14.02.200 Alternative financing methods.
A. As an alternative to financing street and/or utility improvements under this chapter solely by developers, the city may join in the financing of the improvements and may be reimbursed in the same manner as developers who participate in funding the improvements. If the city elects to join in the financing of street or utility system improvements under this chapter, it shall have the same rights to reimbursement as developers who make contributions as authorized under this chapter and shall be entitled to a pro rata share of the reimbursement based on the respective contribution of the developer and the city.
B. As an alternative to financing street and/or utility system improvements under this chapter in whole or in part by developers, the city may create an assessment reimbursement area on its own initiative, without the participation of a private developer, finance all of the costs of the street and/or utility system improvements, and become the sole beneficiary of the reimbursements that are contributed. The city may establish an assessment reimbursement area under this subsection only in locations where the city’s ordinances require utility or street improvements to be constructed as a prerequisite to further property development or redevelopment. The process shall be as follows:
1. The public works department shall formulate the boundaries of a preliminary assessment reimbursement area and determine the amount of the preliminary assessment applicable to each parcel located within the preliminary assessment reimbursement area in accordance with BMC 14.02.060, subject to the following limitations:
a. The assessment for water and sewer improvements shall be no greater than a property’s pro rata share of costs associated with construction of the water or sewer facilities required to meet water and sewer service and fire suppression standards. No city costs for any portion of the utility system improvements that only benefit property outside of the assessment reimbursement area may be reimbursed.
b. The city may be reimbursed only for the costs of street improvements that benefit that portion of the public who will use the developments within the assessment reimbursement area. No city costs for improvements that benefit the general public may be reimbursed.
2. The public works department shall provide notice of its preliminary determination to all owners of record of property located within the preliminary assessment reimbursement area in accordance with BMC 14.02.070.
3. Owners of record of property located within the preliminary assessment reimbursement area may contest the public works department’s preliminary determinations in accordance with BMC 14.02.070.
4. Based upon staff’s preliminary determination, if no hearing is requested, or based upon city council’s determination, if a hearing is requested, the public works department shall prepare and record a notice of assessment against each property in the county auditor’s office. Upon recording of the notice, the assessment shall be binding upon the property and shall run with the land in perpetuity until paid. The term limits contained in BMC 14.02.140 shall not apply to latecomer assessments established under this subsection.
5. Assessments shall be paid to the city as follows:
a. Assessments for street improvements shall be paid prior to the development or redevelopment of property if at the time of development or redevelopment the owner is not required to install similar street improvements because they were already installed by the city.
b. Assessments for utility system improvements shall be paid prior to connection to or use of the utility system improvements.
6. Upon receipt of payment in full, the city shall record a notice of release of assessments in the county auditor’s office. Recording costs shall be paid in advance by the property owner.
7. Assessments may be determined and recorded at any time prior to or after completion of construction of the improvements. If the recorded assessment amounts were determined prior to completion of construction based upon estimated costs, the city shall subsequently prepare revised notices of assessment based upon actual costs following completion of construction; provided, that assessments shall not be increased by more than 10 percent. The revised notices shall be sent by certified mail to each owner of record of property within the assessment reimbursement area and recorded in the county auditor’s office. [Ord. 2016-09-034 § 1; Ord. 2014-06-033; Ord. 2004-01-003 § 11. Formerly 14.02.170].