The Kenai City Council adopted a resolution authorizing changes to payment terms of several special assessment districts in an effort to resolve the remaining delinquent accounts. Nine accounts remain from the five different special assessment districts, all of which are in delinquency status. The repayment term of each district varied based upon the size, but the penalty and interest terms were the same at 10% annual interest and 10% penalty on delinquent balances.
Finance Director Terry Eubank tells the Kenai City Council:
“We have nine parcels with remaining special assessments on them. Those parcels reside in five different districts that we’ve gone over time. At this point, all nine of those parcels are in delinquency status. What the administration is attempting to do is to provide a path where we can resolve those delinquencies. Currently the city’s interest is protected by a lien filed on these pieces of property. Anytime that property transacts, or financing is sought on those properties, our liens do pop up and creates some issues for those people that are trying to do these things.”
The resolution amends the payment terms of the Set Net Drive Street Improvement Special Assessment District, the Aliak, McCollum, Japonski Streets Improvement Special Assessment District, the Thompson Park, Beaver Creek Alaska, Mack, Valhalla Heights and Sunset Rim Subdivisions Street Improvement Special Assessment District, the South Ames Road LID Street Improvement District and the James Street and Kiana Lane Improvement Special Assessment District.
Eubank adds:
“What we’re trying to do is we’re trying to freeze the accounts. We’re not proposing to forgive any penalty or interest that is accrued. As far as to date, the terms of those payment plans are of each of these districts would remain intact as far as the current balance. What we’re proposing is on a go-forward basis to freeze the accounts on eight of these with a current balance accumulate no more penalty and interest provided the property owners will sign a confession of judgement with the city and they will also enter into a payment plan for up to ten years.”
Eubank states that properties who refuse these new terms will remain subject to the original payment terms of each special assessment district.