88-9252 POLICY Assessments(Published in The Salina Journal May -27, 1988)
ORDINANCE NUMBER 88-9252
AN ORDINANCE AUTHORIZING PREPAYMENT OF SPECIAL
ASSESSMENTS, ESTABLISHING AN ADMINISTRATIVE FEE, ESTABLISHING A
SPECIAL ASSESSMENT ESCROW FUND AND AUTHORIZING THE PROMULGATION
OF PROCEDURES THEREUNDER.
BE IT ORDAINED by the Governing Body of the City of Salina,
Kansas:
Section 1. Policy objective. K.S.A. 10-115 provides that where bonds
have been issued by the City, which bonds are payable from special
assessments, the owner of any real estate liable for any such special assessment
may redeem his or her property from such liability by paying all of the
installments of the assessments which have been levied, and also the amount of
the unlevied installments with interest on the unlevied installments at the rate of
interest provided in said bonds from the date of the bonds to the time of
maturity of the last installment. It is the policy objective of the Governing Body
to provide a means for the owners of real estate subject to special assessments
to prepay, in full, any special assessments not previously certified to the Saline
County Clerk in a manner consistent with the intent and purpose of K.S.A.
10-115, but at reduced expense to the real estate owner through the
establishment and use of a Special Assessment Escrow Fund and an Escrow
Agreement between the City and any real estate owner desiring to prepay such
special assessments.
Section 2. Authorization. Any owner of real estate in the City which
is subject to special assessments is hereby authorized to prepay in full any
special assessments not previously certified to the Saline County Clerk, provided
there are no delinquent special assessments on the real estate, upon entering an
Escrow Agreement with the City and paying the following amounts in full:
A. All assessment installments which have been levied, if any.
B. All unlevied assessment installments, plus interest at the rate
provided in the bonds issued by the municipality to finance the
improvements resulting in the special assessments, reduced to a
present value based upon the discount rate to be established
monthly by the Finance Director.
C. An annual administrative fee of 50.
Upon such prepayment, a certificate of Special Assessment Prepayment for the
real estate and a copy of the Escrow Agreement shall be issued to the real estate
owner by the Finance Director.
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Section 3. Creation of fund. There is hereby established a Special
Assessment Escrow Fund which shall be used to receive monies paid by real
estate owners in prepaying special assessments under an Escrow Agreement with
the City. Monies held in the Special Assessments Escrow Fund may be invested
by the Finance Director in such manner as permitted by law. In January of
each year, any principal and interest due and the administrative fee shall be
transferred from the Special Assessment Escrow Fund and be shown as revenue
in the Bond and Interest Fund and the General Fund, respectively.
Section 4. Administrative fee. There is hereby established an annual
administrative fee of five percent (5%) of the annual principal and interest due
on the special assessment to be charged to any owner of real estate choosing to
prepay special assessments against the real estate as authorized by this
ordinance. The discounted value of the administrative fee must be paid to the
City before the Certificate of Special Assessment Prepayment can be issued. If
determined to be necessary, the administrative fee may be subsequently modified
by resolution of the Governing Body.
Section 5. Rules and procedures. The City Manager is hereby
authorized to promulgate any administrative rules and procedures necessary to
carry out the intent of this ordinance.
Section 6. This ordinance shall be in full force and effect from and
after its adoption and publication once in the official city newspaper.
Introduced: May 16, 1988
[SEAL]
ATTEST:
Robert K. 8`iles, City Clerk
Passed: May 23, 1988
S "dne /SMayor
`� Y' 9 Y oderber