HomeMy WebLinkAbout2.c. Special Assessment DeferralsAGENDA ITEM: Special Assessment Deferrals
AGENDA SECTION:
PREPARED BY Andrew J. Brotzler, P.E., City Enginee •k
It
AGEND
ATTACHMENTS: Minnesota Statute, Sample Ordinances
and Deferral Applications
APPROVED BY:
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RECOMMENDED ACTION: Provide direction to staff.
?S ROSE_M0LINT
BACKGROUND:
SUMMARY:
CITY COUNCIL
City Council Work Session: May 24,2006
At last years assessment hearing for the 2005 Pavement Management Project and during other project
discussions, Council has inquired about the ability of a property owner to qualify for a payment deferral of
special assessments As previously noted, Minnesota statute does include provisions for Cities to consider
the deferral of special assessment payments to "a person 65 years of age or older or retired by virtue of a
permanent and total disability for whom it would be a hardship to make the payments."
Attached is a copy of the Minnesota statute. As noted, should Council choose to consider special
assessment deferrals in the future, an ordinance would need to be developed to estabhsh the parameters
for determining a hardship. Also attached are copies of ordinances and application forms obtained from
the Cities of Rochester, Robbmsdale, Champhn and Brainerd
Staff is requesting Council direction on this matter.
EXECUTIVE SUMMARY
G \DEFERRED ASSESSMENT \Assessment Deferral CWS 5-24-06 doc
Message Page 1 of 2
Brotzler,Andy
From: LeFevere, Charlie L [clefevere @Kennedy- Graven com]
Sent: Friday, May 05, 2006 11 47 AM
To: Brotzler,Andy
435.193 Hardship assessment deferral for seniors or
disabled.
Notwithstanding the provisions of any law to the contrary,
any county, statutory or home rule charter city, or town, making
a special assessment may, at its discretion, defer the payment
of that assessment for any homestead property owned by a person
65 years of age or older or retired by virtue of a permanent and
total disability for whom it would be a hardship to make the
payments. Any county, statutory or home rule charter city, or
town electing to defer special assessments shall adopt an
ordinance or resolution establishing standards and guidelines
for determining the existence of a hardship and for determining
the existence of a disability, but nothing herein shall be
construed to prohibit the determination of hardship on the basis
of exceptional and unusual circumstances not covered by the
standards and guidelines where the determination is made in a
nondiscriminatory manner and does not give the applicant an
unreasonable preference or advantage over other applicants.
HIST: 1974 c 206 s 7; 1976 c 195 s 3; 1981 c 80 s 1
435.194
435.194 Procedure to obtain deferred assessment.
The homeowner shall make application for deferred payment
of special assessments on forms prescribed by the county auditor
of the county in which the homestead is located. Where the
deferred assessment is granted, the auditor shall record a
notice thereof with the county recorder of said county which
shall set forth the amount of the assessment. The taxing
authority may determine by ordinance or resolution the amount of
interest, if any, on the deferred assessment and this rate shall
be recorded by the auditor along with and in the same manner as
the amount of the assessment.
HIST: 1974 c 206 s 8; 1976 c 181 s 2; 1976 c 195 s 4
=435.195
05/15/2006
Message Page 2 of 2
435.195 Termination of right to deferred payment.
The option to defer the payment of special assessments
shall terminate and all amounts accumulated plus applicable
interest, shall become due upon the occurrence of any of the
following events: (a) the death of the owner, provided that the
spouse is otherwise not eligible for the benefits hereunder, (b)
the sale, transfer or subdivision of the property or any part
thereof; (c) if the property should for any reason lose its
homestead status; or (d) if for any reason the taxing authority
deferring the payments shall determine that there would be no
hardship to require immediate or partial payment.
HIST: 1974 c 206 s 9
Charles L LeFevere
Kennedy and Graven, Chartered
470 U S Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
Telephone (612) 337 -9215
Fax (612) 337 -9310
clefevere @ken ned�c� raven.com
05/15/2006
CITY OF ROBBINSDALE
REQUEST FOR DEFERRAL OF SPECIAL ASSESSMENT
The Robbinsdale City Council, at its regular meeting of April 5, 1977, approved a
resolution that gives senior citizens and persons for whom it would be a hardship to make
the payments the option of deferring special assessments until:
1. The property or any part thereof is sold, transferred, or subdivided.
2. Death of the owner and the spouse is not otherwise eligible.
3. The property loses its homestead status.
4. The owner is no longer determined to be in a hardship category.
Eligibility requirements:
The owner must be 65 years or older on January 1 of the payment year.
