HomeMy WebLinkAboutX-E-01 Resolution Special Assessment Deferral Policy
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: City Administrator Dan Wietecha
Date: January 18, 2022
Item: Special Assessment Deferral Policy
Council Action Requested:
Adopt Resolution Authorizing Deferral of Special Assessments for Senior Citizens, Disabled, or Military
Persons.
Background Information:
State statute authorizes the City to have a written policy which would allow deferral of special
assessments for senior citizens, disabled, and military persons if it would cause a hardship to make
assessment payments. The deferred assessment would be recorded with the county. The City would carry
any deferred costs and collect at some point in the future when the deferment ends.
The deferment ends and all accumulated amounts (plus applicable interest, if any) become due upon the
death of the owner (if the spouse is not otherwise eligible for the deferment); the sale, transfer or
subdivision of any part of the property; loss of homestead status on the property; or the council’s
determination that immediate or partial payment would impose no hardship.
Financial Impact:
The annual impact would depend on the amount and number of any potential deferrals. The assessment
and any applicable interest would be collected at the end of the deferral.
Committee Discussion:
Finance Committee recommended policy December 21, 2021
Attachment:
• Resolution Authorizing Deferral of Special Assessments for Senior Citizens, Disabled, or
Military Persons
X-E-01
RESOLUTION NO. ______
CITY OF HASTINGS
DAKOTA COUNTY, MINNESOTA
A RESOLUTION AUTHORIZING DEFERRAL OF SPECIAL ASSESSMENTS
FOR SENIOR CITIZENS, DISABLED, OR MILITARY PERSONS
WHEREAS, by Minnesota Statutes, Sections 435.193 through 435.195, the City is authorized and
empowered, in its discretion, to defer payment of special assessments against homesteaded property owned
by certain persons who are elderly, disabled or in the military reserves ordered into active military service
and for whom it would be a hardship to make such assessment payments until a particular event occurs;
and
WHEREAS, the City Council deems it desirable and in the best interests of the City and its citizens
to implement such authority and power by establishing standards, guidelines and procedures for the granting
and processing of such deferments.
NOW, THEREFORE, be it resolved that the City Council does hereby adopt the following
standards, guidelines and procedures as established herein:
ELIGIBILITY STANDARDS
1. The applicant must be one of the following:
A. 65 years of age or older;
B. Retired by virtue of a permanent and total disability;
C. 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 5b or 5c, as stated
in the person’s military orders;
and
2. The applicant must be a person for whom it would be a hardship to make the payments; and
3. The property for which deferment is requested must be classified and taxed as homestead property
by the City Assessor as of the date the application for deferment is made; and
4. The first year’s installment of the proposed special assessment must, either alone or in the aggregate
with installments of other special assessments due against the property and payable in the first year
of the proposed assessment, total more than one percent (1%) of the applicant’s Adjusted Gross
Income (AGI).
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INTEREST RATE
Any special assessment deferred pursuant to this policy shall bear interest at the prevailing interest rate
applicable at the time the assessment was originally levied.
TERMINATION
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:
1. The death of the property owner, provided that the surviving spouse is otherwise not eligible for
the benefits hereunder;
2. The property is sold, transferred, subdivided, or in any way conveyed to another by the fee owner
qualified for deferred status;
3. The property loses its homestead status for any reason; or
4. The City Council determines that there would be no hardship to require an immediate or partial
payment of the deferred special assessment.
PROCEDURES
1. The applicant for deferment must file a completed application and affidavit with the City Clerk on
or before November 15th of the year preceding the year for which deferral status is requested in
order to implement the deferral for said year.
2. The City Clerk shall transmit all deferments granted pursuant to the policy to the County Auditor
for recording with the Office of the County Recorder, Dakota or Washington County, Minnesota,
so as to give notice of such deferment to all future owners and encumbrancers of the property for
which a deferment has been granted.
Passed the 18th day of January, 2022.
Mary Fasbender, Mayor
Attest:
Kelly Murtaugh, City Clerk
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