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CP095 (Special Assessment Policy)CITY OF JANESVILLE Policy No. 95 Page 1 of 3 CITY COUNCIL POLICY STATEMENT Date Issued: 1/12/2016 Revised: 2/14/2022 General Subject: Administration Effective Date: 2/15/2022 Specific Subject: Payment of Special Assessments and Other Cancellation Date: Development Costs Supersedes No. Responsible City Manager’s Office Dept./Div.: PURPOSE To establish policies and terms for the payment of special assessments associated with the construction of various public improvements typically including paving, curb and gutter, sidewalk, water main, sanitary sewer, storm sewer, and street lighting in accordance with Wisconsin State Statutes; and to 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 set at the rate the City borrows plus one (1) percent interest 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 CITY OF JANESVILLE Policy No. 95 Page 2 of 3 CITY COUNCIL POLICY STATEMENT Date Issued: 1/12/2016 Revised: 2/14/2022 General Subject: Administration Effective Date: 2/15/2022 Specific Subject: Payment of Special Assessments and Other Cancellation Date: Development Costs Supersedes No. Responsible City Manager’s Office Dept./Div.: 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). 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. C. Any property with a non-use deferred special assessment that has expired may pay the special assessment in full in cash or may be split over a period of five (5) years with interest at the rate the City borrows plus one (1) percent interest. The first installment on the five (5) 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. Interest shall be charged beginning thirty (30) days after the date of the date of invoice. 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 each other. A. For real property development, the City will enter a Memorandum of Understanding (MOU) with the developer that details the responsibilities of the City and Developer. The MOU will detail the terms with regards to their respective roles in the funding, coordination, design, construction staking, construction, inspection, and as-built documentation related to activities associated with the proposed real property development project. B. It is the City’s goal to promote development while minimizing potential financial loss to the City. Therefore, Developers shall pay for design costs associated with extending infrastructure prior to staff conducting the work based on estimated costs. Likewise, if a Developer elects to have the City bid and construct the improvements, the Developer shall pay the City in cash the CITY OF JANESVILLE Policy No. 95 Page 3 of 3 CITY COUNCIL POLICY STATEMENT Date Issued: 1/12/2016 Revised: 2/14/2022 General Subject: Administration Effective Date: 2/15/2022 Specific Subject: Payment of Special Assessments and Other Cancellation Date: Development Costs Supersedes No. Responsible City Manager’s Office Dept./Div.: full amount of the construction costs and administrative fees prior to the Council awarding any public works contract. 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 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 Rock 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, limiting earning ability. c. The adjusted annual family income of such person is equal to or less than 50% of the Rock County median income as established by the Department of Housing and Urban Development. During this period of deferment, no interest shall accrue. B. If the City Clerk-Treasurer determines that the property qualifies for a financial hardship based on the established criteria, they may administratively approve the request. No further action by the City Council is required.