SENATE BILL REPORT

SB 5344

BYSenator McCaslin

Authorizing monthly installment payments for local improvement district assessments.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 20, 1989

Senate Staff:Sam Thompson (786-7754); Eugene Green (786-7405)

AS OF FEBRUARY 17, 1989

BACKGROUND:

An assessment within a local improvement district (LID) or utility local improvement district (ULID) may be paid in one lump sum after the assessment roll has been confirmed, or it may be paid in annual installments, with interest.  The assessments are used to redeem bonds issued to pay for the improvement.  Depending upon the cost of the improvement, annual assessments may be significant sums of money.  Some property owners within LIDs propose that they be allowed to pay an annual assessment installment in smaller, monthly payments.

SUMMARY:

Installments of LID, ULID and county road improvement assessments may be paid in equal monthly payments during the 12 months preceding the annual payment date.  The rate of interest on the assessment must be adjusted to reflect the rate of investment earnings expected on the advance payments.  The adjustment may take the costs of processing the advance payments into account.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested