S-1110               _______________________________________________

                                                   SENATE BILL NO. 5344

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State of Washington                               51st Legislature                              1989 Regular Session

By Senator McCaslin

Read first time 1/20/89 and referred to Committee on   Governmental Operations.

AN ACT Relating to improvement assessments; and amending RCW 35.49.020 and 36.88.140.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 35.49.020, chapter 7, Laws of 1965 as last amended by section 1, chapter 96, Laws of 1982 and RCW 35.49.020 are each amended to read as follows:

          In all cases where bonds are issued to pay the cost and expense of a local improvement, the ordinance levying the assessments shall provide that the sum charged against any lot, tract, and parcel of land or other property, or any portion thereof, may be paid during the thirty day period allowed for the payment of assessments without penalty or interest and that thereafter the sum remaining unpaid may be paid in equal annual principal installments or in equal annual installments of principal and interest.  The number of installments shall be less by two than the number of years which the bonds issued to pay for the improvement are to run.  The estimated interest rate may be stated in the ordinance confirming the assessment roll.  Where payment is required in equal annual principal installments, interest on the whole amount unpaid at the rate fixed by the ordinance authorizing the issuance and sale of the bonds shall be due on the due date of the first installment of principal and each year thereafter on the due date of each installment of principal:  PROVIDED, That the legislative authority of any city or town having made a bond issue payable on or before twenty-two years after the date of issue may provide by ordinance that all assessments and portions of assessments unpaid after the thirty day period allowed for payment of assessments without penalty or interest may be paid in ten equal installments beginning with the eleventh year and ending with the twentieth year from the expiration of said thirty day period, together with interest on the unpaid installments at the rate fixed by such ordinance, and that in each year after the said thirty day period, to and including the tenth year thereafter, one installment of interest on the principal sum of the assessment at the rate so fixed shall be paid and collected, and that beginning with the eleventh year after the thirty day period one installment of the principal, together with the interest due thereon, and on all installments thereafter to become due shall be paid and collected.

When payment is made in annual installments, the city shall allow the annual assessment payment to be made in equal monthly payments during the twelve months preceding the annual payment date.  The city treasurer shall adjust the rate of interest on the assessment to reflect the investment earnings expected on the advance payments.  The adjustment may take the costs of processing the advance payments into account.

        Sec. 2.  Section 36.88.140, chapter 4, Laws of 1963 as last amended by section 11, chapter 156, Laws of 1981 and RCW 36.88.140 are each amended to read as follows:

          The county legislative authority shall prescribe by resolution within what time such assessment or installments thereof shall be paid, and shall provide for the payment and collection of interest and the rate of interest to be charged on that portion of any assessment which remains unpaid over thirty days after such date.  Assessments or installments thereof which are delinquent, shall bear, in addition to such interest, such penalty not less than five percent as shall be prescribed by resolution.  Interest and penalty shall be included in and shall be a part of the assessment lien.   All liens acquired by the county hereunder shall be foreclosed by the appropriate county officers in the same manner and subject to the same rights of redemption provided by law for the foreclosure of liens held by cities or towns against property in local improvement districts. When payment is made in annual installments, the county treasurer shall allow the annual assessment payment to be made in equal monthly payments during the twelve months preceding the annual payment date.  The county treasurer shall adjust the rate of interest on the assessment to reflect the investment earnings expected on the advance payments.  The adjustment may take the costs of processing the advance payments into account.