Chapter 3.04
DEFERRED PAYMENT OF SPECIAL ASSESSMENTS
Sections:
3.04.010 Deferred Payment of Assessments.
3.04.015 Financing of Program.
3.04.020 Interest.
3.04.025 Administration.
3.04.030 Appeals.
3.04.035 Termination of Deferment.
3.04.040 Confidentiality.
3.04.045 Lien.
3.04.050 Existing Assessments.
3.04.055 Installment Payment Terms.
3.04.010 Deferred Payment of Assessments.
A. To the extent that City funds are available and the requirements of BC 3.04.010 through 3.04.055 are met, a property owner may request deferred payment of special assessments for local improvements levied by the City.
B. To be eligible for a deferment, the applicant must meet guidelines adopted by Council resolution.
C. The property owner shall file an application to pay the assessments in installment payments pursuant to the Bancroft Bonding Act and BC 3.02.010 through 3.02.235 or their counterpart; submit an application for deferred payment privileges to the finance director within 30 days after the assessment is entered in the City lien docket or within such time as the finance director may establish; and enter into a contract with the City to pay the assessment when the deferment is terminated.
D. If it appears from the property owner’s application that the property owner would qualify for deferral of special assessments for local improvements under the State of Oregon, Department of Revenue rules or ORS Chapter 311.702 through 311.735, then the finance director may forward the application to the State for deferral.
E. If a property owner cannot meet all the eligibility requirements established by the Council, the property owner may apply for a special one-year deferment according to any requirements established by Council resolution.
F. A special deferment granted pursuant to subsection E shall commence on the date of timely application and shall terminate one calendar year thereafter, and is subject to all the terms and conditions of BC 3.04.010 through 3.04.055. Failure of the property owner to receive notice for any reason shall not constitute a defense or otherwise invalidate a suit, action or other legal proceeding to collect delinquent assessments in a court of competent jurisdiction.
3.04.015 Financing of Program.
A. There is hereby created a fund, to be known as the local improvement assistance fund, to be used for the payment of construction costs or for the retirement of debt incurred by the City in connection with local improvement projects on which the payment of assessments has been deferred under BC 3.04.010 through 3.04.055.
B. The initial funds for the local improvement assistance fund shall consist of an amount not to exceed 20 percent of the assets of the City’s assessment fund that are not directly committed for the ensuing fiscal year. The local improvement assistance fund shall be replenished from time to time by interest payments on deferred accounts, payments made when deferments are terminated and by additional revenue from the assessment fund.
C. Deferments shall be granted on a first come, first served basis during each year to the extent that funds are available in the local improvement assistance fund. At no time shall outstanding assessment payment deferrals exceed 20 percent of the uncommitted assets of the City’s assessment fund.
3.04.020 Interest.
Interest shall accrue at the same rate applicable to installment payments of special assessments under the Bancroft Bonding Act (ORS Chapter 223.205 through 223.300) and BC 3.02.095. The interest shall accrue on the unpaid balance of any assessment for which payment has been deferred under BC 3.04.010 through 3.04.055. The interest shall be paid semi-annually during the deferment period; except that a property owner who has been granted a deferment and whose income does not exceed the income level specified in may defer BC 3.04.010, subsection B3, payment of interest in the same manner as the assessment principal.
3.04.025 Administration.
A. The finance director shall be responsible for the administration of BC 3.04.010 through 3.04.055 and may:
1. adopt reasonable rules and regulations relating to any matter pertaining to the administration of BC 3.04.010 through 3.04.055;
2. prepare and make available all necessary forms;
3. as frequently as necessary, make an investigation, including a review of all available records relating to income of property owners for which a deferment has been allowed, to ascertain that the property owner continues to meet the eligibility requirements.
B. The contract required under BC 3.04.010 shall be in a form satisfactory to the city attorney; shall be binding on the heirs, successors and assigns to whom ownership of the property may be transferred; and may be recorded in the official records of Washington County, Oregon. The finance director is hereby authorized to execute such contracts on behalf of the City.
C. In determining eligibility, the finance director shall follow the requirements of BC 3.04.010 and Council resolution.
D. The finance director shall notify the applicant for a deferment in writing of the finance director’s decision.
3.04.030 Appeals.
Any person aggrieved by a decision of the finance director under BC 3.04.010 through 3.04.055 may appeal it to the Council by serving, within ten days after the date of the notice containing the decision, a notice of appeal in writing on the city recorder specifying the grounds for objection to the decision. The Council shall consider the matter and may sustain, modify or reverse the decision of the finance director.
3.04.035 Termination of Deferment.
A deferment shall be terminated if:
A. The property owner defaults in the performance of the terms and provisions of the owner’s contract with the City.
B. Maximum eligibility requirements for income are exceeded.
C. Fee title and/or possessory interest in the property is transferred by any means to a person other than the person’s spouse.
D. The property owner fails to comply with any rule or regulation adopted under BC 3.04.010 through 3.04.055; refuses to provide information to or hinders any investigation by the finance director into the continued eligibility of the property owner for a deferment; or willfully makes any false or misleading statement in order to obtain or retain a deferment; or receives benefits under BC 3.04.010 through 3.04.055 with knowledge that the owner does not qualify for such benefits.
3.04.040 Confidentiality.
To the maximum extent possible under the law, the applications, records and other information relating to deferments shall be kept confidential by the City.
3.04.045 Lien.
Any assessment for which payment is deferred under BC 3.04.010 through 3.04.055 shall continue to be a lien on the affected property, notwithstanding the granting of a deferment. If the deferment is terminated, the lien may be enforced as though no deferment had ever been granted.
3.04.050 Existing Assessments.
The deferral privileges authorized by BC 3.04.010 through 3.04.055 for future special assessments are extended to those property owners for assessments levied prior to November 4, 1974.
3.04.055 Installment Payment Terms.
The allowance of deferment under BC 3.04.010 through 3.04.055 shall have no effect on the number of installment payment periods or term of payment permitted under the Bancroft Bonding Act or BC 3.02.010 through 3.02.235 as they are now or hereafter constituted or amended. Each installment payment shall accrue at each successive payment period as though no deferment had been granted.