03-27-2019 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL MARCH 27, 2019 The foregoing resolution was duly seconded by Montour. Ayes (5). Nays (0). Resolution declared adopted. REQUEST FOR The City Clerk explained that in 2009, the City assisted the Canabury INTEREST Square Homeowners Association finance a large improvement project on REDUCTION ON A the entire building and sold bonds to pay for the project. She stated that an DEFERRED assessment was then certified to each unit's property taxes for a 15 year ASSESSMENT payment schedule beginning in 2010. She explained that in 2016 the Council changed the policy to allow these assessments to be paid off at any time, but the owners still had to pay the full 15 years' worth of interest The City Clerk explained that in February 2018, the City was able to refinance the bonds, and the residents payoff amount was then simply the balance plus interest for the current year. The City Clerk stated that all of the HIA assessments have been treated the same as any other assessment, which follows State Statute. Interest on all assessments (both payable and deferred) is accrued annually and added to the principal balance in one lump amount. City staff has always followed this assessment policy. The City Clerk explained that Rosalie Jackson is the property owner of a condominium at Canabury Square and currently has a deferred HIA assessment which has been accruing interest annually for the past six years. She stated that Ms. Jackson is in the process of applying for a loan to pay off her assessment, and anticipates having the loan process completed soon. Ms. Jackson has submitted a letter requesting that the Council forgive the interest for the remaining 2019 months after she pays off the assessment, which would be eight or nine months at $61.31 /month). Montour stated that all property owners should be treated the same. Torkelson agreed. Keis stated that he is willing to make a motion to approve this request. Fischer asked if the Council should review the Canabury Square assessment policy before approving this request so quickly. Montour stated that this improvement project was done to benefit the condo owner's property and it raised their property values, and he wants to treat everyone fairly. He noted that more people may come and ask for their interest to be forgiven and how much would that affect the City's ability to pay back the loan. McGraw agrees that this should be tabled so staff can see how much this would financially affect the City and draft an amended policy for Canabury Square deferred assessment payoffs. W