HomeMy WebLinkAboutOrdinance 5604 01/06/1992
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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.
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Ordinance No. 5604
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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. .
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Mayor \
ATTEST
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Ci ty Recorde'r
REVI EWED & APPROVED
AS TO FORM ~ \
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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
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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.