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REQUEST FOR COUNCIL ACTION Date: 5/5/2025 Item No.: 7.c. Department Approval City Manager Approval Item Description: Consider Resolution Updating the Special Assessment Deferral Policy 1 2 Background 3 Minnesota State Statute § 435.193 allows for deferral of special assessments if the City 4 adopts an ordinance or resolution establishing standards and guidelines for determining the 5 existence of a hardship and for determining the existence of a disability. A deferral does not 6 forgive or reduce an assessment, it only delays payment of the assessment. When the 7 assessment no longer qualifies for deferral, the property owner will be required to pay all 8 principal and interest that has accrued since the levy date. Any remaining assessment 9 would be due according to the original terms. 10 11 Roseville adopted Resolution No. 7216 for a deferral process in 1981. In 2008, the State 12 added military personnel as eligible for the deferrals. Staff discussed an update to the 1981 13 resolution with the PWET Commission at their April meeting (Attachment 5) and would like 14 City Council to consider adoption of an update to the policy. The proposed updates to the 15 resolution primarily add active military status as eligible and defer to the Social Security 16 Administration or a physician to determine “permanent and total disability.” 17 18 Policy Objectives 19 The City’s financial policies are consistent with governmental finance best practices as well 20 as previously adopted Council actions. 21 22 Equity Impact Summary 23 The City and state statute recognize that special assessments, although they increase the 24 value of a property, may cause financial hardship on the property owner. The state statute 25 allows for a hardship deferral of assessments based on age, disability, or military status. 26 Although any property owner can object or appeal the assessment, the state statute does 27 not allow deferral based on income alone, race, gender, etc. The documents needed when 28 applying for deferral are likely available to an applicant at no cost; however, applying does 29 require fluency in some systems and a time commitment that may not be available to all. 30 31 Budget Implications 32 Although the City fronts the costs for assessments and waits up to 10 years to be repaid, 33 plus interest, the impact of deferring any assessments is minimal and should be offset by Page 1 of 2 Qbhf!53!pg!248