1976-12-14 - Laserfiche WebLink

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December 6, 1976 TO: The Honorable Mayor and Members. of-;.the Council - FROM: Thomas F. Lewcock, City Manager SUBJECT: .Assessment Deferment for. Senior Citizens Since March of 1974 it has been possible for .City Councils to defer the '.assessments of those over sixty-five years of age who own homestead property where hardship is involved. The 1976 legislature amended the earlier law by requiring that Councils who choose to defer assessments must adopt a policy by resolution or ordinance which defines the process to be used and establishes criteria for hardship. It should be made clear that it is not mandatory that such resolution or ordinance be adopted unless the Council wishes to establish a deferment policy. We do believe, however, that. there is an implied obligation on the Council to at least formally consider whether a deferment policy is warranted. Many communities have adopted deferment policies in the past .several months.. The ordinances-.,passed have been very brief as most provisions are provided for in law. For example, any assessment deferred becomes due and;~payable with interest when; a. The owner dies, provided the spouse-is not eligible; b. The property is sold; c. The property looses its homestead status; d. _If,the City determines there would be no hardship in partially or wholly imposing the assessment after it had been deferred. The major problem in designing the ordinance is the question of hardship. Some of the ordinances weave the decision of hardship totally to-.the .Council..- This would appear to be a problem from two perspectives. .First, it provides no guidelines as to whether hardship does or does not exist. Second, it requires an applicant to come before the Council at`a public meeting and respond to whatever .questions the Council may wish to ask regarding. why the applicant believes a hardship exists, A second manner of approach is to specify the conditions which warrant. ..hardship.. Some of the guidelines other cities have used include: 1. Assessment must exceed $300; 2. Applicant must have real property valued at less than $50,000- $75,000; 3. .assessments plus interest may not exceed 1%-3% of gross annual earnings; 4. Annual-income not in excess of $3,600-$7,500.