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Resolution 2009-34

(A resolution providing for an interest rate and penalty fees for installment payment agreements)


WHEREAS, the City is required to allow LID assessments and SDCs to be paid 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 LID assessment ordinance;

WHEREAS, HRMC Section 12.07.100 provides that interest is to be paid on SDCs paid in installments in accordance with ORS Chapter 223, which also provides that the installment agreement may include such payment terms as the governing body may provide;

WHEREAS, pursuant to HRMC Chapter 12.09 and Resolutions 2005-12 and 2008-18, the City requires property owners of annexed property to reimburse the City for the withdrawal costs associated with the withdrawal of the property from Ice Fountain Water District (“Ice Fountain”) and West Side Rural Fire Protection District (“West Side”);

WHEREAS, it is in the City’s financial best interests to allow withdrawal costs to be paid installments in accordance with the City’s Intergovernmental Agreements (“IGAs)”with Ice Fountain and West Side, in which case it is necessary to set the interest rate and payment terms for installment payment agreements for withdrawal costs;

WHEREAS, the City may have other instances in which it is desirable to permit payments to be made on an installment basis but for which no terms currently exist;

WHEREAS, the interest rate and penalty fee proposed below take into account the City’s financial and administrative costs relating to allowing payment to be made in installments 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 within the State of Oregon and are fair and reasonable.

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

Length:            In accordance with state statute or as determined by the Finance Director, but in no event no more than 10 years.  For withdrawal costs installment payment agreements, the length shall not exceed the length of time for payment under the applicable IGA.
Payments: The Finance Director may determine whether payments should be annual, semi-annual, or more frequent, unless otherwise required by state law.
Interest rate: 6.75%.
Penalty fee: $100 per late payment, plus accrued unpaid interest, if payment is not received by the due date.

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

 

       ___________________________
       Arthur Babitz, Mayor

_____________________________
Jennifer McKenzie, City Recorder