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HomeMy WebLinkAboutItem 06.g October 15, 2018 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 2019. 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 (see Policy #5.14 Section 6). Deferments are classifications that must be reapplied for annually. Residents that don’t meet the hardship criteria established in the policy may still apply to the Council for a waiver. The income requirements for hardship were amended by Council on February 20, 2018 to reflect the poverty guidelines as established by the US Department of Health and Human Services and became effective with the 2018 street reconstruction project. Council also approved the existing deferrals (including deferrals for the 2017 street reconstruction project) be grandfathered into the program using the previous income criteria that states the average annual payment for assessments levied against the property must exceed one percent (1%) of the applicant’s adjusted gross income. If an existing deferral fails to meet the grandfathered criteria and the assessment is then activated, future re-applications for deferral would be based on the new hardship requirements. 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 sent in September to those who did not yet submit their applications. There are nine senior deferments recommended for approval compared to twelve in the previous year. 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 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: 16642 Gerdine Path. Original Asst. $4,162.36 Deferred installments: $2,122.79 Project: 2012 Street Reconstruction Property owner contacted the City and requested the termination of the deferment. The unpaid deferred installments will be certified to the 2019 property taxes. The balance of the original assessment will be activated and amortized over the remaining term of the assessment. 17478 Jersey Way. Original Asst. $3,008.00 Deferred installments: $313.33 Project: 2017 Street Reconstruction Property owner did not submit a renewal application for deferment. Two reminder letters were sent and staff included in the letter 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, 2018, such amounts will be certified to the 2019 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: 17130 Florida Ct. Original Asst. $4,162.36 Deferred installments: $2,122.79 Project: 2012 Street Reconstruction Property owner’s income exceeds the limit for the deferment eligibility. Property owner has provided information indicating that certain income received was one-time and anticipates meeting income guidelines going forward; therefore, termination of the deferment and requirement to repay the deferred installments would create a hardship. Staff recommends that the deferment continue for 2019 and has included this on the deferral list. *** SPECIAL ASSESSMENT DEFERMENTS Address City Project 20540 Idalia Avenue 5,337.09$ 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 20856 Iran Ave. 6,040.04$ 2013 Street Reconstruction 16490 Gannon Ave. 3,235.84$ 2013 Street Reconstruction 6614 Flounder Ct 3,218.47$ 2014 Street Reconstruction 16237 Excelsior Dr. 3,786.44$ 2014 Street Reconstruction 17524 Iceland Trl 3,740.00$ 2018 Street Reconstruction 35,534.06$ Original Assessment Amount Deferred