Council approves payment arrangements for Luda and Virginia Street frontage assessments after residents object to surprise bills

City staff presented the final payoffs for covenant assessments tied to Luda and Virginia Street improvements and asked council for direction on payment arrangements.

City Engineer/Project staff explained certified payoff letters were sent to affected property owners after the project contract was finalized. Several residents told council the bill amounts — roughly $20,000 to $21,000 per parcel in the cited examples — were a financial shock. Speakers asked why the assessments did not appear more clearly in title reports and urged the council to allow long amortization schedules.

Council discussed options staff had proposed: follow existing code and require near‑term payment, offer a multi‑year payment plan (staff suggested 10 years at prime + 2% as a sample), or amend city policy to allow different terms. Councilors debated interest and length; several members expressed reluctance to profit from residents and suggested lower rates and longer terms to reduce hardship. Finance staff ran amortization examples for 15‑ and 20‑year terms during the meeting.

Council Member Deanna (surname not recorded in transcript) moved to approve the payment arrangements “as discussed.” A second was recorded and the motion passed. Council did not record a roll‑call vote in the transcript. Staff will finalize amortization schedules and send formal offers to property owners. The council’s action did not forgive assessments; rather, it authorized staff to structure payment plans for the covenants.