The annual pnncipal and interest on an assessment is in excess of 1 -1/2% of the
owner's income. (For example, if the pnncipal and interest is $100 annually, then
an owner whose income is less than $6,667 would qualify to have the assessments
deferred (i.e. $6,667 x .015 $100).
"Interest will be added annually to the deferred amount based upon the city's annual rate
of interest.
The current rate of interest for year is annually.
Applicants who wish to apply for a deferment of assessments due in year must
supply the following no later that October 15 the preceding year to:
City of Robbinsdale City Clerk's office
4100 Lakeview Avenue North, Robbinsdale, MN 55422
1. Financial Disclosure Statement, including a copy of your proof of income.
2. A copy of your birth certificate(s).
4
3. Four (4) Notanzed copies of Form HC 227 Application for Deferral of
Special Assessments.
After your application has been received and reviewed, your request will be forwarded to
the Robbmsdale City Council for approval. Upon Council's recommended approval, the
City Clerk will authorize the deferral and forward the request to the Hennepin County
Auditor and recorded in the Register of Deeds office.
For further information, please contact the City Clerk Office at 763 537 -4534.
DEFERRED ASSESSMENTS
CITY OF BRAINERD
APPLICATION AND AUTHORIZATION FOR DELAYED PAYMENT OF TAX ON SPECIAL ASSESSMENT FOR
SENIOR CITIZENS OR DISABLED PERSONS HOMESTEAD MS.435.193, MS.435.194 AND/OR WHERE A FLNANCIAL
HARDSHIP EXISTS RESOLUTION NO. 25:99.
TO. Daniel J Vogt, City Admuustrator /Clerk Treasurer, City of Brainerd, Minnesota
NAME
ADDRESS
I am (check one)
At least 65 years of age
Retired by virtue of a total or permanent disability
Financial hardship exits
R.E. CODE OF PROPERTY.
LEGAL DESCRIPTION OF PROPERTY:
I, the undersigned, declare under penalties of perjury:
That I, my spouse and family combined shall not have an annual gross income in excess of the low income lints established by the
Housing and Redevelopment Authority of the City of Brainerd in effect at the time of the application (see attached).
That the special assessments to be deferred exceed $300.00.
That my total assets mcludmg my spouse's exclusive of the homestead do not exceed $25,000.00.
That the Crow Wing County Assessor's estunated market value of my homestead is less than $100,000.
That my interest in the ownership of the above property was acquired on and is as follows (check
one):
Sole ownership
Joint tenancy, held with
Other (specify)
That on January 2, 20 or June 1 20 owned and occupied the above property as my homestead and such occupancy began
on
That the taxes for improvements on the special assessments adopted by Resolution No. on 20 by
the City of Brainerd which have been allocated against the subject property would create undue personal hardship on my behalf and I
respectfully request that payment be so deferred for the installments payable in the year 20 (NOTE Application for deferment
shall be made each year
I declare under penalties of perjury that the above information is correct to the best of my knowledge and belief:
Signed
Owner
I, Daniel J. Vogt, City Admuustrator /Clerk Treasurer of the City of Brainerd, Crow Wing County, State of Minnesota, do hereby
certify that the application of above named, has been duly
reviewed and that in accordance with the nunutes of official record for the meeting held 20 in
said city council chambers, was duly APPROVED or DENIED
That m accordance with approval granted, that the assessment on the affiant's subject property levied for annual collection composed
of principal S and interest, which is based on the unpaid principal balance payable m the year
should be so deferred with interest at the annual rate of until such time as it is deemed the applicant no longer qualifies
or the property loses its eligibility
Date: 20
City Administrator /Clerk- Treasurer
RESOLUTION
NO. 06:05
WHEREAS, Minnesota Statutes 435.193 through 435.195 authorizes the City of
Brainerd to defer the payment of special assessments against any homestead property for
certain citizens, and
WHEREAS, said deferment of assessment may be permitted at the discretion of the City
Council; and
WHEREAS, the City Council of the City of Brainerd finds and determines that deferral of
special assessments for certain citizens is in the public interest; and
WHEREAS, it is necessary and proper that the City Council set forth its general policies
and guidelines for granting said deferrals of special assessments for citizens.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF BRAINERD,
MINNESOTA:
1. That the City Council does endorse the principle of deferment of special
assessments for citizens where the payment of said special assessments constitutes
hardship.
