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91-2038 ' ' Council File # /� � � ✓ • - ' � "� Ordinance # �7�'�� > , q t.��������::� Green Sheet # 7��3 ORDINANCE .� �'�.° CITY O SAINT PAU SOTA �� �� � � � ..,�,w.�.��`„ - . . Presented By � Referred T Committee: Date An ordinance amending Sections 64 . 07 and 64. 08 of the Saint Paul Administrative Code pertaining to Deferred Assessments. THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN: Section 1. That Section 64. 07 of the Saint Paul Administrative Code is hereby amended to read as follows: Sec. 64 . 07 Deferred assessments generally. Pursuant to the authority granted by Minnesota Statutes, Section 435. 193 , any person sixty-five (65) years of age or older or retired by virtue of a permanent and total disability for whom it would be a hardship to make the payments, owning and homesteading property, which property is subject to levying of a special assessment after the effective date of this section, and which person meets the qualifications of hardship as defined herein, or under Section 64. 08 of this Code, may apply for and receive deferred payment of special assessments so levied by making application therefor to the Ramsey County Assessor in accordance with Minnesota Statutes, Section 435. 194. Except as otherwise defined under Section 64.08 of this code, a hardship shall be deemed to exist when the average annual payment for all assessments levied against the subject property exceeds one percent of the adjusted gross income of the applicant as evidenced by the applicant's most recent federal income tax return. Deferred assessments shall be subject to interest at the rate specified in Section 64 . 04 (a) and as provided in Section 64 . 05 of this Administrative Code. The option to defer payment of special assessments shall terminate and all amounts accumulated, including accrued interest, shall become due upon the occurrence of any of the following events: (a) The death of the owner; provided, that the spouse is otherwise not eligible for the benefits hereunder; or (b) The sale, transfer or subdivision of the property or any part thereof; or �_����f��� � ��f����: , (c) If the property should for any reason lose its �+7��� homestead status. Section 2. That section 64 . 08 of the Saint Paul Administrative Code is hereby amended as follows: Sec. 64. 08. Deferred assessment; Combined Sewer Separation Program. (a) Statement of purpose and findings of council. The City of Saint Paul has undertaken an extensive program of upgrading and separating its sewers and paving its streets as a result of a state mandated Combined Sewer Separation Program promulgated pursuant to ��e�--�� ,—�=e�� ' ^, �'��s , e-�—�-„�e�a—€e�8�. Minnesota Statutes. Sections 116. 16 and 116. 162 . Owners of homesteaded properties within an area improved under the Combined Sewer Separation Program may be subject to increased annual costs in the form of �}��•-�}�� storm water utility charges, �'-^�•°�*-^M storm water drainage district assessments, and sewer service rate surcharges together with assessments for capital improvements made under the street paving program necessitated by the sewer separation. It is the finding of this council that persons sixty-five (65) years of age or older or persons who are retired by virtue of a permanent and total disabilitv, owning and homesteading property typically live on limited or fixed incomes and are therefore not able to adapt and plan for additional annual expenses resulting from the ownership of their homestead properties. It is further found that the inclusion of an assessment payment for street improvements made under the street paving in conjunction with all of the other above referenced annual charges would create a financial hardship for these persons. (b) Deferred payments. For purposes of an assessment levied as a result of the street paving program under the Combined Sewer Separation Program, hardship shall be deemed to exist when an owner and homesteader has attained the age of sixty-five (65) years or older or who is retired by virtue of a permanent and total disability. Any deferred payment of a special assessment pursuant to this paragraph shall be for a period no longer than twenty (20) years from the date of the approval of the request for deferral. At the end of the twenty year period or upon the occurrence of any of the events enumerated in Section 64.07 of this Code, whichever occurs sooner, all unpaid amounts accumulated, including accrued interest shall become immediately due and payable. Except as set forth in this section all other provisions of Section 64 . 