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#5 & #6 Discuss and direct staff on revisions to public improvement & special assessment policies; schedule public hearing to eliminate waiver of special assessment procedures (File Ord. #2011-478) ADMINISTRATIVE SERVICES MEMORANDUM February 21, 2011 TO: City Council FROM: Jacob J. Winzenz, Dir. of Admin. Services/Assistant City Manager SUBJECT: Discussion and direction to staff on proposed revisions to various Council Policies regarding public improvements and special assessments (Council Policies #63, #70 and #78); and a new Council Policy on payments of special assessments (Council Policy #87). . Introduction and schedule a public hearing on a proposed ordinance eliminating the waiver of special assessment procedures as a means for satisfying new developer/subdivider storm sewer, sidewalk, and street lighting payment obligations (File Ord. 2011- 478) Summary The City of Janesville has historically had very pro-development policies regarding the financing of public improvements. The City has essentially acted as a financial institution by incurring the costs to develop land and allowing the developer/subdivider to repay the City over five (5) years. However, unlike a financial institution, the City has not completed any credit checks, reviewed business plans, or required that the businesses be sufficiently capitalized. With the downturn in the housing market, numerous subdividers in the City of Janesville have been unable to pay the property taxes and/or special assessments on these lots. Many of these lots are in danger of being auctioned by the County for these back taxes and special assessments. Given this experience, and the absence of development activity at this time, it is appropriate to review how the City of Janesville finances development activity. The City Council has adopted various policies dealing with these subjects including Council Policy #63, Council Policy #70, and Council Policy #78. In addition, the Subdivision Ordinance contains various references to the financing of development activities. Further, the City Council has requested some criteria on the granting of hardship deferrals and staff has incorporated their suggestions into Council Policy #87. Recommendation Staff would appreciate feedback from the City Council on the proposed revisions to these Council Policies. These policies will then be revised and brought back th to the City Council on March 14 for formal action. Following the introduction of File Ordinance 2011-478, staff recommends that it be scheduled for a public hearing on March 14, 2011. City Manager’s Recommendation The City Manager is looking for guidance from the Council on these policy changes. Due to the current economic times, the City is experiencing potential developer delinquency of $2.9 million as of January 2011. As the economy recovers this number could go down. However, the larger policy question is whether the City should be assuming this risk in the future. Some of the potential changes would mitigate our risk in the future on development assessments. Background On October 15, 2010, Rock County held their annual auction of tax delinquent properties. What was somewhat unique about this sale is that it included improved but undeveloped residential lots within the City of Janesville. The City had financed approximately $127,000 worth of improvements to these lots and was faced with the prospect of losing much of this investment or purchasing the lots. The City ended up purchasing the lots and is in the process of selling them to recover the public investment. Unfortunately, the scenario described above may be a common occurrence in the coming years as lots are sold by the County to recover delinquent property taxes and special assessments. As of January 31, 2011, 169 improved, but undeveloped, residential lots have delinquent property taxes and/or special assessments. The total amount delinquent on these lots is approximately $1.77 million with additional amounts owing, but not due, of $1.15 million. Of this total ($2.92 million) approximately 65.4% is owed to the General Fund, 18.1% to the Water Utility, and 16.5% to the Wastewater Utility. What is described above resulted from the confluence of pro-development assessment policies and a dramatic downturn in the housing market. For many decades the City has been very pro-development by installing requested public improvements (water, sanitary sewer, curb and gutter, storm sewer, streets, and street lights) and allowing developers/subdividers to pay for these improvements over five (5) years. This has allowed developers/subdividers to install public improvements to their properties with very little of their own capital and repay the City as the lots are sold. This has worked very well for many years, until the recent downturn in the housing market. In order to prevent this from occurring in the future it is appropriate to re-examine the City’s policies related to the financing of public improvements. This is an especially good time to do so because there is very little development activity so any changes will not affect developments that are currently under consideration. 2 Future developments will be affected, but the developers/subdividers will be aware of any changes before proceeding. Analysis For several decades the City has financed many of the public improvements (water, sanitary sewer, curb and gutter, storm sewer and street construction) by allowing developers/subdividers to pay the improvement cost over five (5) years. This has worked well for the developers/subdividers because they have been able to improve land without putting their own capital at risk, and repay the City as the lots sell. It has worked well for the City because it has facilitated development and the growth of the tax base. However, with the downturn in the housing market, many of these developers/subdividers have been unable to pay their property taxes and special assessments, and the City is at risk of losing its investment. In order to prevent this from occurring in the future staff has reviewed our policies dealing with special assessments and is proposing a number of changes. The changes fall into two (2) categories and include:  Housekeeping: Create a new Council Policy addressing payments for special o assessments and financial hardships (Council Policy #87) and eliminate payment provisions from other policies. Eliminate references to sidewalks from Council Policy #63 and adding o those provisions into Council Policy #70 Sidewalks. Clarify that the City pays the entire cost of curb and gutter replacement. o Updates the sidewalk policy to reflect the current practice of determining o when unfunded sidewalk will be constructed.  Substantive Effective January 1, 2012, property owners who are granted deferrals will o have to pay the assessment rate in effect at the time they connect to the utilities rather than the rate in effect when the deferment was granted. Eliminates the developers/subdividers option to pay for special o assessments over a period of five (5) years. Cash or a letter of credit will need to be provided before the commencement of any design work. Eliminates the permit fee for owner constructed sidewalks. o Establishes criteria for the granting of a financial hardship and allows o administrative approval. 