HomeMy WebLinkAboutORDINANCE 0944-1984i
suggested by: Councilman wise
CITY OF KENAI
ORDINANCE NO, 944-84
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA,
AMENDING KMC 1.75.010 AND KMC 16.10.130 RELATING TO INTEREST
CHARGED ON ASSESSMENT DISTRICTS.
WHEREAS, KMC 16.10.130 provides that the Council may set any rate
of interest it deems appropriate on unpaid installments on
special assessment districts, and
WHEREAS, KMC 1.75.010(b) provides that delinquent assessments
shall be charged a rate of interest of 10%, and
WHEREAS, the rate of interest on delinquent accounts should be
equal to the rate set for the payment schedule when the assess-
ment roll is confirmed in accordance with KMC 16.10.130.
NOW, THEREFORE, BE li ORDAINED BY THE COUNCIL OF THE CITY OF
KENAI, ALASKA, that:
Section 1: KMC 1.75.010 be amended as follows:
Computation: (a) Whenever a penalty charge for late
paymon ability charge, assessment charge, or any other
charge of the City shall be due the City of Kenai, such
penalty rate shall be computed in the amount of 10: on the
total sum due.
(b) Whenever interest is due on an unpaid account,
charge, or assessment of any kind to the City of Kenai, the
rate of such interest shall be computed at the rate of 10:
per annum, except that interest charged on special assess-
ment districts (CONFIRMED IN ACCORDANCE WITH KMC 16.10.130
AFTER JUNE 4, 19831 shall be in accordance with provisions
3f Title 16 of the -City Code S FLN ANNURI.
�(c) Unless otherwise specified, a penalty charge shall
be due on any sum, charge, or payment not paid to the City
withlee Lioe fip-at twesitty-five days after due date.
Section 2: KMC 16.10.130 be amended as follows:
Resolution Confirminq Assessment Roll and Fixina
Payment., After the public hearing and determination of the
assessment roll, Council, by resolution, shall confirm the
assessment roil of the local improvement district. The
resolution shall provide for the levying of the aaaessmenL
against the property included within the district and may
establish a sinking fund for payment of principal and
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Ordinance `/44-84
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interest on any bonds which may be sold to finar;c:e the
improvement. The resolution shall also fix tiff:4s of
payment; schedule of payments, rate of interest on unpaid
installments, the date of delinquency of assessments, and
the penalty and interest to be paid on delinquent assess-
ments. On delinquent assessments, penalty [AND INTEREST]
shall be in accordance W th the provisions of KMC 1.75.010.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, thir; 5th day
of July, 1984, IrW
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ATTEST:
7 e9he an, C i ty er
First Reading: June 6, 1984
Second Reading: July 5, 1984
Effective Date: August 5, 1084 M-4--
MEMO TO: Kenai City cnuacil
FROM: Charles A. Brown, Finance Director
DATE: May 31, 1984
SUBJF.C'r: Ordinance : 944-84, Interest on Assessments
At the May 16, 1984 Council Meeting, Councilman Wise inquired about
the rate of interest on assessments. The next day, he and I had
further conversation on the subject.
The problem with the City Code is more of confusion and poor wording
than anything else. Kt4C 16.10.130 already allows Council to set any
rate of interest it deems proper when confirming an assessment roll.
The confusion is really in KMC 1.75.010 (b). That paragraph is meant
to set a rate of interest ou delinquent accounts. Unfortunately, the
word "unpaid" is used, rather than the word "delinquent." "Unpaid"
could be interpreted to means assessment installments that have not
yet come due, as well as delinquent installments.
The wap the Code reads now:
1) The interest rate on installment assessments is set by
Council.
2) The penalty rate on delinquent installments is 10%.
3) The interest rate on delinquent installments is 10%.
The way Y'sl askiax the Code to be changed:
1) The interest rate on installment assessments is set by
Council.
2) The penalty rate on delinquent installments is 10%.
3) The interest rate on delinquent installments is set by
Council (hopefully, this would be set at the same rate
as on the installment at #1 above).
Therefore, this ordinance does very little, except to clarify
language in the Code. The only change is striking the fixed rate of
interest of 10% on delinquent payments.
Today, I talked with Councilman Wise again. He is thinking about
changing the Code so that the interest rate is linked in some manner
to the market. If Council wants to pursue that, please introduce
Ordinance # 944-84 on June 6, 1984, but set the public hearing for
July S, 1984. This will allow me some time to work on it.
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