Agenda - Council Work Session - 11/18/2014

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RELEVANT LINKS: Minn. Stat. § 429.061, subd. 3. Minn. Stat. § 429.061, subd. 3. See Section II-G-3-a: Council decides interest on special assessments. Minn. Stat. § 462.353, subd. 5. Minn. Stat. § 429.051. Minn. Stat. § 429.052. • either pay the total amount of their assessment immediately, or • pay the assessments in annual installments (with interest) under the terms set by the council. Alternatively, the property owner can: • Pay the entire amount of the assessment within 30 days after the council adopts the assessment rolls. In this situation, the city cannot charge any interest. • Pay the entire amount at any time after 30 days, but before any certification to the county auditor. The property owner pays only the amount of interest accrued as of the date of payment. • At any time after the certification, the property owner may still pay the entire remaining unpaid amount to the county treasurer. However, the property owner must pay the entire remaining unpaid amount of the assessment before Nov. 15 of any year, and must also pay all interest accrued until the end of that calendar year. The council may authorize, by ordinance, partial prepayment of assessments prior to certification to the county auditor. If the property owner elects not to pay the entire amount of the assessment at once, he or she may pay it in annual installments spread over the number of years the council has allowed. As noted previously, postponement of payment may require city borrowing to pay for the improvement so the city must add an interest charge to each year's assessment payment. As an added collection tool, a city may require payment of all delinquent assessments before granting a building permit, a conditional use permit, variance, or a zoning change. The city must notify residents of this requirement in an ordinance or in the application materials used to request such a change or permit. B. Postponed assessments Postponed assessments occur when a city pays the cost of a local improvement, and delays assessing one or more benefited properties. Postponed assessments are not generally a good idea as they are not liens against the property and the city may not recoup what has already been spent on a project. If a city wishes to eventually reimburse itself for improvement costs by applying postponed assessments, those assessments may only be collected if 1) the property was not previously assessed for the project, and 2) the property owners were provided notice and hearing at the same time as those whose assessments were not postponed. A successful appeal of the assessment leaves the city with less money to pay for the completed project. League of Minnesota Cities Information Memo: 9/22/2011 Special Assessment Guide Page 25