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HomeMy WebLinkAboutORD2023-016 Amending City Code 5.20 Improvement DistrictsSponsored by: Regis Introduction: June 12, 2023 Public Hearing: June 26, 2023 Enactment: June 26, 2023 CITY OF SEWARD, ALASKA ORDINANCE 2023-016 An Ordinance of the Seward City Council, Amending Seward City Code Chapter 5.20 Improvement Districts WHEREAS, there is a need to provide a mechanism in code for the City Council to, when funds are available, provide for up to 50 percent of the costs of extending public utilities to property owner's undeveloped property in order to incentivize installation of public utilities and residential development within city boundaries. NOW, THEREFORE, THE CITY OF SEWARD ORDAINS that: Section 1. Seward City Code 5.20 is amended to read as follows (new language is in bolded italics and underlined and deleted language is stieken): Chapter 5.20. Improvement Districts 5.20.010 Authority and Intent £€LA special improvement district may be initiated either by council or by petition from property owners for any public improvements. (b) It is the intent of this chapter to permit the city, when funds are available, to pay for a portion of the costs of extending public utilities to the undeveloped property in order to incentivize installation of public utilities and property development within city boundaries. 5.20.015 Initiation. (a) Initiation by petition. Improvement districts and assessments may be initiated by petition to the council of the owners of up to one-half in value of the property to be benefitted. A petition shall be in a form prescribed by the city manager which shall include a description of the improvement] sought by the petition as well as a list of the parcel(s) to be bene rted. 'rl, al e f the petition shag be a by the o of property which will bo at to st 50 p nt fthe sti ate t „ft e improve....,ent „lit by the petition. The petition, when signed, shall be filed with the city clerk. (b) Initiation by council. The council by motion or other action may direct the city manager to make a survey and report on a proposed council initiated special improvement district. CITY OF SEWARD, ALASKA ORDINANCE 2023-016 5.20.020 Reports on necessity, cost, etc. Upon receipt by the city manager of the petition from the city clerk, or upon direction of the council, the city manager shall make a survey and report to council concerning the need for and desirable extent and estimated cost of each proposed local improvement. The report shall contain a map or legal description of the proposed district. After completion of the report, a public hearing shall be held. 5.20.025 Hearings on necessity. (a) Purpose. The hearing shall determine whether the proposed improvement district is in the public interest and necessary. Notice. (b) (1) Notice of the public hearing shall be published in a newspaper of general circulation in the city at least once a week for four consecutive weeks prior to the time fixed for the hearing, and the fourth publication shall occur at least one week prior to the hearing. The city clerk shall send a written notice by first class mail at least 15 days prior to the time of hearing to each owner of property to be assessed. (2) The notice shall include a summary of the improvement, the designation of the properties to be assessed in the special improvement district, the purpose of the public hearing and the time and place fixed for the public hearing. Mailed notices shall include a designation of the addressee's property to be assessed. Each notice shall generally inform the property owner of the manner and method of protesting or objecting to the action to be taken at the public hearing. (c) Written protests. If protests in writing are made by the owners of property who shall bear 50 percent or more of the estimated cost of the improvement, the council shall not proceed with the improvement until the protests have been reduced to less than 50 percent, except upon the approval of not less than few five members of the council. (d) Changes and revisions. After hearing all interested persons favoring or opposing the proposed improvement, the council may decrease the extent or value of the improvement, and may delete from the district properties not benefited by the improvement. 5.20.030 Resolution to proceed. After the public hearing is closed, council shall adopt or reject a resolution to proceed with the proposed improvement. The resolution to proceed shall find that the improvement is necessary and will benefit the properties to be assessed. The findings of the council are conclusive. The resolution shall require an account to be kept of all costs of the improvements and direct the proper city official to proceed with design and construction of the improvements subject to acquisition of the necessary financing. (Ord. 425, 1976; Ord. 93-18) 1 1 1 CITY OF SEWARD, ALASKA ORDINANCE 2023-016 5.20.035 Computation of assessments. (a) Costs of improvements. The costs of an improvement shall be the actual costs of the improvement, including acquisition of interests in land for the improvement, design, engineering, administration, overhead, professional services, guarantee fund, bond costs and interest incurred as a result of the improvement and all other costs resulting from the construction of the improvement. (b) Method of apportionment. All property included within the improvement district shall be considered and held to be all the property specially benefited by such public improvement and shall be the property to be assessed to pay the cost and expense thereof. Council may determine upon and use any method for spreading the assessment among the properties within the district, which bears a reasonable relationship to the benefit received by the properties. (c) Assessment roll. After the improvement