07 of this Code shall be applicable. C3RI�G�INA►L � ���-���� , � section 3 . J7��'�`� This ordinance shall take effect and be in force thirty (30) days from and after its passage, approval and publication. Yeas Nays Absent Requested by Department of: imon ,-° oswi z --` on acca ee e man - une i son BY� ,_� _, Adopted by Council: Date DEC 3 1991 Form Approved by City Attorney Adoption ,C.�e,x�tified by Counc�il Secretary gy: J� �(n/�s—� �O��s Gft l fj ` ' t a � ��, � BY� " , '�� � f' � Approved by Mayor for Submission to Approved by Ma�ior: Date ��� Council B ��:� � �=% By: y� P���l�4Sk�'�D D�i;1 �' . , . ., . . . ���_ao� . , � � � Y � DEPARTMENT/OFFICE/COUNCIL DATE INITIATED N0. 1710 3 cit councii io-28-9i GREEN SHEET INITIAUDATE INITIAUDATE CONTACT PERSON&PHONE �DEPARTMENT DIRECTOR �CITY COUNCIL _ Wl 1�.1 G�ICI W l 1 S 011 4 6 4 6 Ag$�dN �CITY ATTORNEY �CITY CLERK NUMBER FOR �BUDOET DIRECTOR �FIN.&MOT.SERVICES DIR. MUST BE ON COUNCIL AGENDA BY(DATE) ROUTIN(i 1 1�S�9 1 ORDER �MAYOR(OR ASSISTANT) � TOTAL#OF SIGNATURE PAGES 2 (CLIP ALL LOCATIONS FOR SIGNATURE) ACTION REQUESTED: Approval of an ordinance amending Chapter 64 of the Saint Paul Administrative Code allowing property owners with permanent, total disabilities to defer certain assessments for up to 20 years. RECOMMENDATIONS:Approve(A)or Re)ect(R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: _PLANNING COMMISSION _ CIVIL SERVICE COMMISSION �• Has this person/firm ever worked under a contract for this department? _CIB COMMITfEE _ YES NO 2. Has this person/firm ever been a city employee? _STAFF — YES NO _DI3TRIC7 COURT _ 3. Does this person/firm possess a skill not normally possessed by any current city employee7 3UPPORTS WHICH COUNCIL OBJECTIVE? YES NO Explain ali yes anawers on separate shaet and attach to green shset INITIATINO PROBLEM,ISSUE,OPPORTUNITY(Who,What,When,Where,Why): Chapter 64 of the St. Paul Administrative Code allows property owners to defer assessments levied as a result of street paving under the Combined Sewer Separation Program for up to 20 years when certain circumstances exist. This amendment would extend this privilege to those owners of home- steaded property who are retired by virtue of a permanent and total dis- ability. This is consistent with Minnesota Statutes Sec. 435. 193 regulating such assessments. ADVANTAGES IF APPROVED: This amendm�nt would assist those owners of homesteaded property who are permanently disabled and in hardship situations to retain their property while the city achieves its goals for sewer separation and street paving. DISADVANTAGES IF APPROVED: The city may have to "carry" these assessments for up to 20 years, however, using current figures and practices it is estimated that this would be less than one-half of one percent of the total assessable cost. � RECEIVED OCT29 DI3ADVANTAGES IF NOT APPROVED: CITY CLERK It is possible that some disabled owners of homesteaded property could lose their home because of the cost of the assessment, the inability to pay and the inability to defer the assessment until such time that financial circumstances change or the property is sold. TOTAL AMOUNT OF TRANSACTION $ _� COST/REVENUE BUDGETED(CIRCLE ONE) YES NO FUNDING SOURCE ACTIVITY NUMBER FINANCIAL INFORMATION:(EXPLAIN) �W . � • •. . . . . . . . NOTE: COMPLETE DIHECTIONS ARE INCLUDED IN THE GREEN SHEET INSTRUCTIONAL MANUAL AVAILABLE IN THE PURCHASING OFFICE(PHONE NO. 298-4225). ROUTING ORDER: Below are correct routings for the five most frequent rypes of documents: CONTRACTS(assumes authorized budget exists) COUNCIL RESOLUTION (Amend Budgets/Accept. Grants) 1. Outside Agency 1. Department Director 2. Department Director 2. City Attorney 3. City Attorney � 3. Budget birector � 4. Mayor(for contracts over$15,000) 4. Mayor/Assistant 5. Human Rights(for contracts over$50,000) 5. City Council 8. Finance and Management Services Director 6. Chief Accountant, Finance and Management Services 7. Finance Accounting ADMINIS7RATIVE ORDERS(Budget Revision) COUNCIL RESOLUTION (all others, and Ordinances) 1. Activity Manager 1. Department Director 2. Department Acxountant 2. Ciry Attorney 3. Department Director 3. Mayor Assistant 4. Budget Dfrector 4. Ciry Council 5. City Clerk 6. Chief Accountant, Finance and Management Services ADMINISTRATIVE ORDERS(all others) 1. Department Director 2. City Attorney 