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HomeMy WebLinkAboutOrdinance 5663 11/02/1992 . . . ~. CITY OF SPRINGFIELD, OREGON ORDINANCE NO. 5663 (SPECIAL) AN ORDINANCE ADDING AS LIENS, PAYMENTS MADE BY THE CITY OF SPRINGFIELD IN ACCORDANCE WITH ORS 312. 170 ill REMOVE REAL PROPERTY FROM THE FORECIDSURE LIST OR PROCEEDINGS FOR THE FORECI.DSURE OF LIENS FOR DELINQUENT TAXES, DIRECI'ING SAID PAYMENT AMOUNI'S ill BE NOI'ED ON THE CITY LIEN IXX:KET, AND DECLARING AN EMERGENCY. The CITY OF SPRINGFIELD OOES ORDAIN AS FOLI.aVS: 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 pu:qx>se is attached hereto as Exhibit "A" and incorporated herein by reference. Section 2: Those funds utilized and payments made which are ,rrore particularly described and set forth in Exhibit "A" attached hereto and incorporated herein by reference, shall be and he:i:eby are declared to be liens against the properties rrore 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 arnllllU carrmencing 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 rronths; a semi-annual billing for the respective property owners; and late payment penalty and foreclosure cost provisions which confonn 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 detel.wned that matters set forth in Sections 1 through 6 hereinalx:>ve are matters affecting the public health, safety and welfare and that an emergency therefore eY~sts and that this Ordinance shall therefore take effect immediately upon its passage by the Council and approval by the Mayor. . . . .' Ordinance No. 5663 Page 2 6 AOOPI'ED !?y the Corrm::m Council Of the City, of Soringfield by a vote of for and 0 against, this 2nd day of NovemDe~ 1992. - PuJl)J~~ Mayor ATl'EST ~~euuJJft:~ City Recorder r.i::\r; ~2\rf~:J/. III APP~~10VED IJJ TO FORM =~ ~<;> ~~\-\. ~ '- 6 A~ f.Jf.TE: _ D <..'-\ :? \ \~s..:\2- OFFICE Or- CITY ATTORNEY (:;1'V OF SPRI[\~Gr-!ELD . . . - . CITY OF SPRINGFIELD, OREGON Ordinance No. 5663 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 Donald & Roberta Fairchild 2421 North 17th Place Springfield, OR 97477 TOTAL ACCOUNT # MAP/TAX LOT TAX YEAR TAXES/INT PENALTIES 1002342 1702344106801 1987-88 $ 1,352.58 1988-89 1,231.39 penalty 308.05 2,892.02 Attachment 2-3 - .- ',\' ,. . CITY OF SPRINGFIEID Ordinance No. 5663 Page 4 EXHIBIT "B" CITY OF SPRINGFIEID POLICY FOR RECOVERY OF PROPERrY TAXES Purpose 'Ib establish an equitable interest rate and repayment tenn for the repayment of property tax payments made by the City to rerrove 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 nonths and reduce the arrount 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 Tenn Under the authority of ORS 312.170 the City may use municipal funds to rerrove properties in which it has a financial interest from Lane County's foreclosure. The statute (ORS312.170(2)) specifically provides that the City "may add to its lien the arrount so disbursed and cause that arrount to be noted on its lien docket" and then specifies that the "arrount so disbursed shall be recoverable as part of the lien of the municipal or other public corporation" and that "the arrount so disbursed may be added to the original lien and recovered as part thereof" . It shall therefore be the p:::>licy 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 semiarmuall y with the entire property tax lien becoming due and payable at the time of the first billing. The billing cycle and repayment tenn 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. .1 3. A semiarmual cycle coincides with the City's Bancroft assessment billing policies.