Agenda Packets - 1995/06/26 - Laserfiche WebLink

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Page 15 SECTION IV - ASSESSMENT CONDITIONS A. Terms of Assessment. The term of special assessments shall normally be for a ten (10) year period. However, in some cases the project costs could warrant either shorter or longer terms. Some major reconstruction projects where several types of improvements are involved could lead to a very high assessment which could create a financial hardship if assessed for a ten (10) year term. A twenty (20) to thirty (30) year term may be appropriate in this case. In any event, the assessment term should never exceed the potential life of the improvement. B. Interest Rate. The interest rate charged on assessments for all projects financed by debt issuance shall be two percent (2%) greater than the net interest rate of the bond issue or debt used to finance the improvement, or the general rate of interest available to the City for municipal borrowing if the project is funded internally. This is necessary in order to ensure adequate cash flow when the City is unable to reinvest assessment prepayments at an interest rate sufficient to meet the interest cost of debt or when the City experiences problems of payment collection delinquencies. Interest on initial special assessment installments shall begin to accrue from the date of the resolution adopting the assessment. Owners must be notified by mail of any changes adopted by the City Council regarding interest rates or prepayment requirements which differ from those contained in the notice of the proposed assessment. C. Payment Procedures. The property owner has five available options when considering payment of assessments: 1. Tax Payment. If no payment is undertaken by the property owner, then special assessment installments will appear annually on the individual's property tax statement for the duration of the assessment term. 2. Full Payment. No interest will be charged if the entire assessment is paid within 30 days of the date of adoption of the assessment roll. 3. Partial Payment. The property owner has a one-time opportunity to make a partial payment reduction of any amount against his/her assessment. This option may only be exercised within the 30-day period immediately following adoption of the assessment roll.