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City of Portland



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17.12.140 Bonding.

(Amended by Ordinance Nos. 173369 and 177124, effective January 10, 2003.)

A. Within 30 days of the entry in the lien docket a property owner may apply to pay the assessment, deficit assessment or re-assessment or the amount remaining unpaid by installments as stated in the signed installment payment contract. The contract shall be in accordance with the terms and provisions of ORS 223.215. The contract shall be received by the Auditor subject to the limitations prescribed in this Section. The City may accept contracts after the 30-day period stated in this Section under procedures established by the City Auditor.

B.  If the sum assessed together with all unpaid sums then outstanding as assessments against the property exceeds one-half the real market valuation of the property as shown on the latest county tax rolls, then the Auditor shall reject the application unless the excess is paid in cash with the application and the application is made for the remainder only.

C.  If the installment payment contract has been received and is in force, the Treasurer may accept prepayments of any installments without penalty for the prepayment. Whenever an installment is paid, accrued interest to the due date of the installment on the unpaid assessment balance, plus interest on the past due installment if any, shall be paid with the installment.

D.  In addition to the procedures provided for in Subsections A. through C above, the procedures for bonding improvement assessments authorized by the Bancroft Bonding Act (ORS 223.205, 223.930) may be followed for improvement assessments when the Council so directs in the ordinance making the assessment.

E.  For purposes of this Section the term "property owner" means the owner of the Title to real property or the contract purchaser of real property, of record as shown on the last available complete assessment roll in the Office of the County Assessor.

F.  Interest rates for bonded assessments shall be set using an adjusted rate mechanism. The City Council shall set an interim rate by ordinance, which shall be applied to the unpaid balance until improvement bonds are sold to finance the bonded assessments. Upon sale of bonds, the Auditor shall adjust the interest rate to the rate received by the City on the bond issue (expressed as true interest cost) plus a fee to cover insurance and discount on the bonds. All subsequent payments will be made at the new adjusted rate. Property owners who sign an installment contract for systems development charges shall receive the adjusted rate.

G. Bond financing fees shall be charged to each installment contract to defray the costs of financing per a fee schedule on file with the City Auditor. The fee schedule will include a loan creation fee as well as a bond financing fee. Bond financing fees are in addition to costs set forth in Chapter 17.08

H. The City may charge a bond reserve fee on each installment payment contract to facilitate the sale of the improvement bonds. Proceeds from the bond reserve fee shall be dedicated to a reserve account and used as security for the improvement bonds that the City sells to finance the installment payment contract. A separate bond reserve account shall be created for each bond sale as required by the terms of the sale. This fee shall be in addition to the fees set forth in Chapter 17.08 and in Section 17.12.140 G.

I.  The City Auditor shall charge a billing and service charge which shall be added to each statement and shall be in addition to principal, interest, penalties, costs and other fees. This fee shall be per a schedule on file with the City Auditor. This fee shall be in addition to the fees set forth in this Chapter 17.08, Section 17.12.140 G. and Section 17.12.140 H.