has been completed and the costs of the improvement computed, the city manager shall prepare an assessment roll for the district. The special assessment roll shall contain property descriptions, names of owners of record and assessment amounts. When the assessment roll is completed, the council shall fix a time and place for a public hearing on objections to the assessment roll. 5.20.040 Hearings on objections to assessment roll. (a) Purpose. The hearing shall provide affected property owners the right to object to the method of apportionment used in the assessment roll. (b) Notice. (1) Notice of the public hearing shall be published in a newspaper of general circulation in the city at least once a week for four consecutive weeks prior to the time fixed for the hearing, and the fourth publication shall occur at least one week prior to the hearing. The city clerk shall send a written notice by first class mail at least 15 days prior to the time of hearing to each owner of property to be assessed. (2) The notice shall include a summary of the improvement, the designation of the properties to be assessed in the special improvement district, the purpose of the public hearing and the time and place fixed for the public hearing. Mailed notices shall state the amount of assessment against the particular tract. Each notice shall generally inform the property owner of the manner and method of protesting or objecting to the method of apportionment. (c) Correction to the roll. All persons concerned shall have a right to present their objections to the assessment and to point out errors and inequalities and submit such reasons for amendments and corrections as they may have. Council shall have power to vary the assessments in individual cases where the property assessed is not benefited commensurate with the amount of the assessment. After the council has heard all objections and suggestions, it shall correct all errors. When the roll is finally determined, the city clerk shall so certify. CITY OF SEWARD, ALASKA ORDINANCE 2023-016 5.20.045 Resolution on assessments. After the public hearing and determination of the assessment roll, the council by resolution shall confirm the special assessment roll of the special assessment district. The resolution shall provide for the levy and payment schedule of the assessments. No payment shall be required within 60 days after the resolution. Deferred or installment payments shall bear such interest as the city council may prescribe in the resolution. 5.20.050 Notice of assessment. Within ten days after final passage of the resolution levying the assessment, the city clerk shall mail, postage prepaid, a notice to the owner of each property assessed, which notice shall designate the property, the amount of the assessment, the time of delinquency and the amount of penalty. Within five days after the notices have been mailed, the clerk shall file his affidavit setting forth such mailing, which affidavit shall be conclusive as to the facts therein set forth. 5.20.055 Receipts from special assessments. Accounts for special assessment rolls shall be created and maintained in accordance with generally accepted governmental accounting principles. Moneys collected from special assessments shall be used solely to pay the cost of the improvements to which they apply and to the principal of and interest on indebtedness to the city. 5.20.060 Premature expenditures. No expenditures, other than for administrative engineering and legal work for any local improvement, the cost of which is to be borne by special assessments on the property benefited, shall be made unless the cash is on hand or bonds have been authorized to finance the cost thereof. 5.20.065 Special assessment bonds —authorized. The council may by ordinance authorize the issuance and sale of special assessment bonds to pay all or part of the cost of an improvement in a district. 5.20.070 Special assessment bonds —guarantee fund. Before the council may issue special assessment bonds, it shall establish a guarantee fund and appropriate to the fund annually a sum adequate to cover any deficiency in meeting payments of principal and interest of bonds issued by reason of nonpayment of assessments when due. In anticipation of delinquent assessments there may be added to each separate assessment appearing on the assessment roll a sum not less than three percent nor greater than ten percent of the assessment. 5.20.075 Penalty. Penalty for late payment of assessments shall be set in the resolution confirming the special assessment district. 1 CITY OF SEWARD, ALASKA ORDINANCE 2023-016 5.20.080 Assessment of all benefiting property. The council may assess for an improvement any real property, or any interest in real property, and the property specially benefited may include abutting, adjoining, adjacent, contiguous, noncontiguous or other property or interest in property benefited directly or indirectly by the improvement. The property to be assessed may include any property which is otherwise, for any reason, exempt from taxation by law. 5.20.085 Property owner. . The person whose name is listed on the latest tax roll as the owner of the property to be assessed is presumed to be the legal owner of the property. If the property owner is unknown, the property may be assessed in the name of the "unknown owner." No assessment is invalidated by a mistake, omission or error in the name of the owner if the property is correctly described. 5.20.090 Assessments to be lien on property. Such assessment shall be a lien upon the property assessed from the time the assessment is levied, which lien shall be paramount and superior to any other lien heretofore or hereafter created whether by mortgage or otherwise, except a lien for prior assessments and for general taxes, and shall be payable at such time as city council may prescribe and may be enforced in the same manner provided for the collection and enforcement of general taxes. 