 12: Interest Rate; Notice of Bond Call. The bonds shall be
— payable in lawful money of the United States, and bear
interest payable semiannually at a rate not to exceed
the percent per annum established pursuant to ORS
283.515 to 288.550. Notice stating that certain bonds
f„ are -to be called for redemption upon optional payment
dates, and that the interest thereon shall cease upon
I
the interest payment date upon which the bonds are
called, shall be published in a newspaper published and
generally circulated within the boundaries of the City.
if there is no such newspaper, then in a newspaper having
a aereral circulation within its boundaries, at least
30 days prior to that date. After that date, interest
upon the bonds designated in the notice shall cease.
Section 13: Execution, Authentication and Registration of_ Bonds.
The bonds, before issuance, shall be executed with
the facsimile signatures of the Mayor and Finance
ORDI14ANCE NO. 84a10
Page
Director; and shall be registered consecutively, by
number and denomination of each, in a book to be kept
by the Registrar/Paying Agent. Each of the bonds shall
have distinctly and plainly inscribed or printed on the
face thereof the registered number of the bond and the
words "Improvement Bond," with the name of the City.
Section 14: Sale of Bonds; Disposition of Proceeds from Bond Sales.
The bonds shall be advertised for sale and sold in the
manner prescribed in ORS 287.014 to 287.026. The
proceeds thereof shall be paid by the purchaser to the
Finance Director and the ;gar value thereof credited to
the respective improvement fund for which the bonds
are issued. The accrued interest and premium accruing
from the sale of the bonds shall be credited to the
` general fund of the City, the fund from which interest
is paid on improvement warrants, or to the improvement
bond sinking fund, as the council shall direct.
Section 15: Payment of Installments; Due Dates. There shall be due
and payable semiannually for not to exceed 30 years, as
the council may provide, to the Finance Director by the
owner of each lot or parcel of land assessed for any
improvement, whose application to pay the cost of such
improvement by installments has been filed as provided
in Section 2 to Section 5, such percentage of such
cost assessed against the property of such owner, as
may be provided by the council, as appears by the bond
lien docket described in Section 7, with the amount of
one-half of one year's 'interest at the rate per annum
ORDINANCE NO.
Page 9 _
determined by the council under Section $ (c) . The first
payment shall be due and payable on the date determined
by the Finance Director and subsequent payments at the
expiration of each semiannual period thereafter.
Section 16: Procedure for Collection on Default. Should the owner
neglect or refuse to pay installments under Section 15
as they become due and payable for a period of one
year, then the council :nay, by reason of such neglect
or refusal to pay the installments, and while the
neglect and refusal to pay continues, pass a resolution
giving the name of the owner then in default in the
payment of the sums due, either principal or interest,
together with a description of the property upon which
the sums are owning and declaring the whole sum, both
( principal and interest, due and payable at once. 1t
s
may then proceed at once to collect all unpaid install-
ments and to enforce collection thereof, with all
penalties added thereto, in the same manner as set forth.
i Section 17: Notice to Pay; Receipts and Entries on Lien Docket.
The Finance Director shall, when installments and
interest on any assessment in the bond lien docket are
due, make the proper extensions of such installments
and interest on the bond lien docket. The Finance
Director shall notify the property owner that the
installments are due and payable, but a failure of any
owner to receive such notice shall not prevent collec-
tion of the installment as provided in Section 16.
Y
ORDINANCE;NO. 84 &
Page 10
The Finance Director shall issue a receipt to the
person paying the installments and interest, and shall
file duplicates of the receipts and shall make the
proper entires on the bond lien docket showing the
amount of each payment and the date thereof.
Section 18: Right of Owner to Prepay Balance and Discharge Lien.
At any time after issuance of the bonds, any owner at
the time being of any property against which the assess-
ment is made and lien docketed may pay into the City
treasury the whole amount of assessment for which such
lien is docketed, together with the full amount of
interest and costs accrued thereon to such date of
payment. Upon producing to -the Finance Director the
receipt, the Finance Director shall enter in the lien
docket opposite the entry of the lien the fact and
date of such payment and that the lien is discharged.
