Resolution 16-052 New Penalty and Interest Structure for Natural Gas Assessments

CITY OF HOMER
HOMER, ALASKA

Smith

RESOLUTION 16-052

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, PROVIDING FOR A NEW PENALTY AND INTEREST STRUCTURE FOR SPECIAL ASSESSMENTS IN THE HOMER NATURAL GAS DISTRIBUTION SPECIAL ASSESSMENT DISTRICT THAT BECOME DELINQUENT ON OR AFTER JULY 1, 2016, AND PROVIDING TERMS FOR THE REINSTATEMENT ON OR BEFORE JULY 1, 2016 OF ASSESSMENTS THAT BECAME DELINQUENT BEFORE THAT DATE.

WHEREAS, On March 23, 2015, the Council adopted Resolution 15-17, confirming the assessment roll, establishing payment due dates and establishing delinquency, penalty and interest provisions for the Homer Natural Gas Distribution Special Assessment District (“District”); and

WHEREAS, On June 15, 2015, the Council adopted Resolution 15-047(S)(A), changing the due dates for assessments in the District on properties other than condominium units; and

WHEREAS, On September 14, 2015, the Council adopted Resolution 15-081(S), confirming the assessment roll for condominium units in the District, and establishing delinquency, penalty and interest provisions for those assessments; and

WHEREAS, Under the resolutions cited above, commencing July 1, 2016 the due date for installment payments of principal and interest on assessments in the District is July 1 of each year; and

WHEREAS, Under the resolutions cited above, upon the delinquency of an annual installment payment on an assessment in the District, the remaining principal balance of the assessment becomes immediately due and payable, with the amount that is due being subject to a penalty of 10%, and interest at a rate of 10.5% per annum; and

WHEREAS, It is appropriate to establish a more lenient penalty and interest structure for installments on assessments in the District that first become delinquent on or after July 1, 2016; and

WHEREAS, To provide an incentive to bring current assessments in the District that became delinquent before July 1, 2016, it is appropriate to apply the more lenient penalty and interest structure for assessment installments that are not delinquent before July 1, 2016 to previously delinquent assessments that are brought current not later than that date.

NOW, THERFORE, BE IT RESOLVED that if an assessment in the District has not been delinquent before July 1, 2016, a delinquent annual installment of principal and interest on the assessment that is due on or after July 1, 2016 shall be subject to a late payment penalty equal to fifty dollars ($50.00) multiplied by the number of calendar months (or portions thereof) that elapse until the delinquent installment, plus interest and penalty are paid in full; provided, that the amount of this penalty shall not exceed two hundred dollars ($200.00).  If the delinquent installment, plus interest and penalty, are not paid in full within four calendar months after the installment due date, the entire outstanding principal amount of the assessment shall be in default and shall be immediately due and payable, and thereafter the entire outstanding assessment principal shall bear interest at the rate of ten and one-half percent (10.5%) per annum until paid.  The penalty imposed under this paragraph does not bear interest.

BE IT FURTHER RESOLVED that, notwithstanding Resolutions 15-17, 15-047(S)(A) and 15-081(S), an assessment in the District that became delinquent before July 1, 2016 shall not be immediately due and payable in full because of that delinquency, but may continue to be payable in installments of principal plus interest at a rate of four percent (4%) per annum and thereafter shall be subject to the penalty and interest structure provided in the preceding paragraph, if on or before July 1, 2016, the City receives payment of (i) the delinquent assessment installment plus a penalty of ten percent (10%) of the total assessment amount and interest on the total assessment amount at a rate of ten and one-half percent (10.5%) per annum, and (ii) the assessment installment that is due on July 1, 2016.

PASSED AND ADOPTED by the Homer City Council on this 9th day of May, 2016.

                                                                                                         CITY OF HOMER

                                                                                                         _____________________________

                                                                                                         MARY E. WYTHE, MAYOR

ATTEST:

______________________________

JO JOHNSON, MMC, CITY CLERK

Fiscal Note: N/A