5.20.092 Delinquent assessment installments. Upon the delinquency of an assessment installment there shall be due and payable in , addition to the delinquent installment a penalty on the delinquent installment determined in accordance with the resolution confirming the assessment roll. Notice of the delinquency shall be mailed to the owner of record. The notice shall describe the delinquency and state that the entire principal balance of the assessment, plus accrued interest and penalty on the principal balance, shall be due and payable if the delinquent installment, plus penalty and interest, is not paid within six months of the date of the delinquency. A delinquency in the payment of an installment is cured by payment of the delinquent installment, plus penalty and interest, within six months of the date of the delinquency. If a delinquent installment, plus penalty and accrued interest, is not paid within six months of the date of the delinquency, the entire principal balance of the assessment, plus accrued interest and penalty on the principal balance, shall be due and payable. 5.20.095 Foreclosure of liens for unpaid assessments. Liens for unpaid assessments shall be foreclosed and the property sold in the same manner as provided for foreclosure of property for taxes. CITY OF SEWARD, ALASKA ORDINANCE 2023-016 5.20.100 Assessments to be binding. The regularity or validity of assessments as provided herein may not in any manner be contested or questioned by any proceeding whatsoever by any person not filing objections to such assessment roll prior to the confirmation thereof. 5.20.105 Appeals. The decision of council upon any objective may be reviewed by the state superior court in the manner prescribed by law and city charter. 5.20.110 Reassessments —Invalidation of original assessment. Whenever an assessment provided for in this chapter is set aside, annulled or declared void, or its enforcement refused by a court of the state or the United States, whether directly or by virtue of a decision of a court, the council may, by ordinance or resolution, make a new assessment or reassessment upon the lots, blocks or parcels of land benefited by the improvement. The reassessment shall be based on the special and peculiar benefit of the improvement to the respective parcels of land assessed at the time it was originally made. 5.20.115 Reassessments —Valid notwithstanding irregularities. The proceedings required by law to be taken before the making of an original assessment are not required to be taken in connection with a reassessment under this chapter. The reassessment shall be made and become a charge upon the property notwithstanding the omission, failure or neglect of an officer, body or person to comply with the provisions of law relating to improvement and assessment, and whether or not the proceedings of the council or a person connected with the work may have been irregular or defective and whether or not an irregularity was jurisdictional. Section 2. This ordinance shall take effect ten days following enactment. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 26th day of June, 2023. THE CITY OF SEWARD, ALASKA Sue McClure, Mayor CITY OF' SEWARD, ALASKA ORDINANCE 2023-016 AYES: NOES: ABSENT: ABSTAIN: ATTEST: Osenga, Finch, Barnwell, DeMoss, Calhoon, Wells, McClure None None None Kris Peck City Clerk (City Seqlottstsimitc, OF SEry '4% . Ci V 4et. s $•= SEAL = - : r. • '• NE 1 .\c Q",. -.• - City Council Agenda Statement Meeting Date: June 12, 2023 To: City Council From: Norm Regis, Acting City Manager Subject: Ordinance 2023-016: Amending Seward City Code Chapter 5.20 Improvement Districts Background and justification: During the Seward City Council Special Meeting on May 8th, Council directed City Administration to bring forward an Ordinance to address the needed modifications to Title 5 which would allow the City to provide a mechanism for assisting private property owners in the installation of public utilities which are required for residential development. Although the City has a current program for assisting Developers, no such mechanism is in place for private landowners. Recently, a petition was filed by several landowners inside City limits, but no code language existed for City Council to provide financial assistance for the cost of the utilities. Additional discussion needs to take place regarding funding such a program as well if this ordinance passes. Code Sections affected by this Ordinance: Amended Section Section Title Amendment 5.20.010 Authority and Intent Added "intent" to the heading 5,20,010(a) Authority and Intent Added section (b) to provide a mechanism for City Financial Contribution 5,20,015(a) Initiation Added verbiage requiring the list of parcels to be included in the petition 5.20.015(a) Initiation Removed 50% cost provision as that info is unknown at the time of petition 5.20.015(a) Initiation Added verbiage to incorporate AS 29.46 verbiage regarding 50% of property value representation 5.20.025(c) Hearing an Necessity Incorporated AS 29.46.1020(b) Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.3 Housing Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 0 Th's legislation (V): Creates revenue in the amount of: Creates expenditure in amount of: Creates a savings in the amount of: Has no fiscal impact x Funds are (V): Budgeted Line item(s): Not budgeted Not applicable x Fund Balance Information Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance: SMIC Parking Other Electric Water Wastewater Healthcare Note: amounts are unaudited $ n/a Finance Director Signature: x Yes Attorney Signature: Not applicable Comments: Sam Severin Administration Recommendation x Adopt Ordinance Other: