IV.9. Special Assessment Deferral Request – 221 18th Ave. N. – Project No. 2015-10 Street Improvements; Harkess (CR2016-104)October 4, 2016
Pronosed Action.
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Special Assessment Deferral Request
221 18`� Ave N, #23-ll7-22 14 0125
Project No 2015-10 Street Improvements
Council Report 2016-104
Staff recommends that Yhe Council approve the following moYion: Approve the Application for
Deferral of Special Assessment for Mr. Scott Phillips of 221 18`� Avenue N for as lone as he
meets the eligibilitv requirements.
Overview.
The assessment roll for City Project 2015-10, 2016 Street Improvements was adopted by the City
Council on February 29, 2016. City Code Section 703.05 allows for deferment of special
assessments upon request for any homestead property owned by a person who has not attained
the age of 65, but is retired as a result of a permanent and total disability, and it is determined to
be a hardship for said owners to make the payments. The hearing notices mailed to all affected
property owners stated the procedures to apply for such deferment are available from the
Assessment Clerk. It was not necessary to file an appeal at the assessment hearing. Mr. Phillips
has now applied for the deferment.
Mr. Phillips is totally disabled and indicates it is a hardship to pay the special assessment. Mr.
Phillips' 2015 income falls below the income limit set in Section 703.05.
Primarv Issues to Consider.
• Should the City grant the deferment?
SunnortinE Information.
• Application for Deferral of Special Assessment
• Hopkins City Code Section 703 — Procedures for the Collection and Deferment of Special
Assessments
• MN Statutes 438.193 Hardship Assessment Deferral for Seviors, Disabled, or Military
Persons
• MN Statutes 435.195 Termination of Right to Deferred Payment
. � � 1„ x"_ - _
Robin Robertson
Special Assessment Clerk
Council Report 2016-104
Page two
Analysis of the Issues
Should the City grant the deferment?
Mr. Phillips has provided documentation from his physician and also from the Socia] Security
Administration verifying that he is disabled.
Staff recommends granting the deferment. The special assessment of $7,127.39 will be secure
by virtue of a lien against the property. This deferral terminates upon Mr. Phillips' death, sale of
the property, loss of homestead status, or his annual income exceeds the annual income limit.
This deferral musY be renewed annually during the term of the deferment not later than
September 30 of each year.
Alternatives
1. Approve the special assessment deferment of $7,127.39 for Mr. Scott Phillips of 221 18`h
Avenue N, #23-117-22 14 0125.
2. Do not approve the deferment.
Staff recommends alternative # 1.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
Application for Deferral of Special Assessment
I hereby make application for defenal of special assessment this ��day of �,
20� for the following assessment:
Levy #19332 — Proj 2015-10 Street Improvements $7,12739
PID #23-117-22 14 0125 221 18`" Ave N, Hopkins, MN
I understand that this deferral can only be granted on homestead property if my annual income
does not exceed the sum of $29,400.00 as of January 1, 2004 (subject to annual adjustment by
the Consumer Price Index for the Twin City area), that I am 65 years of age or older, or that I am
permanentiy or totally disabled (regardless of age). I also understand that I must supply
verification of my income in the form of my latest Federal Income Tax form, or written income
verification from the Social Security Agency, or a copy of my last Social Security check. In the
case of disability, I must submit verification in the form of a physician's statement.
FurChermore, I understand that I must renew the deferment annually during Yhe term of the
deferment and all required supporting documents or information must be delivered to the City
not later than September 30 of each year. Deferred assessments shall accrue simple interest
during the deferment period at the rate established for payment of assessments at the time the
assessment roll was adopted. Upon failure to renew the deferment certification or upon (a) the
death of the owner, provided that the surviving or successor owner is otherwise not eligible for
the deferment (b) the sale, transfer or subdivision of the property or any part thereof; (c) if the
property should for any reason lose its homestead status; or (d) if for any reason the City shall
determine that there would be no hardship to require immediate or partia] payment the
deferment shall terminate and the City Clerk shall promptly certify to the County Auditor the
amount of the deferred assessmenf including inYerest to be inserted on the tax assessment or in
full if the property was sold or the period of time for repayment of the original assessment has
expired. ��
Scott N Phillips
(Print name)
221 18`h Ave N
(Address of property owner)
Hopkins, MN
(Signature)
r.z, 7a3- � ��
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(Telephone)
55343
Zip
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Subscribed and sworn to before me this � day of �Lf�r�Yl��P�Y� , 20 /(0 .
