Part 15 — USE BY CITY OF STATE LEGISLATION FOR SPECIAL ASSESSMENT PROCEEDINGS AND

proceedings.

Nothing contained in the San José Municipal Code shall be deemed to limit the authority of the City of San José to employ any special assessment proceedings contained in the laws of the state of California, including but not limited to the Improvement Bond Act of 1911, the Municipal Improvement Act of 1913 and the Improvement Bond Act of 1915, in connection with the construction or maintenance of any public improvement or the acquisition of any property for public use where the cost of such construction, maintenance or acquisition is to be paid in full or part by special assessments or through special assessment taxes upon land.

Furthermore, nothing contained in the San José Municipal Code shall be deemed to limit the authority of the City of San José to employ any "in rem" validation proceeding which is authorized by the laws of the state of California, including but not limited to Government Code Section 53510, the Improvement Bond Act of 1911 and the Municipal Improvement Act of 1913, in order to determine the validity of any assessment, bond, warrant, contract, obligation or evidence of indebtedness undertaken in connection with construction or maintenance of any public improvement or the acquisition of any property for public use where the cost of such construction, maintenance or acquisition is paid in fill or in part by special assessments or through special assessment taxes upon the land imposed under any provision of the Municipal Code of San José or any law of the state of California.

(Prior code § 2600.191; Ord. 19650.)

The reserve fund created under Section 14.16.1750 by assessment in Improvement District No. 77-148SJ in order to advance funds to meet the bond redemption payments in case of delinquent assessments in said district shall be in the total original amount of one hundred seventy thousand dollars. All interest earned by the reserve funds of said district shall be credited towards the assessments for said district as set forth hereafter. Each year at the time assessment payments due from any property owners are payable, the city shall credit toward the assessments in said district in the manner provided by Section 10427.1 of the Streets and Highways Code, the total amount of interest earned on said district reserve fund, and in addition thereto, the sum of eight thousand five hundred dollars (which said sum excluding interest shall be hereinafter called "annual fund disbursement"), which is to be deducted from said district reserve fund; provided, however, in recognition of the fact that advances may be made from year to year to cure delinquent assessments in said district, no portion of the annual fund disbursement shall be credited from the reserve fund in any year in excess of the amount which would cause the district reserve fund to equal the minimum amount as set forth herein to be maintained in said district reserve fund. The minimum amount shall be defined as one hundred seventy thousand dollars less eight thousand five hundred dollars for each of the years in which assessments are due in said district. Thus, no deductions from such reserve fund for the purpose of making the annual fund disbursement herein shall be made which would cause the reserve fund to fall below the minimum amounts as of the time made, in any year as set forth below.

Year Minimum Amount

1980 $161,500

1981 153,000

1982 144,500

1983 136,000

1984 127,500

1985 119,000

1986 110,500

1987 102,000

1988 93,500

1989 85,000

1990 76,500

1991 68,000

1992 59,500

1993 51,000

1994 42,500

1995 34,000

1996 25,500

1997 17,000

1998 8,500

In the event that annual fund disbursement toward the assessment was not fully made in any year because there were insufficient amounts in the reserve fund to meet the minimum balances set forth above, and such amounts are later replenished through foreclosure or otherwise, the city may thereafter credit any amounts in the reserve fund in excess of the minimum shown above towards the assessments for said district.

In the event assessments are paid in cash in advance of their final maturity date, the city is authorized, but not required, to reduce the minimum amounts in the reserve fund and increase the annual fund disbursement in the proportion in which the assessments paid in cash bear to the total original assessments. Thus, for example, if in any year one-fourth the total original assessments have been paid in cash, the minimum amount in the reserve fund for that year and succeeding years could be reduced by one-fourth.

All sums remaining in the reserve fund on July 2, 1999, or thereafter collected through foreclosure or otherwise shall be credited toward remaining assessments as set forth above.

(Ord. 19592.)

The reserve fund created under Section 14.16.1750 by assessment in Improvement District No. 78-151SJ in order to advance funds to meet the bond redemption payments in case of delinquent assessments in said district shall be in the total original amount of eighty-five thousand dollars. All interest earned by the reserve funds of said district shall be credited towards the assessments for said district as set forth hereafter. Each year at the time assessment payments due from any property owners are payable, the city shall credit toward the assessments in said district in the manner provided by Section 10427.1 of the Streets and Highways Code, the total amount of interest earned on said district reserve fund, and in addition thereto, the sum of four thousand two hundred fifty dollars (which said sum excluding interest shall be hereinafter called "annual fund disbursement"), which is to be deducted from said district reserve fund; provided, however, in recognition of the fact that advances may be made from year to year to cure delinquent assessments in said district, no portion of the annual fund disbursement shall be credited from the reserve fund in any year in excess of the amount which would cause the district reserve fund to equal the minimum amount as set forth herein to be maintained in said district reserve fund. The minimum amount shall be defined as eighty-five thousand dollars less four thousand two hundred fifty dollars for each of the years in which assessments are due in said district. Thus, no deductions from such reserve fund for the purpose of making the annual fund disbursement herein shall be made which would cause the reserve fund to fall below the minimum amounts as of the time made, in any year as set forth below.

Year Minimum Amount

1980 $80,750

1981 76,500

1982 72,250

1983 68,000

1984 63,750

1985 59,500

1986 55,250

1987 51,000

1988 46,750

1989 42,500

1990 38,250

1991 34,000

1992 29,750

1993 25,500

1994 21,250

1995 17,000

1996 12,750

1997 8,500

1998 4,250

In the event that annual fund disbursement toward the assessments was not fully made in any year because there were insufficient amounts in the reserve fund to meet the minimum balances set forth above, and such amounts are later replenished through foreclosure or otherwise, the city may thereafter credit any amounts in the reserve fund in excess of the minimum shown above towards the assessments for said district.

In the event assessments are paid in cash in advance of their final maturity date, the city is authorized, but not required, to reduce the minimum amounts in the reserve fund and increase the annual fund disbursement in the proportion in which the assessments paid in cash bear to the total original assessments. Thus, for example, if in any year one-fourth the total original assessments have been paid in cash, the minimum amount in the reserve fund for that year and succeeding years could be reduced by one-fourth.

All sums remaining in the reserve fund on July 2, 1999, or thereafter collected through foreclosure or otherwise shall be credited toward remaining assessments as set forth above.

(Ord. 19648.)