05/14/1990 Meeting - Laserfiche WebLink

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e e both the size of the assessment and the property owner income level. Instead of limiting the assessment to some fixed lot size, this option would limit the assessment to a percentage of income and would defer payment on the remaining assessment. The portion of the payment larger than the maximum would be deferred for IS years or until the property is sold or subdivided, whichever occurs first. As is the case with the current deferral program, the deferred payment would accrue five percent simple interest. Mr. Boles asked whether the City has developed any means to respond to moder- ate-income property owners who own large lots who do not wish to sell or subdivide their property. He suggested the possibility of extending the length of sewer payment time for them beyond the IS-year limit. Mr. Smith said that the length of sewer financing is a council decision. Mr. Gleason noted that money which is being used to pay for sewer construction comes from the City's past investments in the River Road/Santa Clara interceptor sewers. Extending the time limit for sewer cost payment would affect the rate at which this initial investment is recovered by the City. Responding to a question from Mr. Holmer, Mr. Smith said that changes in income will be reported on the state income tax form. Should circumstances change, property owners will be allowed to renegotiate their payment sched- ul e. Mr. Smith said that a decision from Lane County regarding its participation in road repairs will be made soon. The use of County Road Funds for road repairs would provide significant relief to property owners. Responding to a question from Mr. Boles, Mr. Smith said that roads will be repaired to at least the same standard that they were before sewer construction. For inter- ested property owners, it might be possible to consider a street upgrade. Mr. Smith indicated that the City has been successful in securing State Revolving loan Funds and a Pollution Control Tax Credit to help reduce total property owner sewer costs. In an effort to protect its bond rating and because sewer costs have been significantly reduced with the advent of the above programs, staff recommends that the council provide for ten-year fi- nancing. Ms. Ehrman expressed concern that even with the outside aid that the City has received to address affordability concerns, monthly sewer costs, particularly for low-income property owners, represent a significant portion of income. Mr. Boles also pointed out that sewer costs are likely to rise in progressing years. While IO-year financing might be feasible this year, he does not want to preclude the use of IS-year financing if needed to absorb higher sewer cost in future years. The council recommended that area residents be limited to 10-year financing at present, but that the possibility of IS-year finanCing remain open for the future. The council unanimously recommended that area residents be offered the large lot deferral program. ~ At 7:15 p.m., Mayor Jeff Miller adjourned the meeting of the Eugene City Council. MINUTES--Eugene City Council Dinner/Work Session May 14, 1990 Page 4