3 CITY OF JANESVILLE Policy No. 63 Page 1 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 PURPOSE To clarify and establish Council policy in regard to the administration of the City’s Special Assessment program for various public works improvements including grading and graveling, paving, curb and gutter, water mains, sanitary sewer, and storm sewer. GENERAL This policy is organized into the following sections: I. Levying of special assessments. II. Street life expectancies and sSpecial assessments relating to curb and gutter replacement and pavement reconstruction. III. Methods of payment for special assessments and procedures for delinquent special assessments. IIIV. Deferrals of special assessments. V. Financial hardships. VI. Waiver of procedure for storm sewer charges. In addition, charges for storm sewers are governed by Ordinance #2000-59,and sidewalks by Council Policy #70, Street Lights by Council Policy #78, and State Statutes. POLICIES I. Levying of Special Assessments. A. Rates. Special assessment rates shall be calculated with a goal of recovering 10095% of the total cost of each year’s sewer and water program and 100%of the total cost of each year’s new streetprogram with the exception of curb and gutter replacement (see Section II.B.); oversized water mains with a diameter in excess of 12 inches, and extra width streets. In these cases the assessment rate shall only include the incremental cost of the oversize improvement above the standard. The cost shall include CITY OF JANESVILLE Policy No. 63 Page 2 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 the full cost of construction, engineering services, and administration. The assessment rates for sewer and water and shall include the unassessed cornerlot exemptions, greenbelt crossings. The assessment rates for curb and gutter and paving shall include the unassessed corner lot exemptions, double frontage lots, greenbelt crossings, parkland and other unassessed frontage. The cost of engineering services and administration shall include the fully burdened costs of all employee time below the level of DepartmentDivision Head level , including salaries/wages, fringe benefitsrelated support services such as supplies, materials, vehicles, etc. B. Definitions. 1. Frontage: That portion of a parcel of land which lies immediately adjacent to a public street or public alley. On corner lots, frontage is considered to be the short side facing a public street. 2. Side Frontage: On corner lots, side frontage is considered to be the long side facing a public street or public alley. 3. Rear Frontage: On lots having frontage on two streets or on a street and alley, rear frontage is considered to be the side facing the street or alley at the rear of the lot, house, or future structure. C. Sanitary Sewer and Water Main. 1. All normal rectangular lots or sites in Single Family (R1 and R2) Residential Districts. a. Assess full frontage (short side on corner lots). b. Exempt the first 70 feet of side frontage on corner lots less than 140 feet in depth, served on both sides. CITY OF JANESVILLE Policy No. 63 Page 3 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 c. Assess that side frontage of corner lots greater than 70140 feet served on both sides. d. Exempt rear frontage on lots having double frontage which are served on both frontages, except if the lots are large enough for potential division. e. When sewer and water mains are installed along the side frontage (long side) of a corner lot first, assess full frontage together with the side frontage subject to the above 70140 foot exemption. 2. All irregular shaped lots or sites in Single Family (R1 and R2) Residential Districts. a. Assess minimum frontage of 70 feet on lots less than 70 feet. b. Assess full frontage of those lots greater than between 70 feet and 140 feet. c. Assess maximum frontage of 140 feet on lots greater than 140 feet. cd. Exempt that frontage where lot depth is less than 50 feet when lot is not subject to any other exemption. , 3. All lots or sites zoned Multi Family, Office Commercial, or Industrial. a.(1) Assess full frontage along all sides served. b.(2) There shall be no corner or rear frontage exemptions. 4. All sites along major highways where mains are or will need to beinstalled on both sides of the highway, the rate for sewer and water mains shall be double the normal rate (see Section IV. D.). D. Sewer and Water Laterals. 1. The cost of installing sewer and water laterals shall be assessed to each lot for which laterals are installed. CITY OF JANESVILLE Policy No. 63 Page 4 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 2. The assessment shall be paid in full following the completion of the work, or with the property taxes the first year following the work. E. Preliminary Grading and Graveling of Newly Opened Streets. 1. Following the installation of sanitary sewer and water main or at any other appropriate time, the Council may order the preliminary grading and graveling of streets so affected. 2. An assessment rate shall be established annually which will return to the City approximately 100% of the cost of the preliminary grading and graveling. Said rate shall be assessed to the abutting benefited property owners according to the frontages in Section I.C., Sanitary Sewer and Water Main. 3. The assessment shall be paid in full following the completion of the work, or with the property taxes the first year following the work. F. Curb, Gutter and Paving. 1. All normal rectangular lots or sites in Single Family (R1 and R2) Residential Districts. a. Assess full frontage (short side on corner lots). b. Exempt 70 feet of side frontage on corner lots. c. Assess that side frontage on corner lots greater than 70 feet. d. Exempt full rear frontage on double frontage lots where City or State restrictions allow no access. e. Assess full rear frontage on double frontage lots, if the lots are large enough for potential subdivision. CITY OF JANESVILLE Policy No. 63 Page 5 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 f. Assess full rear frontage for alley paving. g. Assess the actual roadway width up to and including a maximum of 36 feet, face of curb to face of curb. 2. All irregular shaped lots or sites in Single Family Residential Districts. a. Assess minimum frontage of 70 feet on all lots less than 70 feet. b. Assess full frontage of lots greater than 70 feet. Assess maximum frontage of 140 feet on lots greater than 140 feet. c.Exempt that frontage where lot depth is less than 50 feet when lot is not covered by any other exemption. de. Exempt any roadway width in excess Assess the actual roadway width up to and including a maximum of 36 feet, face of curb to face of curb. 3. All lots or sites zoned Multi Family, Office, Commercial, or Industrial. a. Assess full frontage along all sides served. b. There shall be no corner or rear lot exemptions. c. Assess for the actual roadway width up to and , including a maximum of 4852 feet of pavement the full pavement cost and all necessary curb and gutter. 4. All sites zoned Multi Family, Office, Commercial or Industrial along major highways where an access or frontage road is constructed along the highway and all boulevard streets. a. The assessment rate for the access road or frontage road or boulevard streetshall include the full cost including allcurb and gutter on both sides of the roadway. CITY OF JANESVILLE Policy No. 63 Page 6 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 b. These assessments are in addition to any assessments levied for highway improvements. Sidewalk Exemption for Corner Lots. 1. All corner lots in Single Family (R1 and R2) Residential Districts where sidewalk is required by Council on two frontages. Assess full frontage on initial frontage ordered. Exempt 70 feet of sidewalk on second frontage ordered. Assess the length greater than 70 feet on the second frontage ordered on corner lots. 2. Corner lot exemption is effective for sidewalks put in during or after the 1999 sidewalk program. II. Street Life Expectancies and Special Assessments Relating to Curb and Gutter Replacement and Pavement Reconstruction. A. The following life spans of curb and gutter and various pavement types is hereby adopted based upon the INTERIM REPORT OF PAVEMENT PERFORMANCE IN JANESVILLE, WISCONSIN dated June 25, 1971, Office of the City Engineer, Division of Public Works. 