HomeMy WebLinkAboutOrdinance 5740 05/16/1994
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CITY OF SPRINGFIELD, OREGON
5740 (SPECIAL)
ORDINANCE NO.
AN ORDINANCE ADDING AS LIENS, PAYMENTS MADE BY THE CITY OF
SPRINGFIELD IN ACCORDANCE WITH ORS 312.170 TO REMOVE REAL PROPERTY FROM
THE FORECLOSURE LIST OR PROCEEDINGS FOR THE FORECLOSURE OF LIENS FOR
DELINQUENT TAXES, DIRECTING SAID PAYMENT AMOUNTS TO BE NOTED ON THE CITY
LIEN DOCKET, AND DECLARING AN EMERGENCY.
The CITY OF SPRINGFIELD DOES ORDAIN AS FOLLOWS:
Section 1: In accordance with ORS 312.170, the City of Springfield has utilized its
funds to remove property from the list or proceeding for the foreclosure of liens for
delinquent taxes. A listing of those payments made by the City of Springfield for such a
purpose is attached hereto as Exhibit" A" and incorporated herein by reference.
Section 2: Those funds utilized and payments made which are more particularly
described and set forth in Exhibit "A" attached hereto and incorporated herein by reference,
shall be and hereby are declared to be liens against the properties more particularly
described and set forth in Exhibit "A".
Section 3: The assessment liens described herein shall bear interest at the rate of
1 9 percent per annum commencing on the date on which the delinquent taxes were paid as
shown on Exhibit "A" and continuing until paid in full.
Section 4: The Finance Department shall establish: separate accounts for each lien
assessed; a repayment period of six months; a semi-annual billing for the respective
property owners; and late payment penalty and foreclosure cost provisions which conform
to our existing Bancroft assessment policy.
Section 5: The Policy Statement designated as Exhibit "S" attached hereto and
incorporated herein by reference is hereby adopted as Finding of Fact in support of this
Ordinance.
Section 6: In the event that the amount noted on the lien docket is not paid as
specified in this Ordinance, the lien may be foreclosed in accordance with the provisions of
the Bancroft foreclosure procedures, ORS 223.505 through 223.650. The lien may also be
included in any foreclosure proceedings for foreclosure of delinquent Bancroft liens on the
respective properties.
Section 7: It is hereby found and determined that matters set forth in Sections 1
through 6 hereinabove are matters affecting the public health, safety and welfare and that
an emergency therefore exists and that this Ordinance shall therefore take effect
immediately upon its passage by the Council and approval by the Mayor.
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Ordinance No. 5740
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ADOPTED by the Common Co~ncil of the CMY of Springfield by a vote of 6
for and 0 against, this 16t day of ay , 1994.
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Mayor
ATTEST
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City Recorder'
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Of:f~C~ OF CITY ATTORNEY
C!TY C:~ ~p~;m.jGr-IELD
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CITY OF SPRINGFIELD, OREGON
Ordinance No. 5740
Page 3
EXHIBIT "A"
Privately owned properties kept out of Lane County foreclosure by the City of Springfield
paying the delinquent property taxes and associated interest and penalties.
OWNER NAME & ADDRESS ACCOUNT
TAX
MAP/TAX LOT YEAR
TAXES/I NT
PENAL TI ES
Bristol, Dennis D. & V.L.
11 8214
17023114021001989-90 $1,275.60
penalty 215.29
TOTAL
$1,490.89
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CITY OF SPRINGFIELD
Ordinance No. 5740
Page 4
EXHIBIT "B"
CITY OF SPRINGFIELD
POLICY FOR RECOVERY OF PROPERTY TAXES
Purpose
To establish an equitable interest rate and repayment term for the repayment of property tax
payments made by the City to remove real property from Lane County foreclosure.
Interest Rate
The interest rate charged by the City shall be significantly greater than the County's rate so
that there shall be a definite disadvantage to property owners in allowing the City to pay
their property taxes. Because property owners can both extend the time for tax payments
by 18 months and reduce the amount from all of their tax liability to only the oldest year of
the tax by letting the City pay their property taxes for them, the City needs to establish a
strong disincentive to this practice. Setting a 3% difference in the County rate provides that
disincentive.
Repayment Term
Under the authority of ORS 312.170 the City may use municipal funds to remove properties
in which it has a financial interest from Lane County's foreclosure. The statute
(ORS 312.170(2)) specifically provides that the City "may add to its lien the amount so
disbursed and cause that amount to be noted on its lien docket" and then specifies that the
"amount so disbursed shall be recoverable as part of the lien of the municipal or other public
corporation" and that "the amount so disbursed may be added to the original lien and
recovered as part thereof."
It shall therefore be the policy of the City to add these payments to its lien docket and to bill
the property owner for the repayment of the property taxes paid by the City semiannually
with the entire property tax lien becoming due and payable at the time of the first billing.
The billing cycle and repayment term are justified and equitable based on the following
considerations:
1. The delinquent taxes were already three years past due at the time that the City
paid them on behalf of the property owner.
2. The City has no obligation to extend further credit or financing to the property
owner.
3. A semiannual cycle coincides with the City's Bancroft assessment billing policies.