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assessment Deferment -2- Dec. 6, 1976 .Items :number 2, 3, and 4 are the'...ranges'.from lowest to .highest based: on ,cities using different criteria:' Obviously 'only one guideline such as:are found in 2, 3, or~~ 4 is required. The amount of assessment need note be placed in but could-be if'believeddesirable.. The guideline method of approach would make-theprocess more confidential to the applicant with only the vote for or against 'being public. The law also provides that exceptions can be-made outside the guidelines where the Council beleves'it warranted Interest charged is another element to be addressed within an ordinance. The Council-may defer assessments with or without interest. Virtually.. all ordinances we;have reviewed hale provided for some kind of interest Perhaps the easiest method would be to`establish an interest rate equivalent to the rate applied to all other assessments. That rate is set so as to offset deb requirement costs. Any rate between that rate and no interest could be established or a specific rate for each deferral could be established at the time of deferral.. -Since the purpose of deferral is riot -`to remove the-assessment, but .rather to make it payable at a==future date, it would seem that the standard interest rate would be:-the most equitable-to all those who are assessed for an improvement. The last issue is whether the policy should apply to only projects which have yet to be assessed or also to projects which have been assessed. Most of. the ordinances are unclear as to this subject although a few .clearly state only new assessments will be considered and a few othex's apply to both current and future assessments. In order to get some kind of handle on the impact of a deferment policy, the following is offered. According to a 1970 report of the Metro Council, there are 153 homesteads in New Brighton owned by persons over 65. .This amounts to 3.3/0 of the owner occupied homes-:.n the City. With the general population aging, this figure may be higher today. The majority of these homes would be expected to be in the older portions of the-City which by and large .have no outstanding or pending assessments. Barring road .reconstruction there are not likely to be assessments in the near future. -The only exception to this may be shade tree removal assessments which could severely impact the older sections of the City. The special assessment fund of the City is very sound--:and would appear capable of handling the effects of deferment. The shade tree fund i , however, a separate fund which as the Council knows has had some problems.