Chapter 14.15.040 — ADMINISTRATION (§ 14.15.040.010 – § 14.15.040.020)

The following procedures are established relative to the administration of benefit districts: A.

Value Adjustment Process. If the benefit district was approved by the City Council with a specific provision to allow a value adjustment to occur to the initial cost of installing the improvements, then the City Engineer shall make the adjustments as follows:

1.

On the first January 1st following the formation of a benefit district, the City shall increase the costs of the improvements by a dollar amount equivalent to the result of multiplying the original cost amount(s) in the benefit district by the interest rate of the one year U.S. Treasury bill. The percentage of increase for the first adjustment will be prorated based on the number of months since the approval of the benefit district. These new amounts will be effective until January 1st of the next year and will be the new basis of costs for calculating the value adjustment for the following year;

2.

On each January 1st following the first adjustment noted in subsection A.(1) of this section, the City shall increase the costs of the improvements by a dollar amount equivalent to the result of multiplying the current cost amount(s) in the benefit district by the interest rate of the one year U.S. Treasury bill. These new amounts will be effective until January 1st of the next year and will be the new basis of costs for calculating the value adjustment for the following year; and

3.

Other than the adjustments noted in subsections A.(1) and (2) of this section, no other adjustments shall be made during the year.

B.

Payments to the Benefit District. Each benefit district shall establish criteria for when the benefit district charges are due for each of the properties. That criteria will either be in the resolution establishing the district or included within the Engineer's Report. In the absence of any criteria in those two documents, the payment will be due for a particular property upon the recording of a parcel map or final map, or the obtaining of a building permit for a new use or a substantial increase to an existing, nonresidential use. In addition to the payment listed in the Engineer's Report, properties in the benefit district will pay to the City an administrative fee as established by resolution of the City Council.

C.

Changes to the Beneficiary. The name and address of the beneficiary of the benefit district shall be set forth in the Engineer's Report. Until the City Engineer has received and acknowledged a written notice from the beneficiary set forth in the Engineer's Report, the City will not recognize any change of beneficiary, regardless of subsequent changes of ownership of land. If the beneficiary is changed, it shall be changed to a single person or entity.

D.

Payment to the Beneficiary.

1.

In the case of a benefit district being formed prior to the construction of the eligible improvements, no payment to a beneficiary will be made by the City until all public improvements have been constructed and accepted by the City. In such case, any fees collected will be held by the City until the acceptance of the improvements. Interest, equivalent to the rate of interest earned by the City on its invested pooled cash, will be paid on the fees thus held, said interest commencing with the month the fees are deposited with the City; and

2.

Except as noted above, upon receiving payments from property owners in the benefit district, those payments shall be put by the City into a special account and shall be paid to the beneficiary as soon as reasonable. No interest will be included from the date collected to the date paid unless payment is not made within six months from the date of deposit with the City. If interest is paid, the interest rate shall be equivalent to the rate on the one year U.S. Treasury bill as determined in subsection A of this section and shall commence on the one hundred eighty-first day after the fees have been deposited with the City. E.

Term of District.

1.

Unless for unusual reasons specifically provided for by the City Council when the benefit district was initially approved, a benefit district will expire on the tenth anniversary of the approval of the district by the City Council. Such expiration shall be automatic and not require any action on the part of the City. At that

time, the City will cease collecting the fees, and will forward any remaining fees at that date to the beneficiary; and

A developer initiated benefit district shall also expire if the improvements for which the district was formed are not commenced within two years of the date of the formation of the district or if the improvements are not completed within two years from commencement of construction.

(Ord. 1972, Repealed and Replaced, 02/22/2022)

The City will continue collecting payments for benefit districts formed prior to the effective date of this chapter until such a time as the City Council authorizes their termination. Any payments collected will be in accordance with the terms of those districts. In addition, the City will collect the administrative fee noted in Section 14.15.040.010.B.

(Ord. 1972, Repealed and Replaced, 02/22/2022)