What happens to leftover money in improvement district funds

A. In the event that any surplus remains in any reserve fund or bond account for any improvement district after the payment of all of the bonds, and interest thereon, which are payable therefrom, such surplus may be used for any one or more of the following purposes, as determined by the council by resolution or in the ordinance levying assessments: 1. For transfer to the general fund of the county, provided, that the amount shall not exceed the lesser of $1,000 or 5 percent of the total amount expended from the improvement account; 2. For transfer to a special fund for maintenance of the improvements constructed in the proceedings, or a specified part thereon; 3. Pro rata refunds to the owners of the properties assessed in the proceedings. B. For the purpose of this section, "owners" shall have the following meanings, depending on the circumstances applicable to the particular assessments: 1. The person or persons making the payment, as to an assessment paid during the thirty-day period provided in section 14.50.060 , and as to an unpaid assessment paid in advance pursuant to section 14.50.130 ; and 2. The person or persons who owned the property at the time of payment of the last installment paid on the unpaid assessment, as to all other assessments. C. There shall be transferred to the general fund of the county any portion of the surplus which shall not have been paid to or claimed by the persons entitled thereto within four years after the due date of the last bonds; and any interest earned from the investment of any moneys constituting the part of the surplus remaining during said four-year period. D. Notwithstanding the provisions of this section, moneys in any reserve fund shall be used by the director of finance to pay the principal or interest or both, in whole or in part, on the last outstanding maturity or maturities the bonds of the improvement district for which such reserve fund was established; and unpaid assessment installments or such portions thereof which would otherwise be collected to make such payment on the bonds shall be canceled unless such moneys are insufficient, after making the provision for delinquencies and the apportionments hereinafter provided for, to result in cancellation of at least 25 percent of the total amount of the last annual installment, in which event such use of the moneys shall not be made; and provided further, that if the moneys are so used, the director of finance shall first make provision for and retain a sufficient amount to cover reasonably expected delinquencies in payment of any portions of unpaid assessment installments which will not be canceled by such use of moneys in the reserve fund; and apportion to assessments paid during the thirty-day period and unpaid assessments paid in advance, pursuant to sections 14.50.060 and 14.50.130 , respectively, if any, their proportionate shares of the moneys, same to be paid to the owners (as defined above) of the properties subjected to the assessments. (Ord. 801 § 1 (part), 1974: prior code § 25-8.7)