01-07-2020 NLMDACNorth Lake
Management District
Ordinance on Delinquent Assessments
- First Reading -
Public Works Department
Surface Water Management
Leah Myhre
January 7, 2020
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Policy Question
Should Council adopt an Ordinance establishing the time of payment, interest, and penalties to be imposed on delinquent annual special assessments for the North Lake Management District
Number 2?
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What is a Lake Management District?
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A Lake Management District is a form of special-service district by which assessments on lake-area properties can fund specified lake management activities.
(RCW 36.61.020)
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Renewal Process to Date
Jan. – Mar. 2019: Petition created by North LMD Advisory Committee
Apr. 1: Presentation of Petition and Resolution of Intent to LUTC Committee
May 21: Adoption of Resolution setting public hearing date on the renewal
July 16: Public hearing on the renewal of the proposed District
Adoption of Resolution renewing the North LMD and calling for a vote by affected property owners
July 31: Ballots sent out to affected property owners to vote on renewal
Aug. 23: Voting deadline; votes tabulated with a majority in favor of renewal
Oct. 1: Adoption of Ord. renewing North LMD and setting a public hearing on the assessment roll
Nov. 5: Public hearing on the proposed special assessment roll for the District
Resolution confirming and approving assessment roll
Dec. 2: Presentation of Ordinance and Resolution to LUTC Committee
Ordinance to establish time of payment, interest, and penalties for assessments
Resolution to create North LMD Advisory Committee and establish the duties thereof
Jan. 7: First Reading of Ordinance at City Council meeting
Adoption of Resolution on North LMD Advisory Committee
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Public Hearing on Assessments
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Required by RCW 36.61.120 to provide affected property owners a chance to file objections to proposed assessments.
The Resolution approving and confirming the special assessment roll for the North Lake Management District Number 2 was approved on November 5, 2019.
Final Step = Ordinance on Delinquent Assessments
RCW 35.21.403 and RCW 36.61.200
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Annual Assessments
Assessments are billed annually through the King County Assessor.
All property owners within the established boundary of the LMD pay an assessment based on property type.
Annual revenue allows for continuous funding of short- and long-term lake management activities without the burden of soliciting funds.
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Delinquent Assessments
If not paid by the deadline of May 10th each year, assessments are considered delinquent, and are subject to:
Interest: 1% per month
Penalty: 5% of the assessment
Minimum allowed by RCW 36.61.200
Automatic lien against property
If left unpaid for more than 3 years, King County may begin foreclosure proceedings for nonpayment.
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Next Steps
Jan. 21: Second Reading of Ordinance at City Council meeting
Adoption of Ordinance Setting Special Assessment Roll
January/February: Open recruitment for Advisory Committee
March: Appointment of Advisory Committee
April: Begin assessment collection through King County
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Options Considered:
Forward the proposed Ordinance to Second Reading at the January 21, 2020 City Council meeting.
Do not adopt the proposed Ordinance and provide direction to staff.
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Recommendation
The Mayor recommends Option 1.
At the December 2, 2019 LUTC meeting, the Committee unanimously recommended adoption of the proposed ordinance.
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Questions?
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Ordinance Renewing North LMD
Duration
2020 – 2029
Purpose
Boundary
Funding Mechanism
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Adopted at Council on 10/1
Funding Mechanism = annual assessments billed to property owners within LMD boundary
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Assessment Calculation & Payment
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Property Type x Rate = Annual Assessment
How are assessments determined for each affected property owner (parcel)?
How and when does payment occur?
Will speak to delinquent assessments at public hearing
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North LMD Property Types
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Number of Parcels by Type: 57 SFD; 2 SFD LA; 7 SFV (218 ft); 8 CP (3,796 ft.); 1 WDFW
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North LMD Proposed
Assessment Rate Structure
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Annual Assessment Increases
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Assessments are subject to annual, automatic inflation based on the previous year’s Seattle Consumer Price Index (CPI-U)
Not to exceed 5% in any given year
Average increase:
Last 10 years (2009 – 2018) = 1.90%
Last 5 years (2014 – 2018) = 2.34%
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Historical Assessment Comparison
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Assessment Comparison by Type
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Not sure if this is needed… also needs some tweaking for clarity I think.
Labels:
SFD = single-family, developed
SFV = single-family, vacant
DLA = single-family, deeded lake access, developed
VLA = single-family, deeded lake access, vacant
WV = Weyerhaeuser vacant
CP = commercial property
WDFW = WA Dept. of Fish & Wildlife
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Assessment Comparison by Type
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Not sure if this is needed… also needs some tweaking for clarity I think.