3. Finance and Management Services Director 4. Ciry Clerk TOTAL NUMBER OF SIGNATURE PAGES Indicate the�of pages on which signatures are required and paperclip or flag eech of thsse pages. ACTION REQUESTED Describe what the projecUrequest seeks to accomplish in either chronologi- cal order or order of importance,whichever is most appropriate for the issue. Do not write complete sentences. Begin each item in your list with a verb. RECOMMENDATIONS Complete If the issue in question has been presented before any body, public or prlvate. SUPPORTS WHICH COUNCIL OBJECTIVE? Indicate whlch Council objective(s)your projecUrequest supports by listing the key word(s)(HOUSING, RECREATION, NEIGHBORHOODS, ECONOMIC DEVELOPMENT, BUDGET, SEWER SEPARATION). (SEE COMPLETE LIST IN INSTRUCTIONAL MANUAL.) PERSONAL SERVICE CONTRACTS: This information will be used to determine the city's liability for workers compensation claims,taxes and proper civil service hiring rules. INITIATING PROBLEM, ISSUE,OPPORTUNITY Explain the situation or conditions that created a need for your project or request. ADVANTAGES IF APPROVED Indicate whether this is simply an annual budget procedure required by law/ charter or whether there are specific ways in which the City of Saint Paul and its citizens wiii benefit from this projecUaction. DISADVANTAQES IF APPROVED What negative effects or major changes to existing or past processes might this projecUrequest produce if it is passed(e.g.,traffic delays, noise, tax increases or assessments)?To Whom?When?For how long? DISADVANTAOES IF NOT APPROVED What will be the negative consequences if the promised action is not approved? Inabiliry to deliver service?Continued high traffic, noise, accident rate?Loss of revenue? FINANCIAL IMPACT Although you must tailor the information you provide here to the issue you are addressing, in general you must answer two questions: How much is it going to cost?Who is going to pay? . �,�'r-,����� , �y,.�.�,� . ;�}'`� ''`*''� CITY OF SAINT PAUL �,s . ����1 s:�� :�g OFFICE OF THE CITY ATTORNEY + E� ..it �C!7 �f� ��.'�•� JANE A. MC PEAK, CITY ATTORNEY 800 Landmark Towers Saint Paul,Minnesota 55102 612-298-5121 JAMES SCHEIBEL FAX 612-298-5619 MAYOR October 15, 1991 �� ��. � � � Council President William Wilson � saint Paul �ity �ouncil oC� � 1 iG�1 Room 719 Saint Paul City Hall BIL�;.YYI[ILSOfy Dear Council President Wilson: You requested that our office draft an amendment to Saint Paul Administrative Code 64 . 07 and 64. 08 that would provide for deferring assessments for handicapped persons who meet the hardship definitions set out in Code Sections 64 .07 and 64 .08. Your letter of September 27, 1991 noted that the present form of these two Code Sections did not appear to allow for the deferral of assessments to persons totally disabled. I have drafted amendments to Code Sections 64 . 07 and 64.08 which contain language that will provide for persons who are "retired by virtue of a permanent and total disability and for whom it would be a hardship to make [assessment] payments" to make application for deferral of assessments, in general, under Sectic�n 64 . 07 and for assessments specifically under the Combined Sewer Separation Program pursuant Section 64 . 08. This amended language is taken directly from Minn. Stat. § 435. 193 ; the state statute that directs local government to provide these types of deferrals. The amended ordinance also contains some "housekeeping" changes. These changes, found in Section 2 of the ordinance, reference the actual state statute that authorized the Combined Sewer Separation Program. The amendments also clarify two words by separating a conjunction. I would note that in your letter you had used the word "handicapped" in describing those persons for whom you desired to have relief. Minnesota Statute § 435. 193 does not use the word "handicapped" to describe persons considered eligible for assessment deferrals. Likewise, the state statutes do not contain a helpful definition of who "handicapped" persons are. If you have any questions or would like to see any other changes in . . . �-�,'���� � the ordinance please contact me. Very truly yours, ���"�� P ter W. Warner Assistant City Attorney - - -� _ . _ . , - � _ . - . : , _ .. �- _ , . ; •. _ . . , :.. :,. < ;ti _ . . �:L - "4 � _ . , £ . .� , .� . . .. . � �' �. . ..:. ":�.� . ": '. _ , ... .. ., _ .-.,, . . . ,'.�".. I , , , ,._ � . , _. . , . . '.�. .. , . 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