Los Angeles Municipal Code Art. 6 Improvement Assessment Revolving Trust Fund

Section

• 5.99 Creation of Fund.

• 5.100 Action by Council.

• 5.101 Report on Sufficiency of Funds.

• 5.102 Proceeds to Be Paid into the Fund.

• 5.103 Street Improvement Assessments.

• 5.103.1 Advancing Payments of Assessments Levied Against Property Owned by the City.

• 5.103.2 Financing Assessment Deferral.

• 5.104 Excess to Be Transferred to General Fund.

There is hereby created and established in the City Treasury a trust fund to be known as the “Improvement Assessment Revolving Trust Fund”. The unexpended balances and assets of the “Sewer Assessment Purchase Revolving Fund”, created by Ordinance No. 99,534, as amended by Ordinance No. 103,597 and of the “Street Improvement Ordinance of 1941 Revolving Fund”, created by Ordinance No. 94,779, are hereby transferred to said “Improvement Assessment Revolving Trust Fund”, and the Board of Public Works is hereby authorized to cause demands to be drawn on said trust fund subject to the provisions of this article.

SECTION HISTORY

Based on Ord. No. 134,367.

The City Council may elect as authorized by Section 5135 of the Streets and Highways Code to purchase at the option of the contractor an assignment of the entire warrant, assessment and diagram for any improvement authorized by the Improvement Act of 1911 (Div. 7, Streets and Highways Code) where in the opinion of the City Engineer the bond discount may be substantially higher than for bonds of similar projects being processed at approximately the same period of time. In the event the contractor agrees to sell pursuant to the contractor’s option, only those funds available and unallocated in said herein created and established fund may be used for the purchase by the City of the assignment.

SECTION HISTORY

Based on Ord. No. 134,367.

Prior to the adoption of an ordinance of intention which contains the provision that the City Council may purchase, at the option of the contractor, an assignment of the entire warrant, assessment and diagram, the City Engineer shall determine and report to the Board of Public Works that sufficient funds are available for the said purchase. The adoption by the City Council of the said ordinance shall constitute an encumbrance of funds for this purpose.

SECTION HISTORY

Based on Ord. No. 134,367.

The proceeds arising from the City’s ownership of the warrant, assessment and diagram, including payments on the bonds issued to represent unpaid assessments, and payments of all other principal, interest, penalties and costs, shall be paid into the Improvement Assessment Revolving Trust Fund. All bonds acquired by the purchase of an assignment shall be retained by the City Treasurer and serviced by the City Treasurer for the said fund.

SECTION HISTORY

Based on Ord. No. 134,367.

In addition to the purpose of purchasing warrants, assessments and diagrams as provided in Section 5.100, monies may be withdrawn from the fund to make progress payments to contractors or to pay right-of-way or utility relocation costs as directed by the Board of Public Works. Also, the fund may be used to meet the cost of constructing improvements pursuant to Article 1 of Chapter 2 of Division 6 of this Code, and the proceeds from assessments made pursuant to said Article 1, including penalties, interest and costs, shall be paid into said fund.

SECTION HISTORY

Based on Ord. No. 134,367.

Amended by: Ord. No. 143,274, Eff. 5-13-72.

Said revolving trust fund shall also be used for the purpose of advancing payment of assessments levied against property owned by the City of Los Angeles or other public agencies under the Improvement Act of 1911 (Div. 7, Streets and Highways Code). Demand for such purpose shall be drawn by the Board of Public Works, payable to the Bureau of Assessments of the City of Los Angeles, and the said Bureau shall forthwith process such demands for payment prior to the expiration of 30 days following the date of recordation of any warrant which includes any such assessments. The Board of Public Works shall collect from the owner of the property against which such assessment was levied the amount of the demand drawn, and shall deposit such amounts when collected in said revolving trust fund.

SECTION HISTORY

Based on Ord. No. 134,367.

Amended by: Ord. No. 136,278.

Added by Ord. No. 140,175, Eff. 6-17-70.

Said revolving trust fund may also be used, to a maximum of $100,000 in each fiscal year, for the purpose of advancing payment of assessments under the City’s Assessment Deferral Program. The Board of Public Works shall approve each such payment of assessments.

SECTION HISTORY

Added by Ord. No. 172,698, Eff. 8-15-99.

At the close of each fiscal year all moneys in said “Improvement Assessment Revolving Trust Fund” in excess of $500,000 not allocated shall be transferred to the reserve fund.

SECTION HISTORY

Based on Ord. No. 134,367.