What is an Assessment District?
An Assessment District is a means for property owners to finance
desired improvements in the public right-of-way that the City typically does not or cannot
fund. Such improvements can include the paving or repaving of alleys, the undergrounding
of power lines, the installation of sidewalks, and the upgrading or installation of new
street or alley lighting. Through a process dictated by state law (summarized on the back
of this pamphlet) the property owners agree to have the City arrange for the issuance of a
bond to pay for the improvements and, once the project is completed, have the annual
payments included in their property tax bill.
What are the actions required
to determine if an Assessment District should be formed?
A property owner acting in the lead for this process contacts the
City at the telephone number on the back of this pamphlet. The City will then prepare a
petition that must be signed by all of the affected property owners. If two thrids of
those signing the petition are interested in forming an assessment district, the City will
conduct a Cost and Feasibility Study for the desired improvements.
After the study is completed, the City will mail to each affected
property owner the estimated project cost and their estimated prorated share of the costs.
Included in this mailing will be a postcard survey card, addressed to the City, for the
property owner to indicate whether he or she still supports the formation of the
assessment district.
If property owners representing 2/3 of the area benefiting from
the requested improvements are in support of the project, the City will proceed with the
formation process.
The postcard survey does NOT commit the property owners to finance
the project. It only indicates sufficient support for the City to go forward with the
assessment district formation process.
How is the Assessment District
formed?
The formation process starts with the preparation of an Engineer's
Report which includes construction plans, a detailed cost estimate, a map showing all of
the properties to be included in the district, and the estimated assessments for each
property. The City Council then approves the Preliminary Engineer's Report, adopts a
Resolution of Intention to form the Assessment District, sets a public hearing date, and
authorizes advertising for construction bids. Forty-five (45) days before the public
hearing, each affected property owner will be mailed a Notice of Public Hearing and an
official Assessment Ballot showing their proposed assessment.
The ballots are due by the end of the public hearing. At the end
of the public hearing, the ballots will be tabulated. If the returned ballots favor the
project by at least 50% (based on the assessment amount), the City Council may approve the
District and award the construction contract.
When does construction begin and
assessments are levied?
Once the Assessment District is approved by the City Council,
construction of the improvements will commence under the direction of the City Engineer.
The City will also arrange for the issuance of the bonds that will finance the
Improvements. The County Tax Assessors Office includes the assessment amount on annual
property tax bills within the District for each property owner's share of the annual bond
payment. Bond payments typically range from 10 to 15 years and can be paid off early if
the property owner so desires.
How long will this process take?
From the time the initial petition is received by the City until
the improvements are completed typically takes up to two years, depending on the type of
improvements. Sidewalk and alley paving require less time while lighting and utility
undergrounding require more. |
