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Home My WebLink About09-10-07 Item 7A, Approve or Deny Little Bros Forgive of Penalties Interest and Fees for 2003 PMP Assessment ~ ~HlLLS Request for Council Action Prepared By: Dept.: Council Mtg, Date: Final Action Needed By: Sue Iverson Finance ~ Agenda Item: 7.A. ......$~pt~iii~~r1o;~2~iJ7 September 10, 2007 Budgeted Amount: Actual Amount: " Funding Source: "..", ,,,___ __________ ..............-N1A NIl>. N/A ~i[liejl1~"Ctiot;!l~m(~1if~~~g~ffiik~f@&~"""n"''''''''''''''''''_''''___________________."_"",......_"'......"......"'..,..""..",,,_,,_,,_,,"_____________________________n'__"".........................."''''",..,,,..,_",,,_,,___,,_,,_,,_,,______n_____"._""'''m'''m...m..'''..'..,..,..,.._"_________________,,_"'''''''''''''''''''''''''''''_,,__~____, A motion to approve or deny the request from Little Brothers - Friends of the Elderly to forgive penalties, interest. and fees on 32001 Hamline Ave N. in regard to the 2003 PMP assessment. ; i._.....__ no X ,vIe",." Sue Iverson, Request from Little Brothers.Friends of the Elderly No.: No.: III:! Recommendation: Recommendation: x Other: Letter from Little Brothers-Friends of the Elderly ,i<l:llflfl/,ll$j1ili'Qi'i$]ijti€>!lmme1iifS~igs1fUui!m[[[~__..__ ______ , Staff does not believe this to be a significant amount, the organization has paid the majority of the balance owed. Staff also believes this to be a misunderstanding due to the complicated manner of handling assessments both before and after they are certified to the county. The organization has never disputed that it owed the assessment and believed that it had paid the balance in full. ~ ~~HILLS MEMORANDUM DATE: September 10, 2007 Agenda Item 7.A. TO: Honorable Mayor and City Council Members FROM: Sue Iverson, Finance Director ~ SUBJECT: Request from Little Brothers - Friends of the Elderly BACKGROUND In 2003, the City did a PMP project that resulted in an Assessment of $59,364.00 to Little Brothers - Friends of the Elderly for property they owned in the City of Arden Hills at 3200 Hamline Avenue N. In 2004, they received a tax statement from Ramsey County showing the assessment which was to run for 10 years at an interest rate of 5.5%. On May 15,2004 they paid the first half tax statement amount of $5,936.40. On July 9, 2004, they paid $53,427.60 which was the remaining balance due after the 2004 payments. Due to a misunderstanding or misinterpretation between the organization and the county, the second half payment of $5,936.40 was never paid leaving a balance that continued to accrue interest and penalties. On August 2, 2007, Ramsey County sent them a letter stating that they had an outstanding balance of $7,920.38. This letter also stated that this property was subject to tax forfeit to the State of Minnesota in 2008. On August 16, 2007 staff received calls from Therese Cain of Little Brothers - Friends of the Elderly and Mary from Ramsey County Property Tax departments regarding this matter. After several phone calls and information gathering, all parties agree that there was a misunderstanding on the part of Little Brothers - Friends of the Elderly on the assessment process, payment dates, and actual amounts due. Little Brothers - Friends of the Elderly has made an additional payment of $5,474.50 on August 23, 2007 which would be the outstanding principal balance leaving $2,445.88 still due on the account ($766.43 penalty, $$1,667.45 interest, and $12.00 fees). This is calculated through August 31, 2007. We have received a letter from the organization dated August 27, 2007 asking the City Council to forgive or write-off the remaining balance of penalties, interest, and fees (see attached). Page 2 of2 DISCUSSION According to State Statute, the only body with authority to honor this request is the City Council. After researching this matter with the county and reviewing the records, staff has determined that there was no intent to "not" pay the assessment, only confusion as to process and amounts. Little Brothers - Friends of the Elderly at first stated that they never received a bill before the tax statement in 2004, but staff has the affidavits of mailing the assessment notices. Once they received the tax statement it appears that the intent was to pay the entire balance, but there was a miscommunication between them and the county as to the correct amount. (Once an assessment is certified to the county, the current year must be paid with the tax payments