HENDERSON (KTNV) — The City of Henderson is now able to move forward with its repayment plan for residents at Somerset Park.
The city council voted at its meeting Tuesday, 4-1, to move forward with filing its intent to lien and to move forward with its special assessments.
Henderson City Councilwoman, Carrie Cox was the only person to vote "no" on the item. Cox says she wanted all the information regarding the repayment plan, including how long it would take to repay, before approving.
PREVIOUS REPORT: How much each Somerset Park homeowner will have to pay once repayments start
At the beginning of next year, a special assessment of $8,026.99 will be placed on each property at Somerset Park to repay the city for fixing its water distribution system. The 85-unit condo complex was suffering from financial woes, massive leaks and sinkholes.
If these homeowners can't pay the special assessment within 60 days, they will face a separate $150 fine, plus the payment then turns into a tax lien.
That tax lien will be active starting next fiscal year after July 1. It has to be paid back in four installments each year of the repayment plan.
Confusion over just how long the repayment will be is the main concern for those homeowners at Somerset Park.
"It’s very scary not to know the length of time and not to know if we need to come up with $2,000 every quarter or $1,000 every quarter," said Kendra Day, a Somerset Park resident of more than two years.
Day has five kids and her family is just barely affording to stay there.
“My husband is working two jobs and I, myself, as well," Day said.
Not only will residents have to pay off the tax lien, but an increase in HOA fees will go into effect next year to build up a reserve fund. That fee will be $412 each month.
Day and more than a dozen residents who showed up to Tuesday's city council meeting want answers.
“Try to stick with the original plan and please look out for us," said concerned residents.
“Now it’s in your hands and we ask you for the two years.”
These public speakers are referring to the length of the repayment plan.
On Sept. 3, Henderson Mayor Michelle Romero told the media the plan would last around two years.
WATCH: City will front costs to update water system in Somerset Park, Henderson mayor says
“Tax liens would be typically paid over an eight-cycle period," Mayor Romero said.
This is not set in stone though and was the topic of contention at the meeting.
“We don’t have a lot of control about how those payments are made on that assessment, that goes to the treasurer’s office, ”said Henderson City Attorney Nicholas Vaskov.
The city says the time frame is usually at least two years to pay off a tax lien, but could be more and rarely be less.
Here's a breakdown of what the payments could be. Remember, as of right now it seems like it will be paid off in quarters, four quarters each year, plus the added $150 would be placed on top of the more than $8,000.
- 1 year (4 total payments): $2,044.25 each payment
- 2 years (8 total payments): $1,022.12 each payment
- 3 years (12 total payments): $681.42 each payment
- 4 years (16 total payments): $511.06 each payment
There is no indication of exactly how long the repayment plan will be, so several residents asked me and the city, why Romero said an eight-cycle period in the first place, if it wasn't just up to the city's decision.
I asked that question to Mayor Romero. She told me she stands by the statement she mentioned on Sept. 3, saying that was the information they had at the time. She still says that is the usual repayment plan timeline and says the city will continue to push for cheaper payments.
The motion that passed was not the only one made.
Cox made the first motion to delay a vote until the council's next meeting on Jan. 7, but only Mayor Romero voted "yes" alongside her.
She wanted the information regarding how long it would take for the residents to repay before approving anything associated with the plan.
The motion, which was approved, included a contingency that city staff would discuss the plan with the Clark County Treasurer and report back to the city council with how long the plan will last during its next meeting on Jan. 7.
Day just hopes they can get answers so all residents can adequately prepare for the payments.
“If we can at least get some type of clarity and an honest answer," Day said.
Channel 13 will continue to follow all new developments with Somerset Park and update you on air and online.