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Notary Public
Council Action:
Deferral granted Defenal denied Date:
Hopkins CiTy Code
Section 703 - Procedures for the Collection and
Deferment of Special Assessments
(Rev Sept., 2004) 703
703.01 Puroose. Inasmuch as the City feels it necessary and proper to provide for prepayment of special
assessments in whole or in part and to implement a procedure to allow deferment of special assessmen[s
in appropnate instances all as made and provided for in M.S. Section 429.061 and M.S. Section 435.193
through 435.195, the following provisions are hereby authorized.
703.03 Pre-pa�nt. At any time prior to certification of the assessment by the Ciry to the CounTy
Auditor, an owner may pre-pay not less than 25°/a of the assessment with interest accrued to the payment
date, except that no interest shall be chazged if such partial payment is made within 30 days from the
adoption of the assessment. The balance remaining shall be paid in accordance with the schedule adopted
by the CiTy Council or as provided in Minnesota Statute Section 429.061, Subd. 3. (Amended Ord. No.
93-724)
703.05. Deferment of Pavments. Thc City Council may in iu discrction defcr payment of special
assessments upon request for any homestead property owned by a person 65 years of age or older or
retired by virtue of a permanent and total disability in either instance of which the City Council
determines it would be a hardship For said owners to make the payments. Such deferment shall be based
on the property owner demonstrating he or she meets the following standards:
The annual income of owners requesting a deferment is found not to exceed the sum of
$29,400.00 as of January 1, 2004. This amount shall subsequently be adjusted annually
by the Consumer Pnce Index for the Twin City azea;
Property owners who have not attained age 65, but aze retired as a result of a permanent
and total disabiliTy must establish such disabiliry by evidence satisfactory to CiTy
Council;
Deferred assessments shall accrue simple interest during the deferment period at the rate established for
payment of assessments at the time the assessment roll was adopted. The certification of deferment shall
be renewed annually by the owner during the [erm of the deferment and all required supporting
documents or information delivered to [he CiTy not later than September 30 of each year. Upon failure to
renew the deferment certification or upon:
(a) the death of the owner, provided that the surviving or successor owner is otherwise
not eligible for the deferment;
(b) the sale, transfer or subdivision of the property or any part thereof,
(c) if the property should for any reason lose its homestead status; or
(d) if for any reason the City shall determine that there would be no hardship to require
immedia[e or par[ial paymenY, the deferment shall terminate and the City Clerk shall
promptly certify to the County Auditor the amount ofthe deferred assessment
including interest to be inserted on the taac rolls and collected in the period of time
remaining in the original assessment or in full if the property was sold or the period
of time for repayment of the original assessment has expired. (Amended Ord 2004-
931)
(This Section added through Ord. No. 90-683)
Section 703 page �
MINNESOTA STATUTES 2008 435.193
435.193 HARDSHIP ASSESSMENT DEFERRAL FOR SENIORS, DISABLED, OR
MILITARY PERSONS.
(a) Notwithstanding the provisions of any law to the contrary, any county, statutory or home
rule charter city, or town, making a special assessment may, at its discretion, defer the payment of
that assessment for any homestead property:
(1) owned by a person 65 years of age or older or retired by virtue of a permanent and total
disability for whom it would be a hardship to make the payments; or
(2) owned by a person who is a member of the Minnesota National Guard or other military
reserves who is ordered into active military service, as defined in section 190.05, subdivision 56 or
Sc, as stated in the person's military orders, for whom it would be a hardship to make the payments.
(b) Any counTy, statutory or home rule charter city, or town electing to defer special
assessments shall adopt an ordinance or resolution establishing standards and guidelines for
determining the existence of a hardship and for determining the existence of a disability, but
nothing herein shall be construed to prohibit the determination of hardship on the basis of
exceptional and unusual circumstances not covered by the standards and guidelines where
the determination is made in a nondiscriminatory manner and does not give the applicant an
unreasonable preference or advantage over other applicants.
History: 1974 c 206 s 7; 1976 c 195 s 3; 1981 c 80 s 1; 2008 c/54 art 2 s 28
Copyright � 2008 by the Revisor of Sta[u[es, State of Minnesota. All Rights Reserved.
MINNESOTA STATUTES 2008 435.195
435195 TERMINATION OF RIGHT TO DEFERRED PAYMENT.
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 of the
following events: (a) the death of the owner, provided that the spouse is otherwise not eligible for
the benefits hereunder; (b) the sale, transfer or subdivision of the property or any part thereof;
(c) if Che property should for any reason lose its homestead status; or (d) if for any reason the
taxing authority deferring the payments shall determine that there would be no hardship to require
immediate or partial payment.
History: 1974 c 206 s 9
Copyright 0 2008 by [he Revisor of Statules, S[ate of Minnesota. All Righ[s Reserved.