1. Concrete pavements 30 years 2. Asphalt overlays on concrete or 15 years concrete base pavements 3. Asphalt pavements prior to 1961 15 years 4. Asphalt pavements 1961 and later 18 years 5. Asphalt overlays on asphalt pavements 15 years 6. Seal coats 5 years 7. Concrete curb and gutter 45 years BA. The City shall pay the entire cost for curb and gutter replacement where the City Engineer determines such CITY OF JANESVILLE Policy No. 63 Page 7 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 replacement is necessary. B. Standards for replacement include: shall be as established and modified from time to time by the City EngineerDepartment of Public Works Ponding in excess of one (1) inch C. If an abutting property owner desires additional replacement of curb and gutter, such replacement shall be assessed at 100% of the total construction costs, including the cost of removal of the existing curb and gutter and miscellaneous driveway and sidewalk revisions. B. Special assessment rates shall be calculated according to the following method, the intent being to return 50% of the total construction cost of each year’s program for curb and gutter replacement. 1. The rate for curb and gutter replacement shall be based on 50% of the cost including the cost of removal of the existing curb and gutter and miscellaneous driveway and sidewalk revisions. 2. Curb and gutter or pavements having reached or exceeded their established life span shall be assessed according to the above special assessment rate determinations. Special assessment rates for curb and gutter or pavements which have not attained their established life span shall be pro-rated downward by the straight-line method according to their actual life. 3. Concrete or deep base pavement assessments abutting single family residential properties shall be assessed for curb and gutter and paving at the prevailing rate for a 36 foot street with curb and gutter and residential equivalent pavement. 4. Assessable frontages for curb and gutter be determined according to Section I.F. of this policy. CITY OF JANESVILLE Policy No. 63 Page 8 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 III. Methods of Payment for Special Assessments and Procedures for Delinquent Special Assessments. A.B. Methods of payment for individual property owners. 1. Three methods of payment shall be available to any individual property owner in the City of Janesville who is assessed for a necessary public improvement. These methods shall be: a. The assessment may be paid in cash upon completion of the work. b. The assessment may be paid with property taxes for the first year following the completion of the work. c. The assessment may be spread over a period of five (5) years with interest at the prevailing rate per annum on the unpaid balance. The first installment on the five-year plan shall include 1/5 of the principal with the interest on the unpaid portion, and shall be so entered in the tax roll. Each of the subsequent installments shall be entered in each of the annual tax rolls thereafter until all are collected. Deferred payment on these installments shall bear interest at the prevailing rate per annum set under Section cC below. Interest shall be be charged from the date of invoice. cd. For individual property owners, the prevailing interest charges referred to above shall be on the full amount of the assessment on 1 November and run to the end of the year and thereafter shall be on the unpaid principal balance. 2. Any of the methods of payment stated above may be elected by an individual property owner on any assessment for a public improvement project except CITY OF JANESVILLE Policy No. 63 Page 9 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 for the installation of sewer and water service pipes (laterals) and preliminary grading and graveling. 3. Under certain conditions involving programs which have not been requested by a majority of individual property owners involved, or in cases of hardship, the assessment may be spread over a ten-year payment plan with interest at the prevailing rate per annum on the unpaid balance (Section C below). The first installment on the ten-year plan shall include 1/10 of the principal with the interest on the unpaid portion, and shall be so entered on the tax roll. Each of the subsequent installments shall be entered in each of the annual tax rolls thereafter until all are collected. Deferred payment on these installments shall accrue interest at the prevailing rate per annum set under Section C. below. 4. If a public improvement program is eligible for the ten-year payment plan, such plan shall be approved by the Council simultaneously with the ordering of the public improvement program. In all cases, the individual property owner shall have the option of electing one of the two payment methods set forth in Paragraph 1a and 1b above. However, the Council shall elect either a five or a ten-year payment plan, and under no circumstance may both plans be used on any single public improvement project. 5. Exception Special assessments for which the total amount due is less than $250 shall not be eligible for extended payment on either a five or ten year plan. Such assessments may be paid under the provisions of Paragraph 1a or 1b above. B. Methods of Payment for Other Owners. The policy set forth above shall pertain only to individual property owners. Other owners, which include subdividers, land CITY OF JANESVILLE Policy No. 63 Page 10 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 developers, speculative builders, or owners of several or more lots on the same street, or in the same areas, may select any one of the three payment plans listed in 1a, b, or c in accordance with the procedures set forth below, except that they will be billed by the City upon completion of the work and may pay their assessments in cash without interest up to the last day of the month of the billing, after which the prevailing interest rate per annum on the unpaid balance will be charged. 1. Use of Five-Year Payment Plan. a. All requests for public works improvements for the first program of the year shall be submitted to the City Engineer by January 1 and for the second program by June 1. b. Simultaneously, the developer shall submit a letter indicating whether they intend to use the five-year payment plan. (1) The developer shall be eligible for the five year payment plan, without further review, if: (a) For first time users of the plan, their request is for 30 lots or less (rounded off to a block) in each of their first two years of use of the plan. In their third year of use, they shall be governed by the procedures in Paragraph C. below. (b) For developers not covered by Paragraph (a), their request is for: - 30 lots or less, or - the average number of lots the developer sold in the previous three years, or - the highest number of lots the developer sold in any single year, during the last three years, whichever is greater (rounded off to a block). c. If a developer wishes to request the use of the five-year payment plan for more lots than are allowed under Paragraph B.1. above, then the request shall be made in writing to the City Engineer prior to November 1. The request shall include the CITY OF JANESVILLE Policy No. 63 Page 11 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 following information. (1) The number of additional lots requested. (2) A listing of all improved vacant lots currently owned by the developer and their location. (3) The number of lots sold by the developer in each of the last five years. (4) The justification for the request. (5) Such additional information as the Administration or Public Works Committee shall specify. d. All requests made under Paragraph c. shall require the approval of the Public Works Committee. e. The Public Works Committee, subject to Council approval, may adjust the limits for any or all developers based upon the number of lots requested under the five year payment plan and/or a change in city growth trends including the demand for housing and lots. C. Interest rate on Five Year Payment Plan - Bad Debt Reserve. The Administration shall include in Council resolutions levying special assessments that allow a five or ten year payment plan a rate of interest that is estimated to be 3% greater than the rate the City anticipates selling its next projected bond sale at. All funds generated by the 3% spread shall be credited to a Bad Debt Reserve account within the Special Assessment Fund. D. Delinquent Special Assessments. 