Section 19: Separate Funds Kept for Moneys Received; Investments
by City Authorized. The Finance Director shall account
for all funds recoived under Sections 1 to 21 of this
Ordinance and shall account for such funds separately
from other City funds. The amount of such moneys paid
on account of installments, and interest on unpaid
installments, shall be placed to the credit of a
redemption_ fund. All interest and principal due on
improvement bonds shall be paid from the redemption
fund. The amount placed to the credit of the redemption
fund shall from time to time be invested as provided
in ORS 294,035 or 294.805 to 294.895.
ORDINANCE NO. 84- 66
Page 11
Section 20: Payments Entered on Lien Docket; Lien Discharge.
Entries of payments of installments, interest and costs,
made under Sections 1 to 21 of this Ordinance, shall
be made in the lien docket as they are received, with
the date thereof, and such payments so made and
entered shall discharge the lien to the amount of such
F payment and from the date thereof.
Section 21: Limit on City Indebtedness.
(a) The City may incur indebtedness in the form of
bonds and other obligations by virture of Sections 1
to 21 of this Ordinance to an amount which, exclusive
of indebtedness for municipal utilities but inclusive
of all. other indebtedness of the City, shall not exceed
.09 of the latest true cash valuation of the City.
Regardless of the above limitation, the City may issue
bonds under Sections 1 to 21 of this Ordinance in an
amount not exceeding .03 of the latest true cash
valuation of the City.
_(b) "Municipal utilities," as used in subsection (a)
of this section, includes city-operated gas, water,
lighting and sewage disposal plants, and sanitary or
storm sewers, railroads, hospitals, infirmaries, parking
facilities and other like municipal projects, that for
a period of one year next preceding the date of
issuance of the improvement bonds or warrants, had
been wholly self--supporting from fees and service
charges, without the necessity of a tax levy therefor.
x
For the purposes of this section, an unqualified
ORDINANCE NO. 84
Page 12 -
T
certificate from the Division of Audits of the office
of the Secretary of State that a municipal utility
has been thus self-supporting for the prescribed
period shall be proof thereof.
(c) The indebtedness incurred by virtue of Sections
1 to 21 of this Ordinance shall be determined by
deducting from the sum total of outstanding improvement
bonds and improvement warrants issued pursuant to the
provisions of Sections 1 to 21 of this Ordinance, and
of any outstanding bonds issued to fund those warrants
and of outstanding bonds issued to refund any of said
bonds, the aggregate of sinking funds or other funds
applicable to the payment thereof, less the aggregate
of overdrafts, if any, in the improvement bond
interest fund.
Section 22: The provisions of 13.04.085 are hereby repealed.
Section 23: The sections of this ordinance are severable. If any
section, sentence, clause or phrase of this ordinance
is adjudged to be invalid by a court of competent
jurisdiction, that decision shall not affect the
validity of the remaining portions of this ordinance.
Section 24; This Ordinance is necessary to protect the general
health, safety and welfare of the people of the City
of Tigard because public improvements are required to
implement the state mandated land use planning require-
ments, to provide for economic growth and jobs, and
to solve health and safety problems which arise, and
ORDINANCE NO. 84��
Page 1.
Bancroft bonding allows benefited property owners to
make installment payments. Without Bancroft bonding,
property owners will be required to pay in full, or
the nonbenefited property owners may be required to
finance the services. An emergency is hereby declared to
exist and this ordinance will be effective upon its passage & approval.
PASSED: By the Council by r vote of all Council
members present, after being read by number and title
only, this day of �� - 1984 .
City Recorder - City of Tigard
APPROVED: By the Mayor this ,?2 day of , 1984.
o ' - City of Tigard
ORD114ANCE NO. ;84-
Page 14