Local Improvement Districts (LIDs)
Overview of LID Process
Phase I (Development & Creation of LID)
- The City of Pasco Engineering Department will notify all property owners of the public hearing on formation of LID by mail and through local publications. A copy of the preliminary assessment roll is provided to the Finance Department.
- City Council passes an ordinance creating the LID and ordering the improvement. RCW 35.43.070
- The City of Pasco publishes the ordinance creating the LID in official newspaper.
- Within 15 days of the creation of the LID, the ordinance creating the LID, a boundary diagram of the LID and a preliminary assessment roll are filed with the City Treasurer. The proposed assessment roll is immediately posted to the index of local improvement assessments by the City Treasurer. RCW 35.50.005.
- Under RCW 35.50.010, the charge assessed upon the property listed in the assessment roll confirmed by ordinance of the City Council for the purpose of paying the cost and expense of any local improvement, shall be a lien upon the property assessed from the time the assessment roll is placed in the hands of the City Treasurer. The assessment is paramount and superior to any other lien or encumbrance theretofore or thereafter created except a lien for general taxes.
Phase II (Completion of LID Construction)
- Upon completion of construction and determination of final costs, the Engineering Department will notify the property owners on the assessment roll of the amount of the final assessment by mail.
- City Council will be asked to pass an ordinance of the final assessment amounts to be levied.
- Ten days after the passing of the ordinance, the City Treasurer will publish in the official newspaper once a week for two consecutive weeks and (within 15 days after the first such publication) send by certified mail to all property owners, notice that roll is filed for collection. The letter will also include instructions regarding:
- a 30-day pre-payment period that starts after the first publication
- the date of the annual payment
- the proposed interest rate
- the number of installment payments (10 years for streets & other improvements, 15 years for water and sewer improvements)
- the date that the first payment is due (one year after the end of the 30 pre-payment period).
Phase III (Financing and Payment)
- Upon completion of the 30-day pre-payment period, the City will secure financing for the LID costs remaining after any prepayments received.
- Properties are billed once a year by the City Treasurer
- Annually, title companies are notified of LID properties. At time of sale, title companies request payoff amounts from the City.
For questions or payoff quotes.