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MINUTES <br />CITY COUNCIL <br />AUGUST 10, 2011 <br />Keis asked what a mortgage company's position would be on this issue. <br />The City Administrator reported that mortgage companies do not always <br />require an assessment be paid off, and some allow buyers to assume the <br />assessment. The Administrator noted that the particular unit in question <br />may sell for $40,000 and have an assessment of over $20,000. The buyer <br />cannot finance the $60,000 to cover the purchase price and the assessment. <br />Therefore, has asked that the assessment be spread over property taxes for <br />the 13 years remaining on the bond issue. <br />Keis pointed out that putting the deferment on property taxes rather than <br />requiring the assessment be paid off generates interest revenue for the <br />City. Keis felt the 5.75% interest rate was a good investment. The <br />Administrator agreed, but pointed out that where interest rates will be in <br />the future in unknown. Blesener pointed out that it might be feasible <br />approve requests to spread a deferral over the remaining life of the bond <br />until the bond term is 10 years or less. After that point, the payments <br />would be very high. The Administrator agreed, noting that requests made <br />in the next 3 years might be feasible to accommodate, and the City could <br />re- evaluate this policy after that point. <br />Keis noted that interest accrues on the deferment, and after a number of <br />years, the assessment may out value the unit. The Administrator indicated <br />that assessments take a primary position for payment when a unit sells. <br />Blesener indicated his support for spreading these deferred assessments to <br />property taxes if so requested. The City Administrator suggested that if <br />the policy is amended to do so, he would send a letter to Canabury Square <br />property owners informing them of this change. Keis agreed. <br />Mr. Blesener introduced the following resolution and moved its adoption: <br />RESOLUTION NO. 2011 -8 -150 — AMENDING THE CANABURY <br />SQUARE DEFERRED ASSESSMENT POLICY TO INCLUDE THE <br />OPTION OF ALLOWING DEFERRALS TO BE SPREAD TO <br />PROPERTY TAXES FOR A TERM EQUAL TO THE REMAINING <br />LIFE OF THE BOND ISSUE, AT THE REQUEST OF THE <br />PROPERTY OWNER, WITH THE INDICATION THAT THIS <br />POLICY WILL BE REVIEWED AT THE TIME THAT THE BOND <br />ISSUE TERM IS UNDER TEN YEARS <br />The foregoing resolution was duly seconded by McGraw. <br />Ayes (5). <br />Nays (0). Resolution declared adopted. <br />7 <br />