1. The County Treasurer shall be encouraged to foreclose at the minimum time period allowed on any delinquent special assessments and to immediately proceed to market the lots. 2. When a developer is delinquent, he/she shall no longer be eligible to use the five-year payment plan unless the Public Works Committee, subject to the approval of the City Council, shall CITY OF JANESVILLE Policy No. 63 Page 12 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 specifically find the use is in the City’s best interest. The review of a request shall be based upon a written request by the developer including the information outlined under Paragraph III.B.1.c. of this section; financial information related to the ability to pay by the developer; and a review of the information and housing trends by the Administration. IIIV. Deferrals of Special Assessments. A. The granting of non use deferments of special assessments is allowed in SS 66.605 which provides as follows: Special Assessments. Notwithstanding any other statute, the due date of any special assessment levied against property abutting on or benefited by a public improvement may be deferred on such terms and in such manner as prescribed by its governing body while no use of the improvement is made in connection with the property. Such special assessment may be paid in installments within the time prescribed by the governing body. Any such special assessment shall be a lien against the property from the date of the levy. B. All property subject to special assessments. Non use deferments in accordance with the provisions of SS 66.605 will may be granted at the discretion of the Council on the following basis. 1. A non-use deferment, if granted, shall be for a period of either five years or ten years and may include any or all public improvements. At the end of the period of deferment granted, and provided the deferment has not automatically terminated and the assessment paid as a result of the change of conditions set forth in the following section, the owner of the property upon which the assessment has been deferred shall have the option of paying for the assessment in a lump sum, or paying for the same total amount for the next five years on the City’s regular five-year payment program (if eligible), or requesting an extension of the deferments for five (5) years. Interest during the CITY OF JANESVILLE Policy No. 63 Page 13 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 subsequent five-year payment period shall be at the current prevailing interest rate per annum on the unpaid balance, and shall be entered each year on the tax roll. 2. Non use deferments shall be granted only on properties while they are used for agricultural purposes; or are vacant and undeveloped. Such deferments shall automatically terminate and assessments come due including accrued interest upon an application for use of utilities, sale, split of property, platting of property or change of zoning at request of owner. 3. Beginning January 1, 2012, property owners requesting a non-use deferment must agree to pay the assessment rate in effect at the time their non-use deferment expires or is automatically terminated, as provided above. C. Exceptions to this policy may be made under the following conditions: 1. When public improvements are made at and for the convenience of the city for a municipal purpose. 2. When public improvements are required that, in the judgement of the Council will result in a substantial economic gain to the city. 3. When the use anticipated in a rezoning request is not realized. D. Property abutting State and Federal highways. When water and sewer mains are installed along State and Federal highways (see Section I.C.4.) for property that is zoned residential: 1. One half of the assessment shall be due and payable according to the various methods outlined in the improvement resolution. CITY OF JANESVILLE Policy No. 63 Page 14 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 2. The other half of the assessment shall be deferred without interest until such time as the site is rezoned for non-residential use. 3. At that time, the deferred amount shall be due and payable and may be spread over a five year payment plan with interest at the City’s then prevailing interest rate for the five year payment plan. 4. For such deferments granted after January 1, 2012, the assessment due at the time the property is rezoned for non-residential use will be determined by the assessment rate in effect at that time. E. Funding of Deferrals. Whenever a deferral is made, the deferral shall be assigned to the appropriate Utility or General Fund, and the interest carrying costs shall be funded annually starting with the next budget at the appropriate fund. F. City Property. For City property, including municipal buildings, police stations, fire stations, landfills, etc. but not including parks and greenbelts; a charge equivalent to the special assessment for the type of improvement constructed shall be made against the appropriate Utility or General Fund, and shall be funded in the next budget. Greenbelts and parks are considered a part of the subdivision and the cost will be added to the program front footage cost. G. Cemeteries. No deferrals shall be granted for water or sewer mains if the cemetery has a connection to the system. H. Deferments after adoption of final resolution. 1. Generally, special assessments are imposed CITY OF JANESVILLE Policy No. 63 Page 15 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 following the procedures outlined in State Statutes. Those statutes require a final resolution, which describes among other things the method of payment. 2. Once a public works project is definitely planned, either before or after the adoption of a preliminary resolution in the special assessment procedure, landowners affected by the special assessments may apply for special deferments, as previously categorized by the Council. Only the Council may grant such special deferments. Requests may be made orally or in writing before or at the hearing on the final resolution. However, no request for special deferment will be considered or acted upon by the Council after passage of the final resolution. Such requests must be received and made known to the Council before action upon the final resolution or they will not be considered. V. Financial Hardships. A. If a property owner has a financial hardship, they may apply in writing to the Council to spread payments over ten years with interest; rather than five years. B. An indigent person may apply for city payment under SS 74.77, Stats., of charges made for new sidewalk construction and special assessments. PROCEDURE: Whenever any indigent person over 64 years of age or a person handicapped so as to limit earning ability wishes to have the City of Janesville pay for new sidewalk construction or special assessments in front of their property pursuant to SS 74.77, Stats., such request shall be made to the Administration for analysis and decision. An appropriate resolution shall be prepared only if the Administration finds that: 1. The person is over 64 years of age or is handicapped so as to limit earning ability. CITY OF JANESVILLE Policy No. 63 Page 16 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 2. The property involved is owned by and is the residence of such person. 