HomeMy WebLinkAbout13.F.2. Refund of Special Assessment Payment
13. F: ;L ·
CITY OF SHAKOPEE
Memorandum
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: Special Assessment Refund
DATE: April 2, 2008
Introduction
The city has been asked to refund the prepayment of a special
assessment for the 2007 reconstruction project.
Background
The situation was presented to staff as the following: A parcel on
Dakota Street was being sold on a contract for deed with the seller
intending that the buyer would pay the assessment with the taxes over
time. The buyer agrees. The seller is a senior citizen who then
mistakenly prepaid the assessment when the levied notice was sent. The
sale was closed in March 2008 and the seller was asking that the
prepayment be refunded.
The city could reinstate the assessment with the taxes for pay 2008 or
2009.
I don't recall this situation ever happening before. The closest
similarity was an error on the parcel number where the prepayment was
refunded and the assessment placed on the correct parcel for payment
with the taxes. According to the City Attorney, refunding the
prepayment would not be prohibited by law.
The prepayment was receipted into the debt service fund for the bonds.
This raises the policy question of under what circumstances would the
city refund a prepayment. Refunding a prepayment for any reason has
been a rare occurrence.
Action
Move to refund the prepayment of special assessments in the amount of
$474.66 for the 2007-2 Street Reconstruction Project for parcel 27-
032002-0 and place the assessment with the taxes for collection.
Gr~OXland
Finance Director
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