CITY OF HOMER
HOMER, ALASKA
City Manager
ORDINANCE 02-48
AN ORDINANCE AMENDING CHAPTER 17.04 OF THE HOMER CITY CODE CONCERNING SPECIAL ASSESSMENTS AND CONNECTION FEES FOR PROPERTIES SUBDIVIDED AFTER THE CREATION OF A LOCAL IMPROVEMENT DISTRICT
WHEREAS, Section 17.04.095 of the Homer City Code makes provisions for division of assessments among lots subdivided from a parcel after the assessments of a local improvement district become liens on the property; and
WHEREAS, the manner of division of assessments set forth in section 17.04.095 is not just, equitable, or appropriate when the assessments were originally made as a fixed amount per lot without regard to the characteristics of the lot (e.g., size or dimensions), because in such a case a subsequent subdivision means one or more lots will receive free benefits from the improvement where the assessments were levied on the assumption that every lot should pay an equal share for the benefits.
NOW THEREFORE THE CITY OF HOMER HEREBY ORDAINS:
Section 1. Section 17.04.095 of the Homer City Code is hereby amended to read as follows:
17.04.095 Terms of payment. a. Procedures for handling initial assessment payments, annual payments on assessments financed by the City or other institution and setting of penalties and interest shall be set by Resolution of the City Council.
b. Except as provided in subsection (d), if a landowner subdivides a
tract originally assessed as one entire parcel, a proportionate share of the
total amount of the assessment may be allocated to each individual subdivided
lot abutting or benefiting from the improvement; road, waterline and/or sewer
line. As individual lots are sold, the purchasers may elect to assume and pay
assessment for that lot in
Page Two
Ordinance 02-48
City of Homer
installments
as set by Council Resolution under section 17.04.090. Full payment shall be
made within the same period as the number of years remaining on the installment
plan for the specific assessment district.
b. In the event a landowner subdivides a tract
originally assessed as one entire parcel, a pro rata portion of the total
amount of the assessment may be allocated to each individual lot abutting the
improvement; road, waterline and/or sewer line. As individual lots are sold, the purchasers may elect to assume
and pay assessment for that lot in installments as set by Council Resolution
under section 17.04.090. Full payment
shall be made within the same period as the number of years remaining on the
installment plan for the specific assessment district.
c. The seller and purchaser of a subdivided lot shall execute an agreement providing for the assignment of the installment plan by the original landowner and an assumption of the terms and conditions of the installment plan by the purchaser. This agreement shall be executed on the date of closing or within five days thereafter. This agreement shall take effect only upon approval thereof by the City and after payment of a transfer fee to the City in the amount of twenty-five dollars. Subsequent purchasers of lots may also elect to assume the balance of any installment plan in the same manner as set forth in this section above.
d.
If a landowner subdivides a parcel of land (including without limitation
lots and tracts of any size) originally assessed as one parcel in a local
improvement district where assessments were set as a fixed and equal amount per
parcel without regard to the characteristics of the parcel, i.e., without
regard to the parcel size or dimensions, then section 17.04.180 shall govern
and subsections 17.04.095(b) — (c) shall not apply.
Section 2. A new section 17.04.180 of the Homer City Code is hereby enacted to read as follows:
c. If the owner of such subdivided property
refuses to pay the subdivided property connection fee, the subdivided property
shall be denied the benefit of the improvement.
d. The City Manager is authorized to negotiate
and execute a written payment plan with the property owner on payment terms
that are substantially the same as those authorized for the local improvement
district by the City Council resolution adopted pursuant to subsection
17.04.090, subject to the following
(i) The City Manager will refuse to
enter into such a payment plan if the City Manager determines there is
insufficient equity in the property to adequately collateralize payment of the
amounts due.
(ii) The property owner must execute
a written agreement and a recorded deed of trust or other instrument creating a
lien on the property for the payment of all sums due or to become due.
(iii) The
City Manager may adjust the interest rate on the payment plan up or down to
reflect any change in interest rates from the date of the original assessment
to the date of entering into the payment plan.
The interest rate on the payment plan will be a fixed rate unless the
interest rate on the original assessment set under section 17.04.090 was a
variable interest rate.
e. The subdivided property connection fee paid
pursuant to this section, shall, after collection by the City, be disbursed by
the City to the owners of the property originally assessed and the City in
proportion to the amounts paid by each toward the cost of the improvement. Such disbursements must be paid by the City
to the current owner of record of the property at the time the disbursements
are made without regard to the identity of the property owner or the payer at
the time the original assessments were levied or paid.
City of Homer
Section 3. This ordinance is of a permanent and general character and shall be included in the City Code.
PASSED ENACTED BY THE CITY COUNCIL OF THE CITY OF HOMER, ALASKA, this __________ day of ______________________, 2002.
CITY OF HOMER
_______________________________
JACK CUSHING, MAYOR
ATTEST:
___________________________
MARY L. CALHOUN, CMC, CITY CLERK
AYES:
NOES:
ABSTAIN:
ABSENT:
First Reading:
Public Hearing:
Second Reading:
Effective Date:
Reviewed and approved as to form:
_____________________________ ___________________________
Ronald Wm. Drathman Gordon J Tans
City Manager City Attorney
Fiscal Note: Not identified.