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Resolution 2009-22

(A resolution providing for an interest rate and penalty fees for West Oak LID)


WHEREAS, on July 13, 2009, the City Council determined the amount of the final assessment to be charged against each property owner in the West Oak Local Improvement District (“West Oak LID”) and has assessed each property within the West Oak LID;

 WHEREAS, Hood River Municipal Code (HRMC) Section 13.16.140 provides that assessments must be paid in full within 20 days of the notice of assessment, or may be paid in installments upon application to the City;

WHEREAS, HRMC Section 13.16.180 provides that “[i]nterest shall be charged on all applications to pay assessments in for local improvements in installments. . . [;]”

WHEREAS, HRMC Section 13.16.190 provides that interest rates and penalty fees on assessments may be established by the Council by resolution if not established in the assessment ordinance;

WHEREAS, interest rates and penalty fees were not established in the assessment ordinance for the West Oak LID;

WHEREAS, the interest rate and penalty fee proposed below take into account the City’s financial and administrative costs relating to assessments and collection.  The interest rate and penalty fee does not take into account the cost of issuance of bonds as no bonds will be issued; and

WHEREAS, the interest rate and penalty fee proposed below reflect typical rates and fees for local improvement district assessments within the State of Oregon and are fair and reasonable.

 NOW, THEREFORE, BE IT RESOLVED by the Hood River City Council that:

West Oak LID assessments paid in installments shall be subject to the following terms and conditions:

Length:            10 years
Payments: Annual payments, due by September 1 of each year, with the first installment due on September 1, 2009
Interest rate: 6.75%
Penalty fee: $100 per year, plus accrued unpaid interest, if payment is not received or postmarked by September 1 of the year in which the payment is due.

 
Approved by the Hood River City Council the ______ day of ________________, 2009, to take effect immediately.

 

       ___________________________
       Arthur Babitz, Mayor

_____________________________
Jennifer McKenzie, City Recorder