3. The family income of such person is equal to or less than 50% of the County median income as established by the Department of Housing and Urban Development. VI. Waiver Procedure for Storm Sewer Charges. A. The City Council may accept and approve a waiver of assessment procedure for the cost of storm sewer for a particular subdivision plat or certified survey in lieu of a cash payment at the time of land division approval (Ref. Ordinance #71-237). This requires that each individual situation be examined upon its own merits as to whether or not such privilege is in the City's best interest. B. The waiver of special assessment procedure must be requested by the owner, subdivider, or developer in writing at least 14 days prior to the scheduled Council meeting at which the final plat, certified survey, or land division is to be approved. C. Upon request for the waiver procedure, the staff shall calculate the total cost of the storm sewer charges according to the prevailing rate per acre. This total charge shall be divided equally to each parcel or lot in the subdivision or certified survey or shall be divided according to parcel area if appropriate because of oversized lots or large sites. The waiver document shall be prepared listing both the total cost and the individual lot or parcel cost. D. The owner of each parcel so affected by the storm sewer charges shall sign the waiver document which shall be properly notarized as called for in the document. 100% of the individual owners, developer, and mortgagor must sign the waiver document agreeing to the special assessments to be levied. E. The City Council, prior to approving the subdivision CITY OF JANESVILLE Policy No. 63 Page 17 of 17 CITY COUNCIL POLICY STATEMENT Date Issued 8/22/88 Revised 12/4/2000 3/1/2011 General Subject: Administration Effective Date 12/4/20003/1/2011 Specific Subject: Special Assessments Cancellation Date for Public Works Improvements Supersedes No. 2, 6, 28 33, 34, 38, 57 plat, certified survey, or land division should review the storm sewer charges and determine whether or not they will require the cash deposit or allow the waiver procedure as requested. If the Council allows the waiver procedure, the subdivision plat, certified survey, or land division can be approved. Immediately following such approval, the Council shall approve the waiver of assessment procedure, thereby levying the special assessments for storm sewer as listed thereon. F. Those lands which fall outside or beyond the provisions of said ordinance (#71-237) establishing storm sewer charges, are subject to the charges at the same rate per acre to be levied in accordance with Section 66.60 of the Wisconsin Statutes. G. The form of the waiver of special assessment procedure shall be according to the attached form, said form is to be a part of this policy statement. H. Exception. An exception to this policy may be made relative to the proposed charges, rates, and waiver procedure when in the judgement of the Council there will be a substantial economic gain to the City. WAIVER OF SPECIAL ASSESSMENT NOTICES AND HEARINGS UNDER S. 66.60, WISCONSIN STATUTES * * * We, the undersigned owners of property benefited by the following proposed public improvements to be made by the City of Janesville, Rock County, Wisconsin, to-wit: STORM SEWER CONSTRUCTION IN (Name of Subdivision or Certified Survey) in consideration of the construction of said improvements by the City of Janesville, Wisconsin hereby admit that such public improvements will benefit our properties and consent to levying of special assessments against our premises under S. 66.60 of the Wisconsin Statutes for the cost of such improvements. In accordance with S. 66.60 (18) of the Wisconsin Statutes, we hereby waive all special assessment notices and hearings required by S. 66.60 of the Wisconsin Statutes, and we further agree and admit that our properties are benefited by the construction of such improvements and that said special assessments are made upon a reasonable basis as tabulated on the attached sheet. We, the undersigned owners of properties benefited by the aforementioned waiver do further agree that we will either pay the assessments against any parcel in cash by November 1st following the effective date of this waiver, with the taxes the first year following the effective date of this waiver, or at the election of the property owner and with the approval of the Committee of Public Works, said assessments may be spread over a period of five (5) years with interest at (the prevailing rate) per annum on the unpaid balance. The first installment on the five (5) year plan shall include one-fifth of the principal with the interest on the unpaid portion, and shall be so entered in the tax roll. Each of the subsequent installments shall be entered in each of the annual tax rolls thereafter until all are collected. Deferred payment on the aforementioned installments shall bear interest at (the prevailing rate) per annum. FORM SUBDIVISION____________________________ ACRES__________ TOTAL CHARGE____________ City Storm Account Lot Blk. Sewer Number No. No. Assessment Owner Developer Date Notary Public required for others than the aforementioned individual property owners, shall include subdividers, land developers, speculative builders, or owners of several or more lots on the same street, or in the same area. STATE OF WISCONSIN) ) S.S. (Notary Affidavit) ROCK COUNTY ) CITY OF JANESVILLE Policy No. 70 Page 1 of 9 CITY COUNCIL POLICY STATEMENT Date Issued 7/28/92 Revised: 9/21/92, 3/10/97, 12/4/2000, 5/12/2003, 1/14/2008, 3/25/2008, 03/09/2010, 3/1/2011 General Subject: Administration Effective Date 3/019/110 Specific Subject: Sidewalk Construction, Maintenance, and Cancellation Date Assessment of Costs Supersedes No. 18 & 48 PURPOSE To establish objectives, criteria, and procedures for the construction and maintenance of sidewalks, and assessment of costs. STATEMENT OF POLICY 1. Objectives A. To establish a system of sidewalks in Janesville that links pedestrian generators to destinations and, thus, provides for pedestrian safety. B. To establish criteria for the construction of sidewalks in existing developed areas and future areas. C. To provide a procedure for an orderly system of construction of sidewalks in existing developed areas of the city based on established criteria. D. To provide for the equitable funding of sidewalk construction. E. Maintain existing public sidewalks in a safe condition. 2. Criteria A. Sidewalks should be constructed according to the adopted “Pedestrian Transportation Corridor Plan” (PTCP). B. The official PTCP will be maintained in the City Engineer’s Office. C. The PTCP shall be updated and presented to the City Council for review, amendment and approval at a January Council meeting of each year. CITY OF JANESVILLE Policy No. 70 Page 2 of 9 CITY COUNCIL POLICY STATEMENT Date Issued 7/28/92 Revised: 9/21/92, 3/10/97, 12/4/2000, 5/12/2003, 1/14/2008, 3/25/2008, 03/09/2010, 3/1/2011 General Subject: Administration Effective Date 3/019/110 Specific Subject: Sidewalk Construction, Maintenance, and Cancellation Date Assessment of Costs Supersedes No. 18 & 48 D. The PTCP is intended to be a comprehensive tool used to communicate with citizens about where the pedestrian corridors in Janesville are located. It shall contain the following elements: (1) Current city limits (2) Adjacent trails/sidewalks not in City jurisdiction (3) Layout of current street network (4) Color coded lines representing the following: a. Green shall represent existing sidewalks b. Yellow shall represent planned unfunded sidewalks. This is generally considered the minimal amount of sidewalk system necessary to provide connectivity throughout the community. c. Purple shall represent planned funded sidewalks. d. Orange shall represent future unfunded sidewalks. This category is included on the PTCP to communicate with citizens that a sidewalk may be constructed adjacent to their property e. Blue shall represent existing trails. This category is shown to provide overall context for the connectivity of the system. 3. Plats/Certified Survey Maps A. For any new streets for which sidewalks are planned per a Neighborhood Plan or designated by Plan Commission vote, before the City Treasurer signs any plat or certified survey, the subdivider shall list or show on the plat or certified survey the streets along which sidewalks are to be constructed pursuant to City Ordinances and these will be added to the PTCP upon subdivision approval. 