TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Director
Stephanie Katsouleas, Public Works Director
Henry Mitzner, Controller
SUBJECT:Title
Consider Assessment Deferment Program for Qualifying Households in Utility Underground Districts (Finance Director Charelian and Public Works Director Katsouleas).
DISCUSS AND PROVIDE DIRECTION
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Recommended Action
RECOMMENDATION:
Staff recommends that City Council discuss and provide direction regarding providing an Assessment Deferment Program (ADP) for qualifying households in Utility Underground Assessment Districts (UUADs or Districts) that are formed following a Proposition 218 majority protest process.
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FISCAL IMPLICATIONS:
The fiscal implications of the ADP are unknown at this time and will depend on the number of properties that go to bond, and qualifying households that apply to the program and the funding parameters established by City Council.
BACKGROUND:
On March 21, 2006, City Council approved the creation of a financial assistance (loan) program to help those households with limited income cover the cost of utility undergrounding upon formation of a UUAD. This followed the higher-than-expected assessments presented to property owners in Districts 2, 4, and 6, and concerns about the ability of some residents to afford the annual assessment payments for undergrounding. The program allowed qualifying households to defer all or a portion of their annual debt service assessments until the sale or transfer of their homes through a loan provided by the City at a fixed interest rate. The 2006 ADP loan parameters included:
* Either the applicant or spouse must be 62 years of age or greater; or blind, or disabled in accordance with standards used by the Internal Revenue Service for tax return purposes.
* The assessment for which the loan is being made must be for the applican...
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