Labels:
SFD = single-family, developed
SFV = single-family, vacant
DLA = single-family, deeded lake access, developed
VLA = single-family, deeded lake access, vacant
WV = Weyerhaeuser vacant
CP = commercial property
WDFW = WA Dept. of Fish & Wildlife
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Assessment Comparison by Type
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Not sure if this is needed… also needs some tweaking for clarity I think.
Labels:
SFD = single-family, developed
SFV = single-family, vacant
DLA = single-family, deeded lake access, developed
VLA = single-family, deeded lake access, vacant
WV = Weyerhaeuser vacant
CP = commercial property
WDFW = WA Dept. of Fish & Wildlife
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Public Comment
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Failure to Pay Assessment
If the annual assessment is not paid by May 10th of each year, the property is considered delinquent
Interest charges of 1% per month will be added to the total assessment amount
1 year unpaid = lien against property
3 years unpaid = County may foreclose
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Public Notice Contents
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Total amount to be collected by the proposed special assessment roll;
Public hearing date, time, and location;
Availability of proposed assessment roll document for review;
How to file objections to the proposed special assessment roll; and,
Individual assessment amount (for letters mailed to property owners).
(RCW 36.61.140)
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Current North LMD Status
Duration:
ten years (2010-2019)
Primary Goals:
aquatic vegetation management, public education, and water quality monitoring
Funding (Assessments):
billed annually and are subject to CPI inflation rates each year
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Vote by Affected Property Owners
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July 31: Ballots sent
August 23: Voting Deadline
Final Results:
In favor: 7,566
Against: 125
RCW 36.61.090:
Votes are weighted by the proposed annual assessment for each property owner; i.e. one vote per assessment dollar to be paid annually
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LMD Benefits
Generates a proactive and ongoing process and structure for lake management activities.
Establishes representation through an Advisory Committee.
Develops an effective communication network to notify property owners about key issues affecting the lake.
Creates an equitable and fair funding mechanism through assessments that are billed to all affected property owners, including residential, commercial, and public access properties such
as the WDFW boat launch.
Allows for continuous funding of short- and long-term lake management activities without the burden of soliciting funds.
Inhibits invasive aquatic weeds from spreading to other lakes throughout the region.
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North Lake Management District (NLMD)
King County involvement
2004 IAVMP developed
2004 NLSC formed
2005 City annexation
2005 AWMF Grant
2009 LMD formed
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North Lake Advisory Committee
7 Members:
5 residential property owners
(SF or vacant)
1 WDFW
1 Weyerhaeuser/IRG
Staff support:
meeting coordination, newsletters, budget updates, annual reports, and water quality monitoring data analysis
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Staff support is paid for directly by LMD funds.
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Purpose: Aquatic Vegetation Management
Plant Surveys
Treatment/Control
Herbicide Monitoring
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Milfoil, fragrant water lily, purple loosestrife, yellow flag iris, and other noxious weeds
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Purpose: Public Education
e-Newsletters
Web Page
Annual Report
Annual LMD Picnic with Steel Lake
Assessment Reminder Letters
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Purpose: Water Quality Monitoring
Sample collection and measurements conducted by volunteer lake resident
Analysis by King County Lab in Seattle
Data entry, management, and reporting of water quality results by City of Federal Way Surface Water Management staff
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Purpose: Water Quality Monitoring
Objectives:
Gather baseline data
Assess long-term trends
Identify potential water quality problems, such as harmful algae blooms or nutrient overloading
Educate lake residents and users
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Parameters assessed: visibility, temperature, dissolved oxygen, nutrients, chlorophyll, and bacteria
Mesotrophic lake: clear water lake with submerged aquatic plants and medium levels of nutrients; intermediate level of productivity
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NLMD Boundary & Duration
Boundary: includes all lakefront properties and deeded lake access properties.
Duration: 10 years
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Estimated NLMD Annual Costs
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The budget is reviewed quarterly to ensure expenditures do not exceed available funds. There is also often carryover budget from the previous year. Work plans are updated annually. Average
annual spending of $11,660 over the last 9 years of the NLMD.
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Petition Sufficiency
A lake management district may be initiated upon either the adoption of a resolution of intention by a county legislative authority or the filing of a petition signed by ten (10) landowners
or the owners of at least fifteen percent (15%) of the acreage contained within the proposed lake management district, whichever is greater.
(RCW 36.61.030)
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Public Hearing Notice Timeline
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Oct. 18: Letters sent to affected property owners
Oct. 18: Public Notice published in The Mirror
Oct. 25: Public Notice published in The Mirror
Nov. 5: Public Hearing at City Council meeting
*Fulfills public notice requirements per RCW 36.61.040 and RCW 36.61.140
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