4. Governing Ordinances A. Effective June 13, 1977 through August 7, 1992, construction of sidewalks in new developments are governed by Section 17.32.120 Sidewalks of the Janesville Code of General Ordinances. B. Effective August 8, 1992, construction of sidewalks in new developments are governed by Chapter 17.46 - Sidewalks, of the CITY OF JANESVILLE Policy No. 70 Page 3 of 9 CITY COUNCIL POLICY STATEMENT Date Issued 7/28/92 Revised: 9/21/92, 3/10/97, 12/4/2000, 5/12/2003, 1/14/2008, 3/25/2008, 03/09/2010, 3/1/2011 General Subject: Administration Effective Date 3/019/110 Specific Subject: Sidewalk Construction, Maintenance, and Cancellation Date Assessment of Costs Supersedes No. 18 & 48 Janesville Code of General Ordinances. C. Effective February 27, 2006, File Ordinance No. 2006-308 established additional requirements on the construction of sidewalks in new developments. 5. Implementation Procedures Pedestrian Transportation Corridor Plan Color Category Implementation Procedures Part of yearly plan beginning in 2009 to construct 100% of this Yellow Planned Unfunded Walk walk. Implementation will follow procedures outlined in Section 8 of this policy. Construction will follow plat Purple Planned Funded Walk approval. Section 6.A.4 of this policy addresses this process Construction follows a petition Orange Future Unfunded Walk process per Section 5.C These are generally considered a city-wide concern. Initiation Blue Trails should be undertaken through the capital improvements and budgeting process A. This policy shall not restrict the decision of the Council or actions of City Administration to address a public safety concern. B. If a section of sidewalk is included on the resolution for the annual sidewalk program and is not approved by the City Council, then the sidewalk shall not be placed by the Administration on the resolution in the following two years. The receipt of a petition shall be reported CITY OF JANESVILLE Policy No. 70 Page 4 of 9 CITY COUNCIL POLICY STATEMENT Date Issued 7/28/92 Revised: 9/21/92, 3/10/97, 12/4/2000, 5/12/2003, 1/14/2008, 3/25/2008, 03/09/2010, 3/1/2011 General Subject: Administration Effective Date 3/019/110 Specific Subject: Sidewalk Construction, Maintenance, and Cancellation Date Assessment of Costs Supersedes No. 18 & 48 to the City Council. C. Petition Procedures (Orange Sidewalk). (1) All requests must be in writing and contain the name and address of the persons initiating the request, the site of the requested installation, and the reason(s) for the request. (2) All requests must be submitted to the City Engineer by February 1 of each year. (3) The request will be placed on the Public Works Program for the year provided it meets one of the following criteria: a. 30% of abutting property owners per block signing a petition in favor. The limits of a block shall begin at one street intersection and end at the next street intersection; b. or, 10 unrelated persons residing within one-quarter (1/4) mile of the requested sidewalk signing a petition in favor. (4) The City Engineer shall report any sidewalk that meets the implementation criteria as “Recommended”, unless there are topographical concerns that make the sidewalk inappropriate to construct, in which case the City Engineer shall report it as “Not Recommended-Topographical Problem.” CITY OF JANESVILLE Policy No. 70 Page 5 of 9 CITY COUNCIL POLICY STATEMENT Date Issued 7/28/92 Revised: 9/21/92, 3/10/97, 12/4/2000, 5/12/2003, 1/14/2008, 3/25/2008, 03/09/2010, 3/1/2011 General Subject: Administration Effective Date 3/019/110 Specific Subject: Sidewalk Construction, Maintenance, and Cancellation Date Assessment of Costs Supersedes No. 18 & 48 (5) After introduction by the City Council written notice shall be sent to abutting property owners and requestors stating: a. The date of the City Council public hearing. b. The City Engineer’s recommendation per this policy. (6) The official public notice for proposed sidewalk installations shall contain: a. The site of proposed installation. b. The date, time, and location of the City Council public hearing. (7) After the public hearing, the City Council may order any sidewalk installation(s) it deems justified. (8) This policy in no way restricts pedestrians’ use of the public right-of-way. 6. Construction and Maintenance A. Construction. (1) Sidewalks may be constructed privately by owners of the abutting property. (2) Sidewalks may be constructed by the City and billed to the owner of the abutting property. (3) All public sidewalks whether constructed privately or publicly shall meet the City of Janesville’s Standard Specifications for Sidewalk Construction (as shown in Section 9 of this policy). CITY OF JANESVILLE Policy No. 70 Page 6 of 9 CITY COUNCIL POLICY STATEMENT Date Issued 7/28/92 Revised: 9/21/92, 3/10/97, 12/4/2000, 5/12/2003, 1/14/2008, 3/25/2008, 03/09/2010, 3/1/2011 General Subject: Administration Effective Date 3/019/110 Specific Subject: Sidewalk Construction, Maintenance, and Cancellation Date Assessment of Costs Supersedes No. 18 & 48 (4) For sidewalks in new developments as defined by plats and certified surveys approved after August 7, 1992, the City Engineer shall direct the construction of the sidewalks at a time he deems appropriate without further action by the City Council, and the cost shall be charged to the sidewalk construction account. (See Chapter 17.46 – Sidewalks, of the Janesville Code of General Ordinances). B. Maintenance/Repairs. (1) Sidewalks shall be maintained by owners of abutting property. (2) The Engineering Department shall establish a system of inspection of existing sidewalks, including standards for replacement (as detailed in Section 9 of this policy); shall notify abutting property owners of necessary repairs; and shall have the authority to order the repair of any sidewalk. If the abutting property owner(s) fail to undertake the necessary repairs within the notification period, the City Engineer may arrange for a contractor to undertake the repairs; may bill the abutting property owner; and if unpaid, a lien may be placed on the property in accordance with Wisconsin Statute (66.615). 7. Cost Allocation A. New Construction. (1) For new developments as defined by plats and certified surveys approved after August 7, 1992 in accordance with City Ordinance Chapter 17.46, before the City Treasurer signs any plat or certified survey, the City Engineer shall calculate the totalcost of construction for all sidewalks shown on the Neighborhood Plan or designated by Plan Commission vote of the area affected by the survey or plat. The cost calculation shall include intersections, greenbelt crossings, parkland, and engineering.The property owner shall make payment arrangements in accordance with Council Policy 87,Payment of Special Assessments and Other Development Costs.may CITY OF JANESVILLE Policy No. 70 Page 7 of 9 CITY COUNCIL POLICY STATEMENT Date Issued 7/28/92 Revised: 9/21/92, 3/10/97, 12/4/2000, 5/12/2003, 1/14/2008, 3/25/2008, 03/09/2010, 3/1/2011 General Subject: Administration Effective Date 3/019/110 Specific Subject: Sidewalk Construction, Maintenance, and Cancellation Date Assessment of Costs Supersedes No. 18 & 48 either pay this amount in full or may spread the principal over five years with interest under the City’s Special Assessment Policy. The property owner shall execute a Waiver of Special Assessment Procedure to use the five-year plan. (2)For existing areas, the sidewalk shall be assessed 100% to the , abutting property owner(s) except for corner lot exemption provided below: a.) All corner lots in Single Family (R1 and R2) Residential Districts where sidewalk is required by Council on two frontages. 1.)Assess full frontage on initial frontage ordered. 2.)Exempt 70 feet of sidewalk on second frontage ordered. 