(A) Special assessments for improvements to homestead property when payment of the assessment would create a hardship upon the property owner, as defined in division (B) below, may be deferred. The deferment shall be granted upon a certification by the owner on a form prescribed by the County Auditor of Faribault County, Minnesota, supplemented by the City Administrator-Clerk-Treasurer of Wells, Minnesota, to establish the qualification of the owner for the deferment. The application for the deferment shall be made within 30 days after the adoption of the assessment roll by the City Council, and shall be renewed each following year upon the filing of a similar application not later than September 30. The Council shall either grant or deny the deferment, and if it grants a deferment, it shall require the payment of interest due each year. If the Council grants the deferment, the City Administrator-Clerk-Treasurer shall notify the County Auditor who shall, in accordance with M.S. § 435.195, as it may be amended from time to time, record a notice of deferment with the County Recorder of Faribault County, Minnesota, setting forth the amount of deferred assessment, and the description of the real estate involved.
(B) A hardship shall be deemed to exist when all of the following apply.
(1) The annual gross income of the homeowner, according to his/her most recent federal income tax return, plus tax exempt income (social security, veteran's benefits, unemployment, and annuities) does not exceed the industry standard. If no income tax return was prepared and filed, the City Administrator-Clerk-Treasurer shall require the applicant to submit other pertinent information to show that this qualification is met.
(Am. Ord. 204, passed 9-15-1986; Am. Ord. 219, passed 8-5-1991)
(2) The applicant's total assets, exclusive of the value of the homestead, do not exceed the industry standard.
(3) The applicant has not made a transfer of a material part or portion of his/her assets within 3 years preceding the date of the application for special assessment deferral.
(C) The deferment of payment of special assessments shall terminate, and all amounts, plus accrued interest, if any, shall become due upon the occurrence of any 1 of the following events:
(1) The death of the owner when there is no spouse who is eligible for deferment;
(2) The sale, transfer, of subdivision of all or any part of the homestead property;
(3) The 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 of the special assessment; or
(5) Failure to file a renewal application within the time prescribed in division (A) above.
(D) Upon the occurrence of 1 of the events specified in division (C) above, the City Council shall terminate the deferment. Thereupon, the City Administrator-Clerk-Treasurer shall notify the County Auditor of Faribault County, Minnesota, of the termination, including the amounts accumulated on unpaid installments plus applicable interest which shall become due and payable as a result of the determination.
(Ord. 197, passed 10-22-1984)