Requirements and procedures for the deferral of sewer connection and collection sewer charges shall be in accordance with the following:
A. Eligibility. The developer of any property whose connection charge, if any, exceeds the sum of $5,000 shall be eligible to apply to pay the charges for that property in installments on a schedule appended to this section as Table I, below; provided, however, that if the collection sewer charge is payable by the city to someone other than the city, pursuant to an agreement between the city and that person to reimburse the person for all or a portion of the cost of constructing a sewer line extension, the collection sewer charge shall not be eligible to be paid in installments, nor shall it be considered in determining whether the connection charge is eligible to be paid in installments. The city reserves the right to reject any application for deferral of the connection charge.
B. Application. Any eligible developer of property desiring deferral of the payment of the connection charge shall, at the time of application for connection, submit to the city an application requesting deferral on a form provided by the city.
C. Title Report. Upon receipt of an application, the applicant shall order a preliminary title report from a title insurance company doing business in Clackamas County, Oregon.
D. Lienholders. The applicant, at his or her expense, shall furnish the city with a current statement of amounts due to each lienholder disclosed by the preliminary title report of the title insurance company, and for property proposed for improvement, an MAI appraisal certified by the appraiser as to the estimated fair market value upon completion of the proposed improvement. The applicant shall answer questions as the city deems proper regarding the applicant’s ability to pay the deferred connection charge and any other lienholder regarding applicant’s payment history.
E. Appraisal. If, upon examination of the title to the property and the appraisal report, the city is satisfied as set out in the following divisions 1. and 2., the applicant shall execute a mortgage in the form appended to this chapter as Appendix A and the city shall issue a connection permit. This lien shall be enforced in the manner provided by O.R.S. Chapter 223:
1. That the total unpaid amount of all liens disclosed, together with the amount of connection charge sought to be deferred, does not exceed the appraised value of the property as determined by the current appraisal of the County Assessor; or if the city elects, based upon the appraisal or other evidence of value acceptable to the city, the total unpaid amount of all liens disclosed, together with the amount of the connection charge sought to be deferred, does not exceed the estimated fair market value of the property when the proposed improvement is completed; and
2. That the applicant can execute a mortgage covering the property which will be a valid lien on the fee thereof.
F. Evaluation of Value. If the city determines that the amount of connection charge, together with all other unpaid liens, exceeds the appraised value or anticipated appraised value of the property, or that the applicant cannot execute a mortgage which will be a valid lien, or that the applicant cannot make the required payments, it shall so advise the applicant.
G. Due and Payable. The deferred connection charge shall be due and payable January 1 and July 1 of each year together with interest on deferred principal balances at the rate of 10% per annum, which interest shall be the full and only compensation to the city for its administrative costs. Interest shall be paid in addition to each principal payment on the dates the principal payments are made. If the applicant is approved for a deferred payment schedule, a minimum of $1,200 shall be paid immediately upon connection to the sewer. The remaining balance of the initial assessment shall then be computed into equal semiannual payments, per schedule set forth in Table I, with the first payment due 6 months after the initial connection.
H. Table I. The following schedule shall apply to deferred payment for sewer connection charges:
Table I | |
Amount to be Financed (Initial Assessment) | Maximum Amount of Semi-annual Payments |
$5,000 - $10,000 | 14 |
$10,001 - $15,000 | 16 |
$15,001 - $20,000 | 18 |
over $20,000 | 20 |