Minutes-04/07/1964 (2)

Minutes of Special Meeting, Tiffin Council, April 7, 1964, with Ray Ellender of Carlton Ben Co., Des Moines, Iowa Present: Glenn Potter, Bill Verry, Wayne Stratton, Bob Svatos, also Wayne Reed of Powers & Associates Mr. Ellender stated that he went through the spread and took valuations and created deficiencies of $4,368 which are assessed over 25% of value with the improvement. On assessing, it is provided you start out by having a Hearing on Resolution of Necessity. It should be published in the Iowa 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 20 days after first publication. In the meantime, the engineer has prepared his preliminary assessment list based on actual value of the property plus cost of the improvement in place. Anything over 25% of this has to be paid from 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. Then you have another Hearing. Again the property owners must be notified and it shall 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 the 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 at the meeting objecting. In the 30 days period, you will collect a minimum of 30% of the assessments—it averages 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 ten 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 the property could be sold on taxes. A 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 the plant assessments and use Plan #2. After you issue the bonds and get them out of the way, they are going to insist that your sewer rental is going to be enough to pay for the financing and maintenance. If this fund begins to show a profit, invest excess funds in government bonds @ 4.15 and have them mature in 1974. Then cash your government bonds and call in your sewer bonds and make the funds optional for water.