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HomeMy WebLinkAboutItem 06.eOctober 16, 2017 Item No.________ DEFERMENT OF SPECIAL ASSESSMENTS FOR SENIOR CITIZENS AND RESIDENTS WITH DISABILITIES Proposed Action Staff recommends adoption of the following motion: Move to approve the deferment of special assessments for those qualifying senior citizens and residents with disabilities for taxable year 2018. Overview The City Council can defer the payment of any special assessment on homestead property owned by an individual who is at least 65 years of age or is unemployed due to a total and permanent disability and meets the income requirements. The City Resolution Authorizing Deferment of Special Assessments requires that the average annual payment for assessments levied against the property must exceed one percent (1%) of the applicant’s adjusted gross income. Senior Citizen deferments are classifications that must be reapplied for annually. Deferment applications and income information have been submitted to the City by residents who were assessed as the result of street reconstruction projects. Renewal deferment applications were sent in May with an additional reminder was sent in September to those who did not yet submit their applications. One applicant did not submit a renewal application. One applicant reported an increase in income which, based upon the Resolution, exceeds the income limit to qualify for the senior deferment. In such events, in accordance with the City’s special assessment policy, the deferment is terminated and all unpaid installments on the special assessment, including accrued interest, become due and payable in full. Residents may re-apply for the deferment in the future if their income is reduced to a qualifying amount. Primary Issues to Consider  Will termination of the senior deferment and requirement to pay all unpaid installments on the special assessment result in a hardship to the property owners who no longer qualify? Supporting Information  Special Assessment Deferments Financial Impact: $ Budgeted: Y☐ N☐ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Zach Johnson, City Engineer /Julie Werner, Assistant Finance Director N/A Staff Analysis of Primary Issues Will termination of the senior deferment and requirement to pay all unpaid installments on the special assessment result in a hardship to the property owners who no longer qualify? The following special assessment deferments are recommended for termination: 16390 Harvard Dr. Original Asst. $8,098.24 Deferred installments: $728.84 Project: 2015 Street Reconstruction Phase II Property owner did not submit a renewal application for deferment. Two reminder letters were sent and staff was able to communicate with the resident via telephone to discuss the options if the deferment were terminated. No application has been submitted as of the date of this council item. Staff recommends termination of the deferment. If the property owner fails to pay the unpaid deferred installments by November 15, 2017, such amounts will be certified to the 2018 property taxes. The balance of the original assessment will be activated and amortized over the remaining term of the assessment. 19833 Jersey Ave. Original Asst. $3,826.72 Deferred installments: $363.54 Project: 2016 Street Reconstruction Property owner’s income exceeds the limit for deferment eligibility. Information has not been provided that supports continuance of the deferment due to hardship. Staff recommends termination of the deferment. If the property owner fails to pay the unpaid deferred installments by November 15, 2017, such amounts will be certified to the 2018 property taxes. The balance of the original assessment will be activated and amortized over the remaining term of the assessment. The following special assessment deferment is recommended to be extended for one-year: 6663 168th St. W. Original Asst. $4,162.36 Deferred installments: $1,768.99 Project: 2012 Street Reconstruction Property owner’s income exceeds the limit for the deferment eligibility. Property owner has provided information indicating that certain income received was one-time and anticipates meeting income guidelines going forward; therefore, termination of the deferment and requirement to repay the deferred installments would create a hardship. Staff recommends that the deferment continue for 2018 and has included this on the deferral list. *** SPECIAL ASSESSMENT DEFERMENTS Address City Project 20540 Idalia Avenue 5,337.09$        2011 Street Reconstruction 20245 Hunter Ct. 1,851.46$        2011 Street Reconstruction 6663 168th  St. W. *** 4,162.36$        2012 Street Reconstruction 17130 Florida Ct. 4,162.36$        2012 Street Reconstruction 6656 Gerdine  Path 4,162.36$        2012 Street Reconstruction 16642 Gerdine  Path 4,162.36$        2012 Street Reconstruction 20856 Iran Ave. 6,040.04$        2013 Street Reconstruction 16490 Gannon Ave. 3,235.84$        2013 Street Reconstruction 16249 Finch Way 3,786.44$        2014 Street Reconstruction 6614 Flounder Ct 3,218.47$        2014 Street Reconstruction 16237 Excelsior Dr. 3,786.44$        2014 Street Reconstruction 17478 Jersey Way 3,008.00$        2017 Street Reconstruction 46,913.22$       Original  Assessment  Amount Deferred