Minutes-04/07/1964

Minutes of Special Meeting, April 7, 1964, with Ray Ellender of Carlton Beh Company, Des Moines. Present: Glenn Potter, Bill Verry, Wayhe Stratton, Bob Svatos Wayne Reed of Powers & Associates Absent: Ted Spivey Mr. Ellender stated he went through the spread and took valuations and created the deficiencies of $4,368, which are the properties which are assessed over 25% of the value of the property with the improvement in place. On assessing, it is provided that you start out by having a hearing on Resolution of Necessity. It should be published in the Ioa City paper and also posted and a copy must be mailed to each of the people who are assessed. The hearing must be at least twenty days after first publication. In the meantime, the engineer has prepared his preliminary assessment list based on actual value of the property plus the cost of the improvement in place. Then you can assess up to 25% of this value. Anything over 25% has to be paid from the general funds of the city. At the hearing, if the objections are minor, you go ahead and advertise for bids. You can award contract only to bidders that are within 10% of the estimate. This is for the protection of the property owner. You award the contract and the job is built. Final plat and schedule is then prepared by the engineer based on the ACTUAL cost. It is placed on file. Have another hearing. Again the property owners must be notified and it should be published and posted. Objectors can object only to the cost. Unless they come in and object they waive their rights. Then the Council has a right to reduce the assessments, but always remember that the hearing you have is for objectors only. If you cut one assessment, you are going to have everyone else in town who wasn't there at the meeting objecting. In a 30-day period, you will collect a minimum of 30%--average of around 40%. After the 30-day period, you set up the amount of bonds. 20% collateral cushion: You will levy the $49,000 of unpaid assessments on special assessment bonds. You certify those over to your County Auditor for collection. Property owners have 10 years to pay them. The bond attorneys will not let you issue $49,000 in bonds because they are junior to general taxation. A property owner could default on taxes and his property could be sold on taxes. The guy who doesn't pay his taxes has a tax certificate and tax deed is issued against his property. The guy who buys the property does not have to pay the assessment. Three years in general taxes and 90 days after the third year you are notified. You certified and levied over to the Auditor $49,000. If everyone in Tiffin pays in the next 10 years, you get your $8,000 back. You have made it up in general obligation funds. It seems high for the simple reason that your one mill produces so little--compared to a large city. Also, I really think you're going to have to make a decision as to which way you are going as far as financing. It seems to me that probably the best way to approach it is to start out by assessing it all, then if you have your Hearing and there is too much objection, you can go back to your engineer and have him strike assessments on the plant and use Plan #2. You can't go back and start again at the lowest. Start out on the theory of assessing it all, then go to a Hearing.