(A) Purpose and authority. Occasionally, an owner of private property may be required to unexpectedly remove, repair or replace private infrastructure or appurtenances to private property, such as a private water service line, or to remove a large tree rendered unsafe by storm or disease. Often, such a large and unexpected expense can create a financial hardship on a private property owner. To reduce the effects of that hardship while still protecting public health and safety, the city has created a short-term loan program to aid private property owners with completing certain projects. The Finance Officer is authorized to disburse loans to private property owners within the corporate limits of the city in accordance with this section for the purposes of:
(1) Repairing or replacing a curb stop;
(2) Repairing or replacing a private water service line;
(3) Repairing or replacing a private sewer service line;
(4) Replacing or removing trees located within or affecting the public right-of-way; and
(5) Other corrective action the city may require of an owner of private property for the purposes of maintaining public health and safety.
(Prior Code, § 2-150)
(B) Amounts. No loans shall be made for less than $500. Loans shall only exceed $3,500 with the prior approval of the Common Council.
(Prior Code, § 2-151)
(C) Terms.
(1) The Finance Officer shall develop and maintain a policy, consistent with the provisions of this section, which sets forth:
(a) The payback period in months;
(b) The interest rate of loans;
(c) A loan origination fee;
(d) The payment due date;
(e) The method of payment; and
(f) Any other terms the Finance Officer determines are reasonable and necessary.
(2) The Finance Officer may establish categories of loans based on the amount of the loan and the terms of the loan (such as the payback period in months) may vary between categories. However, the terms of all loans within a single category shall be uniform regardless of the borrower.
(Prior Code, § 2-152)
(D) Security. Loan amounts less than $1,250 shall be unsecured. Loan amounts in excess of $1,250 shall be secured by a mortgage on the real property where the work is performed, which mortgage shall be recorded in the office of the County Register of Deeds. When the loan is paid in full, a satisfaction of mortgage shall be recorded in the office of the County Register of Deeds. The city shall prepare and record any such documents and will pay the costs of recording.
(Prior Code, § 2-153)
(E) Record and delegation of authority. Loans issued shall be documented by a loan agreement signed by the borrower and the Finance Officer. The Finance Officer is hereby authorized to execute loan agreements that comply with the provisions of this section on behalf of and in the name of the city. The Finance Officer is hereby authorized to execute mortgages and satisfactions of mortgage pursuant to the provisions of this section.
(Prior Code, § 2-254)
(Ord. 1243, passed 5-2-2016)