(A) Deferment of special assessments outside of corporate limits. If the city installs utility facilities which benefit property which lies outside the corporate limits, that area and the allocable costs shall be included in the original public hearing for the improvement. The city may attempt to negotiate a contract with the property owner of the property lying outside the city which will provide for payment to the city on the same basis as if the property were within the city and to be assessed for the improvement as a prepayment upon completion of the project. If such a contract cannot be executed, the city will assume the temporary responsibility for payment of the cost allocable to the property lying outside the city limits. In that event, the original principal amount of the assessment, if it had been assessed, plus accumulated interest, shall be increased annually by a percentage to be determined by Council up to a maximum of 15 years for which no payment is made. At the time of annexation of the property to the city, a subsequent public hearing may be held for that property and an assessment roll prepared, adopted, and certified to the County Auditor, payable at the same rate and terms except for the total amount as were applicable to other property owners included in the original assessment. The city shall reserve the right to delay the assessment of benefit for facilities previously installed and to make such assessment at the same time it causes to be constructed other public improvements on the property following its annexation. When property lies outside the city limits, no physical connection to the city’s utility or drainage system will be permitted until a utility agreement and contract, including satisfaction of costs or assessments, is executed.
(B) Deferment of special assessment for senior citizens.
(1) Criteria. In determining whether or not a senior citizen is eligible for deferral of special assessment installment payments, the following criteria are established.
(a) Senior citizens special assessment hardship deferral applies to special assessments levied after the date of the adoption of this chapter.
(b) Senior citizens special assessment hardship deferral applies to qualifying special assessments against all properties classified as homestead pursuant to M.S. Chapter 273, as it may be amended from time to time, where one or more of the owners of such property is 65 years of age or older and it would create a hardship for the owner or owners of the property to pay the special assessment installments as they become due.
(c) It shall be presumed that a hardship exists if:
1. The person is at or below the federal poverty level; and
2. All owners of the property verify, under oath, that they meet the criteria for establishing a hardship by completing an application provided by the city.
(d) In cases where exceptional and unusual circumstances exist, the City Council may determine that a hardship exists despite the fact that the minimum income requirements of this section are not met; such cases shall be decided by the Council on a case by case basis.
(2) Interest. Interest shall be charged on any assessment deferred pursuant to this chapter at a rate equal to the rate charged on other assessments for the particular public improvement project the assessment is financing.
(C) When deferred. The deferment shall be granted upon a certification by the owner on a form prescribed by the County Assessor supplemented by the Administrator to establish the qualification of the owner for such a deferment. The application shall be made within 30 days after the adoption of the assessment roll by the Council and shall be renewed each following year upon the filing of a similar application not later than May 31. The Council shall either grant or deny the deferment and, if it grants the deferment, it may require the payment of the interest due each year. If the Council grants the deferment, the Administrator shall notify the County Auditor and the County Assessor who shall, in accordance with M.S. § 444.23, as it may be amended from time to time, record a notice of the deferment with the register of deeds setting forth the amount of the assessment.
(D) When deferment ends. 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 one of the following events:
(1) The death of the property owner 65 years of age or older, providing the surviving owner is otherwise not eligible for deferment;
(2) The sale, transfer, or subdivision of all or any part of the property;
(3) Loss of homestead status on the property;
(4) Determination by the Council for any reason that there would be no hardship to require immediate or partial payment;
(5) Failure to file a renewal application within the time prescribed by this section; or
(6) At the request of the property owner.
(E) Procedure for termination. Upon the occurrence of one of the events specified in this section, the Council shall terminate the deferment. Thereupon, the Administrator shall notify the County Assessor and the County Auditor of the termination, including the amounts accumulated on unpaid installments plus applicable interest which shall become due and payable as a result of the termination.
(Prior Code, § 94.06) (Ord. 206, passed 4-14-1997)