§ A281-13. Deferred assessments.

A. 

Outside City limits. If the City installs utility facilities which benefit property which lies outside the corporate limits, that area and the allocable costs shall be included in the original public hearing for the improvement. The City may attempt to negotiate a contract with the property owner of the property lying outside the City which will provide for payment to the City on the same basis as if the property were within the City and to be assessed for the improvement as a prepayment upon completion of the project. If such a contract cannot be executed, the City will assume the temporary responsibility for payment of the cost allocable to the property lying outside the City limits. In the event, the original principal amount of the assessment, if it had been assessed, plus accumulated interest, shall be increased annually by a percentage to be determined by Council up to a maximum of 15, years for which no payment is made. At the time of annexation of the property to the City, a subsequent public hearing may be held for that property and an assessment roll prepared, adopted and certified to the County Auditor, payable at the same rate and terms except for the total amount, as were applicable to other property owners included in the original assessment. The City shall reserve the right to delay the assessment at the same time it causes to be constructed other public improvements on the property following its annexation. When property lies outside the City limits, no physical connection to the City's utility or drainage system will be permitted until a utility agreement and contract, including satisfaction of costs or assessments, is executed.

B. 

Senior citizens.

(1) 

Criteria. In determining whether or not a senior citizen is eligible for deferral of special assessment installment payments, the following criteria are established:

(a) 

Senior citizens special assessment hardship deferral applies to special assessments levied after the date of the adoption of this policy;

(b) 

Senior citizens special assessment hardship deferral applies to qualifying special assessments against all properties classified as "homestead" pursuant to Minnesota Statute, where one or more of the owners of such property is 65 years of age or older and it would create a hardship for the owner or owners of the property to pay the special assessment installments as they become due;

(c) 

It shall be presumed that a hardship exists if:

[1] 

The annual assessment installment exceeds 1% of the previous year's total adjusted gross incomes, for federal income tax purposes, for all owners of the property; in no event shall total adjusted gross income include social security benefits, railroad retirement benefits, retirement benefits attributable to employee contributions, disability benefits, personal injury awards or workmen's compensation payments; and

[2] 

All owners of the property verify, by completing an application provided by the City.

(d) 

In cases where exceptional and unusual circumstances exist, the City Council may determine that a hardship exists despite the fact that the minimum income requirements of Subsection B(1)(c) are not met; such cases shall be decided by the Council on a case-by-case basis.

(2) 

Interest. Interest shall be charged on any assessment deferred pursuant to this chapter at a rate equal to the rate charged on other assessments for the particular public improvement project the assessment is financing.

(3) 

Termination of deferment. The option to defer the payment of special assessments pursuant to this chapter shall terminate and all installment amounts previously deferred, plus applicable interest, shall become due upon the occurrence of any of the following events:

(a) 

Request of property owner;

(b) 

Death of property owner 65 years of age or older, providing the surviving owner is otherwise not eligible for the deferral;

(c) 

Sale.

(d) 

The City determines that hardship no longer exists;

(e) 

The property, for any reason, loses its homestead status.