2. The Council, in accordance therewith, may defer the payment of any special
assessment on homestead property when payment of the assessment would create
a hardship upon the property owner as defined herein.
3 The deferment may be granted upon an application by the owner on a form
prescribed by the County Auditor supplemented by the City Administrator to establish
the qualifications of the owner for said deferment. All deferments shall be subject to
renewal each following year upon the filing of a similar application not later than
August 15 The Council shall either grant or deny the deferment, and if it grants the
deferment, the deferred assessment shall bear interest at the rate established in the
Resolution adopting the assessment If the Council grants the deferment, the City
Administrator shall notify the County Auditor who shall, in accordance with Minnesota
Statute 435.194, record a notice of the deferment with the County Recorder setting
forth the amount of the assessment.
4. A hardship shall be deemed prima facie to exist when all of the following apply:
A. The applicant's spouse and family combines shall not have an annual gross
income in excess of the low income limits established by the Housing and
Redevelopment Authority of the City of Brainerd in effect at the time of
application All data necessary to confirm applicant's income shall be
furnished to the City Administrator
B. The special assessments to be deferred exceed $300 00
C. The total assets of the applicant and spouse, exclusive of the homestead, do
not exceed $25,000.00.
D. The Crow Wing County Assessor's estimated market value of the applicant's
homestead is less than $100,000.
Notwithstanding the foregoing provisions of this paragraph, the City Council may
consider exceptional and unusual circumstances pertaining to an applicant not covered by the
above standards; but any determination shall be made in a non discriminatory manner and shall
not give the applicant an unreasonable preference or advantage over the other applicants.
5. Retirement by reason of permanent and total disability shall be deemed prima facie
to exist when the applicant presents a sworn affidavit by a licensed medical doctor
attesting that the applicant is unable to be gainfully employed because of a
permanent and total disability.
6. The option to defer the payment of special assessments shall terminate and all
amounts accumulated plus applicable interest shall become due upon the
occurrence of any of the following events.
A. The death of the owner when there is no spouse who is eligible for
deferment,
B. The sale, transfer, or subdivision of all or any part of the property;
C. Loss of homestead status on the property;
D. Determination by the Council for any reason that there would be no hardship
to require immediate or partial payment; or
E. Failure to file a renewal application with the time prescribed by Paragraph 3.
7. This Resolution supersedes Resolution No. 25:99 adopted on June 21, 1999.
Adopted this 22n day of February, 2005.
Approved this 23r day of February, 2005
ATTEST:
DANIEL
City Ad in
President of the Council
MES E. WALLIN
Mayor
Council member Uglem introduced the following resolution and moved its adoption:
RESOLUTION NO. 2006 -25
RESOLUTION PROVIDING FOR THE DEFERMENT OF SPECIAL
ASSESSMENTS FOR PERSONS 65 YEARS OF AGE OR OLDER OR PERSONS
RETIRED BY VIRTUE OF A PERMANENT AND TOTAL DISABILITY FOR
WHOM IT WOULD BE A HARDSHIP TO MAKE THE PAYMENTS
WHEREAS, the Champlin City Council is the official government body of the
City of Champlin, and
WHEREAS, Minnesota Statute 435 authorizes, upon proper application, to
defer the payment of special assessments against a homestead property owned by any
person 65 years of age or older or a person retired by virtue of a permanent and total
disability on January 1 of the payment year and for whom it would be a hardship to
make the payments, and
WHEREAS, the City Council has determined that deferrals under Minnesota
Statute 435 will be allowed only on homesteaded parcels occupied by the applicant,
and
WHEREAS, Minnesota Statutes authorize the municipality to establish an
interest rate to be added to the deferred assessment which shall be payable in addition
to the deferred assessments, and
WHEREAS, the City Council has determined that the deferral of assessments
should be granted to any person otherwise qualified who shall make proper application
claiming that the annual principal and interest due on an assessment is in excess of
three (3) percent of his current annual income and, therefore, a hardship. The proper
application form shall be provided by the City. Any homestead parcel, regardless of
value, shall qualify, and
WHEREAS, the City Council has determined that a person retired by virtue of
a permanent and total disability must qualify the 3CC classification for property tax
purposes, and
NOW, THEREFORE, BE IT RESOLVED by the City Council of Champlin,
Minnesota that special assessments against any homestead property owned and
occupied by a total disability for whom it would be a hardship to make the payment be
deferred subject to the aforementioned conditions upon submission of the appropriate
application signed by the qualified person.
