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HomeMy WebLinkAboutOrdinance 5604 01/06/1992 . . . CITY OF SPRINGFIELD, OREGON ORDINANCE NO. 5604 (SPECIAL) 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 19 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 "B" 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. . . . Ordinance No. 5604 Page 2 ADOPTED by the Common Council of the City of Springfield by a vote of 5 for and 0 against, this 6th day of January , 1992. . ~c.jJJ 'M~ Mayor \ ATTEST ~~ Ci ty Recorde'r REVI EWED & APPROVED AS TO FORM ~ \ _~O~~ \")~ \.-4A~_ DATE: D~c "2,. \~,,\ OFFICE OF CITY ATTORNEY CITV OF SPRiNGFIELD . CITY OF SPRINGFIELD4 OREGON Ordinance No. 560 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. TAX TAXES/INT ACCOUNT # MAP/TAX LOT YEAR PENALTIES 118214 1702311402100 1987-88 $ 1,473.79 1227659 1702311402602 1987-88 832.50 118289 1702311402700 1987-88 . 592.33 1098662 1703254100700 1987-88 8,172.37 TOTAL $11,070.99 . . .. . . . CITY OF SPRINGFI~04 Ordinance No. 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 semi-annually with the entire property tax lien becoming due and payable at the time of the first billing. The billing cycle and repayment term is 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 owners. 3. A semi-annual cycle coincides with the City's Bancroft assessment billing policies.