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DRAFT POLICY OPTIONS Introduction The Board of County Commissioners has expressed its interest and intent to consider means allowable under State statutes to provide financial assistance to low-wealth residentslproperty owners who could be adversely impacted by any public utility assessment process the Board may have need or desire to establish. Staff has outlined a series of policy options below for Board review and reference. Option # 1: County defers the assessment payment Process Description: The BOCC elects to defer the date when an assessment begins to be collected. Unlike the regular assessment system where 10 percent of the total assessment plus interest on the unpaid balance is collected annually over a 10 year period, the BOCC can choose to delay the onset of collection until the end of the fifth year, for example. Advantages: - Liens against all subject properties are recorded as security for the full amount of the assessment. - Provides the low-income residentlpraperty owner the opportunity to use the first five years to sell the subject property and pay the full assessment out of the proceeds of the sale. - Simple and straightforward; easy to administer. Disadvantages: - Relief assistance is not targeted. Under law, the deferred assessment option would be available to all residents/property owners within the assessment area, not just those meeting low-income criteria. - By deferring assessment collections the County forgoes present day opportunity to accrue funds to help initiate additional public sewer extension projects. The ability to partner in or direct future projects with assessment revenues is delayed. - By deferring assessment collections the County presents the low-income resident/property owner with a "balloon payment" due and payable in full at closing, dramatically reducing any realized profit to provide suitable replacement housing, income security, reinvestment opportunity, etc. - The deferred assessment is dependent upon the vagaries and unpredictability of the real estate market -and may be detrimental to low-income residents/property owners more likely to be inexperienced and unskilled at property negotiations.