FURTHER BE IT RESOLVED that:
1. An interest rate be applied to the principal and interest of the
assessment to be deferred and shall be payable in accordance with the
terms and provisions of Minnesota Statutes This interest rate shall not
apply to the interest of the deferment but only to the pnncipal and
interest of the assessment and shall be at the same rate as the rest of the
improvement project.
2. The nght of deferment is automatically terminated as provided under
Minnesota Statutes.
3. Application for deferments for a particular year must be submitted by
November 1 of the preceding year.
4. This resolution rescinds Resolution No. 99 -25, dated April 26, 1999.
5. A copy of the current Minnesota Statutes relative to deferred
assessments for persons 65 years of age or older or persons retired by
virtue of a permanent and total disability is made a part of this
resolution by reference.
The motion for the adoption of the foregoing resolution was duly seconded by
Councilmember Payer, and upon vote being taken thereon, the following voted in
favor thereof: Mayor Boynton, Council members Payer, Swenson, Uglem and
Whalen, the following voted against the same: no one, whereupon said resolution was
passed this 23rd day of January, 2006.
ATTEST:
Roberta Colotti
City Clerk
Steven E. Boynton, Mayor
At
Maple Grove None None
Jenny
763 494 6000
Plymouth None None
Sheila Scholtz
763 506 5000
December 13, 2005
SENIOR CITIZEN AND HANDICAPPED DEFERRAL
PROGRAM SURVEY
INCOME LIMITATION
CITY LIMITATION ON HOME VALUE COMMENTS
Brooklyn Park None None Removed caps
Diane Deblon in 2004
763 493 8000
Burnsville $25,000 None Assets, excluding
Elaine home, must not
952 895 4495 exceed $60,000.
Total assessment
must exceed $400
or 3% gr oss
income.
RESOLUTION
WHEREAS, Minnesota Statutes Sections 435.193 through 435.195 authorize a city to
adopt standards so as to allow the deferment of the payment of assessments for any homestead
property owned by a person 65 years of age or older or retired by virtue of a permanent and total
disability for whom it would be a hardship to make the payments; and,
WHEREAS, the City of Rochester wishes to avail itself to the process of deferred
assessments; and,
WHEREAS, the City of Rochester desires to establish the standards and guidelines for
determining the existence of a hardship and for determining the existence of a disability.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Rochester that, pursuant to Minnesota Statutes Sections 435.193 through 435.195, the City
does hereby establish a policy for the deferment of the payment of assessments for any
homestead property owned by a person 65 years of age or older or retired by virtue of a
permanent and total disability for whom it would be a hardship to make the payments.
BE IT FURTHER RESOLVED by the Council that the following standards and
guidelines are established in implementing the deferment policy:
1. The income threshold for eligibility of those applicants 65 years of age and older
or disabled be established by the most recent U.S. Census Bureau Poverty
Threshold compilations. Income eligibility would be determined by the submittal
of the most recent federal tax filing form.
2. Eligibility for a permanent or totally disabled status be determined by a statement
by a medical doctor attesting to that fact or by submittal of a copy of a social
security disability certification.
3. Interest, in the amount assessed against other properties in the assessment
project, be charged against the outstanding deferred assessment amount until
the assessment is paid.
4. The deferral of assessments can only apply to an individual's homestead
property.
5. The deferment is terminated and all accumulated amounts, plus interest,
become payable upon any of the following:
A. The death of the owner (if a surviving spouse is not eligible for the
deferment).
ATTEST: 1 1/ /t 4 sa
flepusy CI r •LEI
APPROVED THIS
B. The sale, transfer or subdivision of any part of the property.
C. The loss of homestead status of the property.
D. A determination by the Common Council that requiring immediate or
partial payment would no longer impose a hardship.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS )&ph D Y OF 2005.
(Seal of the City of
Rochester, Minnesota)
Res051Resolu.DefASSess
174 {'DAY OF
PRESIDENT OF SAID COMMON COUNCIL
C ay 2005.
MAYOR OF SAID CITY