HomeMy WebLinkAboutItem 06.c
October 21, 2019 Item No.
DEFERMENT OF SPECIAL ASSESSMENTS FOR
SENIOR CITIZENS, DISABLED AND MILITARY
Proposed Action
Staff recommends adoption of the following motion: Move to approve the deferment of special
assessments for those qualifying residents who are senior citizens, disabled or ordered into active
military service for taxable year 2020.
Overview
The City Council can defer the payment of any special assessment on homestead property owned
by the applicant who meets the household income requirements and meets one of the following
criteria: 1)is at least 65 years of age or is unemployed due to a total and permanent disability or 2)
is a member of the Minnesota National Guard or other military reserves who is ordered into active
military service for whom it would be a hardship to make the payments (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 five senior deferments recommended for approval compared to nine 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 deferment is recommended for termination:
6663 168th St. W Original Asst. $4,162.36 Deferred installments: $2,476.59
Project: 2012 Street Reconstruction
Property owner’s income exceeds the limit for the deferment eligibility. This property owner was
previously grandfathered into the program and provided a one-year extension in 2017. Income
continues to exceed the limits for both policies. The unpaid deferred installments will be certified
to the 2020 property taxes. The balance of the original assessment will be activated and amortized
over the remaining term of the assessment.
SPECIAL ASSESSMENT DEFERMENTS
Address City Project
20245 Hunter Ct. 1,851.46$ 2011 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
18,508.17$
Original
Assessment
Amount Deferred