Loading...
HomeMy WebLinkAbout2010 05 10 Regular 601Adoption of Uniform Method for Non-Ad Valorem Assessments-Nuisance Abatement Reimbursement COMMISSION AGENDA Consent ITEM 601 Informational Public Hearing Regular X May 10, 2010 MGR /DE Regular Meeting Autho zation , /� REQUEST: Per the City Commission, the City Attorney presents information regarding the r adoption of a uniform method for the levy, collection and enforcement of non -ad valorem assessments for the purpose of nuisance abatement reimbursement. EXECUTIVE SUMMARY: When the City is required to abate a public nuisance pursuant to City Code to protect life and property, the City attempts to recover the costs and expenses incurred by the City to abate the nuisance. If the property owner does not repay the City for these costs and expenses, the City liens the property and recovers the amount of the lien when, and if, the lien is satisfied. Another alternative to collect these costs and expenses would be for the City to use the uniform non -ad valorem assessment procedure set forth in the Florida Statutes. Initially, the procedure would require the City Commission to adopt an ordinance and to follow an annual non -ad valorem assessment public hearing procedure. The City Commission should consider whether it desires to adopt such an ordinance. CONSIDERATIONS: 1. On February 8, 2010, the City Commission directed that the City Attorney research an alternate way of collecting nuisance abatement assessments. 2. Section 13 -4 of the City Code permits the City to abate nuisances that are a serious and continuing danger to the public where the property owner or tenant fails to heed the notices and enforcement efforts made by the City but where the dangers to the public are not so extreme as to warrant dispensing with prior notice for emergency procedures as set forth in sectionl3 -2 of the City Code. 3. The City Code permits the City to recover the costs and expenses of work performed by the City that was necessary to secure the property or render it safe, including the letting of contracts, pursuant to city purchasing requirements, to repair or remove dangerous conditions and items. 4. Currently, section 13 -4(3), City Code, provides that such costs and expenses constitute a lien on the property. Moreover, section 13 -4(4), City Code, provides that liens for such REGULAR MEETING - MAY 10, 2010 REGULAR AGENDA ITEM "601" PAGE 2 OF 3 contracted work are co -equal with all state, county and municipal taxes and are superior in dignity to all other liens, titles and claims until paid. 5. Sections 197.3631 and 197.3632, Florida Statutes, authorize municipalities to use a uniform, statutory method for the levy, collection, and enforcement of non -ad valorem assessments. We are aware of at least two municipalities, the Town of Windermere and the City of Palm Coast, that utilize this uniform statutory procedure as a mechanism to recover costs for nuisance abatement. 6. If the City desires to utilize this process, it would be required to adopt an ordinance and adhere to the following general procedure, subject to additional requirements as set forth in section 197.3632 and section 197.3635, Florida Statutes: (a) Enter into a written agreement with the property appraiser and tax collector providing for reimbursement of necessary administrative costs incurred in utilizing the uniform procedure, including, but not limited to, those costs associated with personnel, forms, supplies, data processing, computer equipment, postage, and programming. (b) Duly notice and hold a public hearing to adopt a resolution regarding the City's use of the uniform method of collecting non -ad valorem assessments. (c) Duly notice and hold a public hearing between January 1 and September 15 to adopt a non -ad valorem assessment roll. Notice must be provided by first - class United States mail, and by publication in a newspaper, to each person owning property that is subject to the assessment; i.e., to each property owner that has an unpaid invoice for nuisance abatement accomplished by the City's contractor. (d) By September 15 of each year, certify a non -ad valorem assessment roll on compatible electronic medium to the tax collector. Alterations may be made to such roll up to ten days before certification. (e) Compensate the tax collector for the actual cost of collecting non -ad valorem assessments pursuant to statutory requirements. 7. The City Attorney's office has been in contact with the Town of Windermere with regard to their general process. In the Town of Windermere, the process begins when property is cited for a violation and notice is provided to the property owner. If the property owner does not respond by abating the nuisance within the required timeframe, the Town contacts its third party contractor who will abate the nuisance on the property and bill the Town for the work. After the town pays the third party contractor for the abatement work, the Town invoices the property owners, including any banks that may have an interest in the property. If the invoice is not paid within the required timeframe, the Town adds the unpaid assessment to an internal list, which will be adopted on the non - REGULAR MEETING - MAY 10, 2010 REGULAR AGENDA ITEM "601" PAGE 3 OF 3 valorem assessment tax roll. Only properties with outstanding, unpaid invoices are included in the tax roll. The tax collector includes the non -ad valorem assessments on the same tax bill as ad valorem taxes. A Town of Windermere employee indicated that the process appears to work well, as only one out of five invoices remains unpaid for 2009, which is the first year the Town implemented this process. 8. Utilizing non -ad valorem assessments would, in some cases, put the City in a better position to collect nuisance abatements in the event of foreclosures, since under section 197.3632(8)(a), Florida Statutes, non -ad valorem assessments are collected in the same general manner as ad valorem taxes. 9. The City Attorney is requesting direction on whether to proceed with preparation of an ordinance adopting such uniform procedures for the levy, collection, and enforcement of non -ad valorem assessments for the purpose of nuisance abatement reimbursement. FISCAL IMPACT: The Seminole County Property Appraiser has indicated that it does not charge municipalities for its services with respect to non -ad valorem assessments. Therefore, the City's costs would be limited to the actual costs incurred by the tax collector, as well as the City's upfront costs incurred in paying a contractor for nuisance abatement work (which should be reimbursed through collection of the non -ad valorem assessments) and for administrative costs in noticing property owners. It should be noted that, like ad valorem taxes, non -ad valorem assessments are subject to statutory discounts for early payment (for example, property owners receive a 4% discount if they pay in November, a 3% discount if they pay in December, a 2% discount if they pay in January, and a 1% discount if they pay in February, per section 197.162, Florida Statutes). The City should consider accounting for such discounts so that if a property owner pays early and receives a discount, the City is reimbursed for the full amount it paid the contractor for nuisance abatement services. RECOMMENDATIONS: The City Attorney recommends that the City Commission provide direction on whether to draft an ordinance to permit the City to levy, collect and enforce non-ad valorem assessments for the purpose of nuisance abatement reimbursement.