and the remaining balance can be prepaid at anytime. The first half payment was made and then the remaining balance was paid, but the second half payment was never made. Staff believes that this was where the miscommunication took place, the organization probably asked to pay the remaining balance due. The county would have taken the prepayment for the subsequent remaining balance but did not include the second half 2004 payment in the amount. The terminology would not have been used the same between the organization and the county, thus leaving a misunderstanding by the organization that the bill was paid-in-full.) The organization is not disputing the assessment, only asking for relief of the penalties, interest, and fees. Little Brothers - Friends of the Elderly did not realize they had a balance due until they received the letter dated August 2, 2007. In talking to Ramsey County, staff has determined that the organization would not have received any other correspondence once the tax went into delinquent status until August 2, 2007. RECOMMENDATION Staff has no recommendation, but asks that Council either approve or deny writing off the remaining penalties and interest on the account and authorizing staff to notifying Ramsey County ifthe decision is to forgive the remaining balance. AUG-24-2007(FRl) 11:56 LITTLE BR iHERS FRIENDS OFll-IE ELDERlY ~ August 22, 2007 Arden Hills City Council City of Arden Hills 1245 West Highway 96 Arden Hills, Minnesota 55112 Re: Assessment 2003 34.30.23.34.0026 3200 Hamline Avenue Dear Mayor and City Council Members of Arden Hills, Little Brothers - Friends ofthe Elderly is a non-profit organization that is dedicated to serving the elderly in the HennepinlRamsey county area. We take pride in our organi7.ation and in being available in a variety of important ways to the elderly in these communities. We also deeply value our relationship with the counties in which we have a presence. Throughout the year our elders enjoy many luncheons and parties held at the Bradford home at 3200 Hamline Avenue N. On Augusl2, 2007 we received notice from Ramsey County that LBFE had an unpaid property tax balance due on the abovc referenced parcel. LBFE immediately began researching our records for receipt of any Ramsey County nOlices. The only records we have were a notice received in 2004 that we owed an assessment for street improvements. (We were able to find lhe cancelled checks showing this amount had been paid in full.) On August 21, 2007 Kris Giga of Arden Hills faxed (per my request) a copy of the Assessment Hearing and the Resolution No. 03-40. According to the 2003 Final Assessment Roll, Little Brothers' oblig"tion was $59,364.00. I am attaching copies of the checks sent to Arden Hills for payment of this assessment. Kris also mentioned a Ramsey County Sheriff would have delivered documentation regarding the obligation due On the I-lamline N. properly. To our regret, we h"ve not been able to find any orthis documentation. We have had many discussions with representatives from Ramsey County and Arden Hills about this matter. They have all been wonderful in trying to help us understand how this happened. We have been told that because the assessmentlettcrslnotices do not appear to be bills it may have been overlooked. Another scenario is the possibility that we did not (for unknown reasons) receive some of the notices including the item delivered by the Sheriff, .and other documentation that would have brQught to our attention this balance due. Whatever the reason, we now find that LBFE has a b"lance of$7,920.38 owed. 1845 East Lake StTeet Minneapolis, MN 55407 P 002/005 AUG-24-2007(FRI) 11: 57 After many conversations, Sue Iverson of Arden Hills has i.nformed us that our only recourse is to present our case to the Mayor and Council Members of Arden Hills. Sbe stated sbe will try to have our ca..<<e heard at the September 10,2007 council meeting in Arden Hills. Today we have sent a. check to Ramsey County in the amount of $5474.50. 1bis will cover the assessment interest that we have been told we owe. In pleading our case, LBFE is asking for forgiveness on the r,,","ining penalty fees of $2445.88. If you have any questions or concerns regarding this maner prior to lI1e Sept 10.' meeting, pleasc feel free to contact me. Your time and hclp is truly appreciated. Sincerely, ain Ex utive Directo Li e Brothers - Friends of the Elderly (6 2)746-0742 1845 East Lake Street Minneapolis, MN 55407 P 003/005