1/20/2011 SEWER COMMISSION Minutes

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-17- EXAMPLE Betterment Or Special Assessment Payment-Apportionment-Interest • Sewer assessment$4000 committed April 1, 2000 -Due May 1, 2000. • Payment of $1000 made April 21, 2000 (no interest due on $1000) leaving balance of $3000. • On September 1, 2000, owner wants to pay an additional $1000. Interest is owed on $1000 from May 1, 2000 to September 1, 2000. • Unpaid balance of$2000 must be added to a tax no later than FY2002 actual tax bill in fall 2001 with interest (Note assessors may add unpaid assessments originally committed during calendar year 2000 to FY2001 actual tax bill so long as property owners had at least 30 days to pay full assessment without incurring interest, as is case here) • If entire unpaid balance of $2000 is added to FY2002 tax bill, interest on that balance would run from May 1, 2000 to October 1, 2001. (If added to FY2001 tax bill instead, interest would run from May 1, 2000 to October 1, 2000). • Alternatively, the $2000 unpaid balance can be apportioned for up to 20 years, at property owner's direction, or if no directive is given, at the assessors' option. • If$2000 balance is apportioned for 10 years, assessors must add first $200 no later than FY2002 actual tax bill with interest on unpaid balance of $2000 from May 1, 2000 to October 1, 2001. In second year, $200 would be added to FY2003 bill with one year's interest (October 1, 2001 to October 1, 2002) on unpaid balance of$1800 ($2000 - $200) and so on until the final $200 portion is added to FY2011 tax bill with one year's interest (October 1, 2009 to October 1, 2010) on unpaid balance of$200. (Again assessors may add apportioned assessments originally committed during calendar 2000 to FY2001 tax bill so long as property owners had at least 30 days to pay the full assessment without incurring interest, as is case here. If first $200 was added to FY2001 bill instead, interest on unpaid balance of$2000 would run from May 1, 2000 to October 1, 2000, etc. until final portion is added to FY2010 tax bill with one year's interest on unpaid balance of$200 from October 1, 2008 to October 1, 2009). • On August 20, 2003, property owner decides to prepay in full. Assessors commit remaining unpaid balance with interest from October 1, 2002 to August 20, 2003. Assuming that the first $200 was added to the FY2002 tax bill, the interest would have been calculated on an unpaid balance of$1600.