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Page 15 <br />SECTION IV - ASSESSMENT CONDITIONS <br />A. Terms of Assessment. The term of special assessments shall normally be for a <br />ten (10) year period. However, in some cases the project costs could warrant <br />either shorter or longer terms. For example, sidewalk improvements undertaken <br />separately may be assessed for over a five (5) year period because the costs are <br />usually nominal (under $2,000). On the other hand, some major reconstruction <br />projects where several types of improvements are involved could lead to a very <br />high assessment which could create a financial hardship if assessed for a ten <br />10) year term. A fifteen (15) to twenty (20) year term may be appropriate in this <br />case. In any event, the assessment term should never exceed the potential life <br />of the improvement. <br />B. Interest Rate. The interest rate charged on assessments for all projects financed <br />by debt issuance shall be two percent (2%) greater than the net interest rate of <br />the bond issue or debt used to finance the improvement. This is necessary in <br />order to ensure adequate cash flow when the City is unable to reinvest <br />assessment prepayments at an interest rate sufficient to meet the interest cost <br />of debt or when the City experiences problems of payment collection <br />delinquencies. Interest on initial special assessment installments shall begin to <br />accrue from the date of the resolution adopting the assessment. Owners must <br />be notified by mail of any changes adopted by the City Council regarding interest <br />rates or prepayment requirements which differ from those contained in the notice <br />of the proposed assessment. <br />C. Payment Procedures. The property owner has five available options when <br />considering payment of assessments: <br />1. Tax Payment. If no payment is undertaken by the property owner, then <br />special assessment installments will appear annually on the individual's <br />property tax statement for the duration of the assessment term. <br />2. Full Payment. No interest will be charged if the entire assessment is paid <br />within 30 days of the date of adoption of the assessment roll. <br />3. Partial Payment. The property owner has a one-time opportunity to make <br />a partial payment reduction of any amount against his/her assessment. <br />This option may only be exercised within the 30 -day period immediately <br />following adoption of the assessment roll.