LOCAL IMPROVEMENT DISTRICT No. 2007-1
-- FREQUENTLY ASKED QUESTIONS --
Q: What is an LID assessment?
A: Local improvement districts provide a method of financing public improvements that
benefit properties in a given area. The City of Ocean Shores recently completed a
citywide road-rebuilding project and a portion of the total cost is assessed to each lot
that benefits from those improvements.
Q: Haven’t I already been paying an LID assessment?
A: Local Improvement Districts were formed in past years to finance the construction of
a vacuum sewer system, including sewer mains, pump stations, vacuum pit service
lines and valves. Properties that benefited from those improvements were assessed
for a portion of those costs but that project is completely separate from the new Road
Q: Can I set up a payment plan or make monthly payments?
A: Assessments are scheduled to be collected in 18 equal annual installments, plus
interest each year on the unpaid balance. The interest rate is 7.25% per annum. The
first payment is due November 29, 2011 and payments will be due each November
29 until the assessment is paid in full. Advance payments can be made at any time
and will be credited toward the amount of the next installment due November 29.
Q: Why do I have to pay interest?
A: The City of Ocean Shores sold bonds to finance the road re-building project. Until
November 29, 2010 property owners had an opportunity to pay any portion of the
assessment without interest. Now that the deadline has passed state law (RCW
35.49.050) requires the City of Ocean Shores to collect the full amount of interest
due to the bondholders after November 29, 2011. We have absolutely no ability to
negotiate this requirement.
Q: When will I receive a billing statement?
A: Billing statements will be mailed to property owners each year approximately 60 days
before the annual due date.
Q: Is there a discount for early payment?
A: Interest cannot be pro-rated for early payments. State law (RCW 35.49.050)
requires the City of Ocean Shores to collect the full amount of interest due at the
next installment due date, which is November 29, 2011.
Q: What period of time does each annual installment cover?
A: Annual installments are collected in arrears -- on the last day of the 12-month period
being covered. For example, the installment due November 29, 2011 covers the
period from November 30, 2010 through November 29, 2011.
Q: Do I have to pay this assessment?
A: Yes. The City of Ocean Shores borrowed money to finance the road improvements
and is now obligated by state law to collect assessments from the properties that
benefit. A late penalty of 12% per annum will accrue against any unpaid portion of
an overdue installment until payment is received. Furthermore, state law (RCW
35.50.030) requires the City of Ocean Shores to initiate foreclosure proceedings if
two installments are delinquent after January 1 of any year.
Q: Can this assessment be subordinated?
A: Local improvement district assessments in the State of Washington cannot be
subordinated. State law states that “the assessment lien shall be paramount and
superior to any other lien or encumbrance theretofore or thereafter created except a
lien for general taxes.” (RCW 35.50.010).
Q: Are LID payments tax deductible?
A: City employees are not authorized or qualified to provide federal tax advice. Please
consult the IRS or your tax consultant.
Q: Can I use a credit card to pay my assessment?
A: Yes. Although the City of Ocean Shores cannot process credit card transactions
directly, credit card payments can be made through a third party service. Go to
www.OfficialPayments.com or call toll-free (800) 272-9829. The City of Ocean
Shores jurisdiction # is 5658.
Please note: there is a convenience fee charged by the service provider that does
not benefit the City of Ocean Shores in any way.
Rick Knopf, LID Administrator
Send LID payments to:
City of Ocean Shores
PO Box 3925
Seattle, WA 98124-3925