3.) Assess the length greater than 70 feet on the second frontage ordered on corner lots. b.) Corner lot exemption is effective for sidewalks put in during or after the 1999 Sidewalk Program. B. Maintenance/Repairs. The abutting property owner(s) shall pay the cost. 8. Implementation of Category Yellow Sidewalks A. Yellow sidewalks shown on the PTCP shall be constructed each year beginning in 201109 until complete. B. The community will be divided into 9 zones as shown on the PTCP. C. Approximately one mile from each zone will be selected by City Administration for consideration and approval by the Council each year until all yellow category sidewalks are constructed. D. The City Engineer shall establish criteria to be used in prioritizing the construction of sidewalks. Following are criteria to be considered: (1) Development status (2) Land use CITY OF JANESVILLE Policy No. 70 Page 8 of 9 CITY COUNCIL POLICY STATEMENT Date Issued 7/28/92 Revised: 9/21/92, 3/10/97, 12/4/2000, 5/12/2003, 1/14/2008, 3/25/2008, 03/09/2010, 3/1/2011 General Subject: Administration Effective Date 3/019/110 Specific Subject: Sidewalk Construction, Maintenance, and Cancellation Date Assessment of Costs Supersedes No. 18 & 48 (3) Proximity to schools (4) Traffic volume (5) Presence on a bus route E. The construction of sidewalks shall be scheduled so that the higher priority sidewalks will be constructed in before the lower priority sidewalks. FD. It is estimated this program will be completed in approximately seven (7) years. E. For 2008, the program will consist of petitions and public safety concerns. 9. Standards for Construction of New Sidewalk and Sidewalk Repair A. New Sidewalks shall meet the following standards: 1) Minimum width shall be five feet (5’). 2) Minimum thickness shall be four inches (4”) for terrace walk and six inches (6”) for driveway walk. 3) Cross-slopes shall be 1/4” per foot (2%) or less 4) Running and ramp slopes of ADA shall govern. 5) Grading shall provide positive drainage to prevent ponding of water. 6) Horizontal alignment shall generally be one foot (1’) on the right-of-way side of the property line. Exceptions to this may be granted by the City Engineer. 7) Vertical alignment shall generally follow the curb line and be 6” above or below the curb depending on terrain. Exceptions to this may be granted by the City Engineer. 8) Material shall be portland cement concrete. Exceptions may be granted by the City Engineer for driveway crossing if existing drive materials provide a smooth hard surface meeting ADA requirements. B. Repair Sidewalks 1) Repair any sidewalk which: a) Has adjacent sections with a three quarter inch (3/4”) or greater vertical displacement. CITY OF JANESVILLE Policy No. 70 Page 9 of 9 CITY COUNCIL POLICY STATEMENT Date Issued 7/28/92 Revised: 9/21/92, 3/10/97, 12/4/2000, 5/12/2003, 1/14/2008, 3/25/2008, 03/09/2010, 3/1/2011 General Subject: Administration Effective Date 3/019/110 Specific Subject: Sidewalk Construction, Maintenance, and Cancellation Date Assessment of Costs Supersedes No. 18 & 48 b) May exhibit other hazardous conditions. 2) The appeal process for the implementation of repair sidewalk standards shall move from the Sidewalk Inspector to Project Manager for the Sidewalk Program to Assistant Engineering Manager to Engineering Manager to Director of Public Works/City Engineer to Assistant City Manager to City Manager. 10. Permit Fees A. Work Performed by Public Works contractor: 1) Administrative sidewalk program costs are included in the sidewalk assessment rates referenced in section 7 – Cost Allocation. Therefore, no permit fee applies to sidewalk maintenance work or new installation. B. Work performed by property owners or private contractors: 1) Property owners electing to perform sidewalk improvements themselves or choose to hire a private contractor to complete necessary improvements shall pay a nonrefundable $75 permit fee to cover administrative costs associated with staff coordination for compliance with City standards. The sidewalk permit fee is required for each affected parcel and is required for a specific sidewalk defect or installation.If property owners fail to complete necessary repairs or installations by the deadline established, the City has the right to add this work to the Public Works contract. Property owners will be given no less than 30 days to complete the sidewalk repairs or installation before the work could be added to a public works contract. CITY OF JANESVILLE Policy No. 78 Page 1 of 2 CITY COUNCIL POLICY STATEMENT Date Issued 11/11/97 General Subject: Administration Revised 12/4/2000, 3/1/2011 Effective Date 3/1/2011 _______ Specific Subject: Special Assessments For Street Lighting Cancellation Date Systems Supersedes No. 30 PURPOSE: To record and establish a policy to levy and recover Special Assessments for the installation of municipally-owned street light systems to facilitate traffic flow, pedestrian safety and property security; and to further facilitate the general safety and welfare of the City’s neighborhoods. STATEMENT OF POLICY: I. GENERAL: Special Assessments shall be levied against all property having frontage on a public street for the cost of the initial installation of street light systems. These . street lights shall be assessed 100% The amount of the Special Assessment shall be determined annually. Construction of street light systems will normally follow the installation of curb and gutter. The street light installation would normallyoccur in the year following installation ofcurb and gutter. II. RESIDENTIAL STREET LIGHTING: The amount of the Assessment shall be based upon those costs associated with the lighting standards established for streets in residential subdivisions. Street lights are installed at every intersection and mid- block, 300-400 feet apart. III. COMMERCIAL AND INDUSTRIAL LIGHTING: There are additional costs associated with the higher, greater intensity lighting in commercial and industrial surveys. The assessment shall be based upon the actual cost of the equipment and installation, and will be converted to a lot front assessment. IV. METHOD OF DETERMINING SPECIAL ASSESSMENT: The Assessment cost for a subdivision shall be established by multiplying the average cost per street light per year by the number of lights needed in each subdivision. The total cost for the subdivision would then be divided equally for each lot in the subdivision. Payment in accordance with Council Policy #87 shall be made prior to the City Clerk-Treasurer signing the platThe total amount shall be paid prior to recording the CITY OF JANESVILLE Policy No. 78 Page 2 of 2 CITY COUNCIL POLICY STATEMENT Date Issued 11/11/97 General Subject: Administration Revised 12/4/2000, 3/1/2011 Effective Date 3/1/2011 _______ Specific Subject: Special Assessments For Street Lighting Cancellation Date Systems Supersedes No. 30 plat, or the owner(s) would sign a waiver of special assessment procedure whereby the amount for each lot could be paid over five years with interest. V. ASSESSMENTS FOR CERTIFIED SURVEYS: When the division of land occurs as a Certified Survey, rather than a subdivision plat, the assessment cost as established for subdivisions in section IV above shall be converted to a lot front assessment, and the total amount for the certified survey shall be established and paid as provided for above. VI. EXEMPTIONS UPON IMPLEMENTATION: All existing subdivisions and surveys, which are on record prior to the effective date of this policy, are exempt from this policy. The effective date of this policy is January 1, 1998. CITY OF JANESVILLE Policy No. 87 Page 1 of 4 CITY COUNCIL POLICY STATEMENT Date Issued Revised: General Subject: Administration Effective Date 3/01/11 Specific Subject: Payment of Special Assessments and Other Cancellation Date Development Costs Supersedes No. PURPOSE To establish policies and terms for the payment of special assessments associated with the construction of various public improvements including grading and graveling, paving, new sidewalk, water mains, sanitary sewers, storm sewers, and street lighting; and establish criteria for the consideration of alternate payment arrangements in cases of financial hardship. STATEMENT OF POLICY 1.General A.Those property owners benefitting from public improvements constructed or installed adjacent to their property should pay for such improvements. B.The City of Janesville recognizes the substantial impact public improvement costs have on the individual property owners and may provide payment options to lessen that burden. C.The City of Janesville is not a financial institution in the business of financing improvement costs of private development. 