Notice of Proposed Ordinance Deferred Assessment
NOTICE OF PROPOSED ORDINANCE
YOU ARE HEREBY NOTIFIED that the Paynesville City Council is considering the following proposed Ordinance at 6:00 p.m. on November 9, 2020 at their Regular City Council meeting:
ORDINANCE NO. 20, 3RD SERIES
AN ORDINANCE OF THE CITY OF PAYNESVILLE, MINNESOTA, AMENDING CITY CODE CHAPTER 26 ENTITLED “SPECIAL ASSESSMENTS”, AND SPECIFICALLY SECTION 26-7 ENTITLED “GENERAL ASSESSMENT POLICIES”, AT SUBPART (i), ENTITLED “DEFERMENT OF ASSESSMENT FOR SENIOR CITIZENS”; AND ADOPTING BY REFERENCE CITY CODE CHAPTER 1 ENTITLED GENERAL PROVISIONS, WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS FOR ORDINANCE VIOLATIONS.
THE CITY COUNCIL OF PAYNESVILLE, MINNESOTA ORDAINS:
Section 1. City Code, Chapter 26, Section 26-7(i), is hereby amended to read as follows:
(i) Deferment of assessments for senior citizens. Pursuant to M.S.A. Sect. 435.193 through 435.195, the City Council may defer special assessments for senior citizens and retired disabled homeowners for assessments levied against homestead property of the criteria set forth in subsections (i)(l) through (4) of this section are met.
(1) Eligibility. Any person 65 years of age or older or retired by virtue of a permanent and total disability, as determined by the Social Security Administration, for whom it may be a hardship to make the payments, may have special assessments levied against real property for public improvements deferred if the following conditions are met:
a. Ownership. The property must be the homestead of the eligible person, and that eligible person must own the property in fee simple, be the contract vendee for fee simple ownership of the property, own the property as trustee of a trust created by the owner for estate planning purposes, or have retained a life estate in the property pursuant to a deed conveying fee title for estate planning purposes.
b. Homestead. The property must be the applicant’s principal place of domicile and classified on the city’s and county’s real estate tax rolls as the applicant’s homestead.
c. Net Income. The applicant’s net income and net income of all other joint tenants, tenants in common or contract vendees in title to the property may not exceed the low income limit as established by the department of housing and urban development as used in determining the eligibility for Section 8 housing.
(2) Interest on deferred assessments. Deferred special assessments shall not be subject to, and shall not be charged interest, during the period of deferment, and no interest shall accrue during the period of deferment. Commencing 60 days following the termination of the deferral status, interest shall accrue at a rate equivalent to the interest rate set for the original improvement project assessment roll. Interest shall accrue until the assessment is satisfied, or as set by the city council. This policy is retroactive to deferred assessments under prior improvement projects.
(3) Termination of deferral status. Special assessments including any accrued interest deferred pursuant to the eligibility requirements set forth by this chapter shall become payable upon the occurrence of one of the following events:
a. Sale of property. The subject property is sold, transferred or subdivided or in any way conveyed to another by the fee owner who has qualified for the deferred status, unless the transfer is a transfer for estate planning purposes, such as a Quit Claim Deed, wherein the party qualified for deferred status transfers the title, but retains a life estate and continues to homestead the property, or a conveyance to a trust wherein the party or parties who were qualified for the exempt status become the owners as trustees and continue to qualify for homestead tax status.
b. Death of owner. The death of the fee owner qualified for deferral status unless a surviving joint tenant, tenant in common or contract vendee is eligible for the deferral benefit provided hereunder.
c. Non-homestead property. The subject property loses its homestead status for any reason.
d. No hardship. The city council determines that there would be no hardship to require an immediate or partial payment of the deferred special assessment.
(4) Filing for deferral status. An eligible participant must apply for the deferment not later than 90 days after the final special assessment roll is adopted by the city council. The deferment shall be granted upon a certification by the applicant on a form prescribed by the county assessor supplemented by the city to establish the qualification of the applicant for such deferment.
Section 2. City Code, Chapter 1, entitled General Provisions, and Sections 1-11 and 1-12 related to penalties for violations are hereby adopted by reference as though repeated verbatim herein.
Section 3. This Ordinance will take effect and be in force upon its passage, adoption and publication.
A copy of said Ordinance is available for review by any person during regular City Hall office hours (8:30 a.m. to 4:30 p.m. Monday – Friday).
Posted this 16th day of October, 2020.