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HomeMy WebLinkAbout124 - 09/16/2003 - AMENDING THE CITY CODE RELATING TO THE LIMIT ON SPECIAL IMPROVEMENT DISTRICT ASSESSMENTS ORDINANCE NO. 124, 2003 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 22-90 OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO THE LIMIT ON SPECIAL IMPROVEMENT DISTRICT ASSESSMENTS WHEREAS, Chapter 22, Article III of the City Code authorizes the City Council to form special improvements districts and to contract for or make local improvements which confer special benefits on the real property within those districts,as well as general benefits to the City at large,and to assess the costs of such improvements wholly or in part upon the property especially benefited; and WHEREAS,Section 22-90 of the City Code establishes a limit on the amount of assessments that can be imposed upon any parcel of real property within a special improvement district and limits that amount to one-half of the property's actual value, not including the proposed district improvements; and WHEREAS,the purpose of this limitation is to protect the financial interests of the City by ensuring that,if a particular property owner fails to pay a special assessment when due and the City forecloses its special assessment lien against such property, the net proceeds of the sale of the property will be sufficient to fully reimburse the City for the property's share of the cost of the district improvements; and WHEREAS, it is possible that the initial cost of the improvements in a particular special improvement district may be paid by one or more of the property owners to be included within the district, with the expectation that the City will thereafter reimburse those property owners for the portion of the cost that should be borne by other benefited properties in the district, which reimbursement would be funded by assessments levied against the properties of the other benefited property owners; and WHEREAS,under such circumstances,the City is not at risk if a particular property owner defaults in the payment of assessments,and the net proceeds from the sale of the property fail to fully satisfy that property's share of the cost of the improvements; and WHEREAS, the relaxation of the limit on assessments against properties within a special improvement district may be of benefit to the property owners within a district who advance the cost of district improvements, in that a higher assessment against the other benefited properties may better enable the City,through the collection of assessments,to fully repay the property owners who advanced the cost of the district improvements; and WHEREAS, the City Council believes it to be in the best interests of the City to amend Section 22-90 of the City Code to increase the maximum amount of assessment that can be levied against benefited properties within a district when the costs of district improvements are paid by certain participating property owners,rather than by the City,so long as the amount assessed against any particular property is not greater than the amount of appreciation in the value of the property resulting from the construction of the district improvements. NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Section 22-90(a) of the City Code is hereby amended so as to read in its entirety as follows: Sec. 22-90. Limit on assessments; city to pay certain costs. (a) No property in the district shall be assessed for any improvements in an amount exceeding the amount of appreciation in the value of such property which will result from the construction of the district improvements. In addition,if the cost of the district improvements is paid by the city, no property in the district shall be assessed for such improvements in an amount exceeding one-half (1/2) of such property's actual value not including the proposed district improvements, which property value shall be conclusively presumed to be equivalent to such property's actual valuation as computed from the records of the county Assessor in accordance with state statutes for the year preceding the assessing ordinance. However, if the cost of the improvements in the district is paid by one (1) or more property owners to be included in the district, then each property in the district may be assessed for such improvements up to an amount equal to one-half(1/2)of such property's actual value including the proposed district improvements, and such value may be determined on the basis of an appraisal submitted to the City Council by a certified appraiser at or before the hearing on the assessing ordinance. The foregoing limitation(s) on assessments shall not apply to any property when all of the owners of such property expressly waive the limitation in writing and the City Council has determined that adequate collateral security exists to ensure the full payment of all assessments in the district so that a proposed waiver should be accepted by the city. Introduced and considered favorably on first reading and ordered published this 2nd day of September, A.D. 2003, and to be presented for final passage on the 16th day of September, A.D. 2003. Mayor ATTEST: !40 City Clerk Passed and adopted on final reading this 16th day of September, A.D. 2003. Mayor ATTEST: City Clerk