2.Methods of payment for individual property owners. A.Three methods of payment shall be available to any individual property owner in the City of Janesville who is assessed for a necessary public improvement. However, these payment methods shall not apply to subdividers, land developers, speculative builders, or owners of three or more vacant lots on the same street or within ¼ mile of another. i.The assessment may be paid in cash upon completion of the work. ii.The assessment may be paid with property taxes for the first year following the completion of the work. Interest shall be charged beginning thirty (30) days after the date of the invoice. iii.The assessment may be spread over a period of five (5) years with interest at the prevailing rate per annum on the unpaid balance. The first installment on the five-year plan shall include 1/5 of the principal with the interest on the unpaid portion, and shall be so entered in the tax roll. Each of the CITY OF JANESVILLE Policy No. 87 Page 2 of 4 CITY COUNCIL POLICY STATEMENT Date Issued Revised: General Subject: Administration Effective Date 3/01/11 Specific Subject: Payment of Special Assessments and Other Cancellation Date Development Costs Supersedes No. subsequent installments shall be entered in each of the annual tax rolls thereafter until all are collected. Interest shall be charged beginning thirty (30) days after the date of the date of invoice. B.Any of the methods of payment stated above may be elected by an individual property owner on any assessment for a public improvement project except for the installation of sewer and water service pipes (laterals) and preliminary grading and graveling. Exception Special assessments for which the total amount due is less than $500 shall not be eligible for extended payment on either a five or ten year plan. Such assessments may be paid under the provisions of Paragraph A(i) or A(ii) above. 3.Methods of Payment for subdividers, land developers, speculative builders, or owners of three or more vacant lots on the same street or within ¼ mile of another. A.Cash deposit prior to the commencement of any design work related to the improvement in an amount equal to the City Engineer’s estimate for the total cost of the improvement. B.Posting a Letter of Credit satisfactory to the City prior to the commencement of any design work related to the improvements in an amount equal to 1½ times the City Engineer’s estimate for the total cost of the improvement. Payment in full shall be due within thirty days of the completion date or invoice date, whichever is later. Any balance unpaid thirty (30) days after the invoice date shall be charged interest at the applicable rate and drawn from the Letter of Credit. 4.Financial Hardships. A.If an individual property owner has a financial hardship, they may apply in writing to the City Clerk-Treasurer for alternate payment arrangements. The property owner must provide whatever information the City Clerk-Treasurer determines is necessary for the purposes of determining financial hardship. i.To spread payments over ten (10) years with interest; rather CITY OF JANESVILLE Policy No. 87 Page 3 of 4 CITY COUNCIL POLICY STATEMENT Date Issued Revised: General Subject: Administration Effective Date 3/01/11 Specific Subject: Payment of Special Assessments and Other Cancellation Date Development Costs Supersedes No. than five years as provided in Section 2 (A)(iii) the following criteria must be met: a.The property involved is owned by and is the primary residence of such person. b.The adjusted annual family income of such person is equal to or less than 80% of the County median income as established by the Department of Housing and Urban Development. ii.To have all payments deferred until ownership of the property is transferred the following criteria must be met: a.The property involved is owned by and is the primary residence of such person. b.The person is over 64 years of age or is handicapped so as to limit earning ability. c.The adjusted annual family income of such person is equal to or less than 50% of the County median income as established by the Department of Housing and Urban Development. During this period of deferment, no interest shall accrue on any unpaid balance. B.If the City Clerk-Treasurer determines that the property qualifies for a financial hardship based upon the criteria established above, then they may administratively approve the request. No further action by the City Council is required. C.A financial hardship is presumed to exist when an individual property owner has a total of 400 linear feet of new sidewalk ordered installed on a single property, or a combination of any number of properties on a single public works contract. In such cases, payment for the sidewalk improvements may be spread over ten (10) years with interest at the request of the property owner; rather than five years as provided above. D.If a subdivider, land developer, speculative builder, or owner of three or more vacant lots on the same street or within ¼ mile of another (subdivider) has a financial hardship they may apply in writing to the CITY OF JANESVILLE Policy No. 87 Page 4 of 4 CITY COUNCIL POLICY STATEMENT Date Issued Revised: General Subject: Administration Effective Date 3/01/11 Specific Subject: Payment of Special Assessments and Other Cancellation Date Development Costs Supersedes No. City Clerk-Treasurer for alternate payment arrangements. i.The following information must be provided for the purposes of determining financial hardship: a.Federal Income Tax return for the prior year, including all schedules, attachments, and supporting documentation, for the owner. b.Current financial statements. c.Twelve month payment history for any outstanding loans on the property. d.A plan for meeting future payment obligations on the property including, but not limited to, property taxes, loans, and assessments. ii.In their written request the subdivider must request specific payment arrangements. iii.The subdivider must demonstrate that the granting of these alternate payment arrangements will allow them to meet their current and future payment obligations on the property. iv.The City Clerk-Treasurer will evaluate the information provided and prepare a recommendation to the City Council. All such requests must be approved by the City Council. ORDINANCE NO. 2011 – 478 An ordinance eliminating waiver of special assessment procedures as a means for satisfying new developer/subdivider storm sewer, sidewalk, and street lighting payment obligations under JGO Chapters 17.44, 17.46, and 17.47. THE COMMON COUCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS: SECTION I. JGO 17.44.010 D. is hereby repealed. SECTION II. JGO 17.44.010 E, F, and G are hereby renumbered D, E, and F, respectively. SECTION III. JGO 17.46.010 B., last sentence is repealed. The remainder of the subsection shall remain in full force and effect. SECTION IV. 17.47.010 B, last sentence is repealed. The remainder of the subsection shall remain in full force and effect. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Eric Levitt, City Manager McDonald ATTEST: Steeber Perrotto Jean Ann Wulf, City Clerk-Treasurer Truman Rashkin APPROVED AS TO FORM: Voskuil ______ Wald Klimczyk, City Attorney Proposed by: Assistant City Manager Prepared by: City Attorney Wald Klimczyk