Chapter 3.16
SPECIAL ASSESSMENTS
Sections:
3.16.010 Authorized improvements.
3.16.030 Property to be assessed.
3.16.050 Amount to be assessed.
3.16.060 Costs of improvements.
3.16.070 Council initiated improvement districts—Authorized.
3.16.080 Council initiated improvement districts—Procedures for creation.
3.16.100 Petition initiated improvement districts—Authorized.
3.16.110 Petition initiated improvement districts—Public hearings and notice thereof.
3.16.130 Computation of assessments.
3.16.140 Levy of assessments—Notice of hearing on objections.
3.16.150 Hearing on objections—Signing of assessment roll.
3.16.160 Notice to owner of assessment.
3.16.170 Assessments to be lien on property.
3.16.180 Assessments to be binding.
3.16.200 Reassessment—To be made where original assessment invalidated.
3.16.210 Reassessment—Valid notwithstanding irregularities.
3.16.220 Foreclosure of liens for unpaid assessments.
3.16.010 Authorized improvements.
A special assessment district may be initiated either by council or by petition for any public improvements including but not limited to the following:
A. Streets, alleys, curbs and gutters, driveways, curb-cuts and sidewalks;
B. Storm sewers or drains;
C. Sanitary sewers;
D. Parks or playgrounds;
E. Off-street parking facilities;
F. Changes in channels of streams or watercourses;
G. Bridges, culverts, bulkheads, embankments or dikes for streams or watercourses;
H. Water supply system including water mains, water connections and fire hydrants. (Ord. 97-02 § 1 (part): prior code § 25-100)
3.16.020 General limitations.
Notwithstanding any other provision of this chapter, the city may:
A. Refuse to proceed with the construction of any improvements or the creation of any district, if deemed not in the public interest, whether council or petition initiated; and
B. Advance or delay the construction of any improvements or the creation of any district based on city priorities, available funding, need to coordinate with other projects or any other reason deemed by the city to be in the public interest. (Ord. 97-02 § 1 (part): prior code § 25-100.1)
3.16.030 Property to be assessed.
The council may assess for an improvement any real property, or any interest in real property specially benefited. Specially benefited property may include abutting, adjoining, adjacent, contiguous, noncontiguous or other property or interest in property benefitted directly or indirectly by the improvement. The property to be assessed may include any property which is otherwise, for any reason, exempt from taxation by law. A benefitted property may be included in whole or in part in more than one special assessment district. (Ord. 97-02 § 1 (part): prior code § 25-101)
3.16.040 Property owner.
The person whose name is listed on the latest city tax roll as the owner of the property to be assessed is presumed to be the legal owner of the property. If the property owner is unknown, the property may be assessed in the name of the “unknown owner.” No assessment is invalidated by a mistake, omission or error in the name of the owner if the property is correctly described. (Ord. 97-02 § 1 (part): prior code § 25-102)
3.16.050 Amount to be assessed.
The council may assess one hundred percent of any or all costs of a public improvement against each parcel of property benefitted by the improvement. Unless a specific method of computation of the benefit to the property is expressly provided for ascertaining the amount to be assessed against the property benefitted by a particular improvement, the council shall assess each parcel of property in a special assessment district in proportion to the value of the benefit received from the improvement using any reasonable method of apportionment.
Unless the council determines otherwise, the following general standards are applicable for assessments for public improvements:
A. The city shall pay one hundred percent of the cost of the following improvements:
1. Reconstruction and rehabilitation of existing improvements;
2. Sewer interceptor and collector improvements;
3. Water transmission mains, supply and storage;
4. Storm sewer collectors and regional drainage improvements; and
5. Collector roads; and
6. Sidewalks.
B. The city may pay up to fifty percent and the property owners shall be assessed for the balance of the cost of the following improvements:
1. Local sewer service improvements;
2. Local water service improvements;
3. Minor streets;
4. Local drainage improvements; and
5. Underground electric and telephone utilities.
C. The property owners shall be assessed one hundred percent of the costs of the following improvements:
1. All improvements to new subdivisions; and
2. All improvements to which the council cannot or does not desire to contribute city funds. (Ord. 05-09 § 1; Ord. 97-02 § 1 (part): prior code § 25-103)
3.16.060 Costs of improvements.
The costs of an improvement shall be the actual costs of the improvement, including acquisition of interests in land for the improvement, design, engineering, inspection, construction, management, administration, overhead, professional services, bond costs and interest incurred as a result of the improvement and all other costs resulting from the construction of the improvement. The council may by resolution authorize the issuance and sale of special assessment bonds to pay all or part of the costs of an improvement in a district. Before the council may issue special assessment bonds, it shall establish a guarantee fund and appropriate to the fund annually a sum adequate to cover any deficiency in meeting payments of principal and interest. In anticipation of delinquent assessments there may be added to each separate assessment appearing on the assessment roll a sum not less than three percent nor greater than ten percent of the assessment. The charge shall constitute a reserve to be used only if payment of assessments become delinquent to the extent that any amounts due on debt incurred by the city for financing the property owners’ share of the local improvement district in question cannot be met as they become due. Any balance remaining in the reserve after all debt incurred relative to the special assessment district in question has been repaid shall be refunded pro rata to such property owners within the special assessment district on whose lots the assessments have been paid promptly during the full period of the payment schedule without being in default at any time. Any refunds due shall be paid to the then owner of the lots as shown on the tax roll for the year in which the refund is declared. No such refund shall be in an amount greater than the original percentage charge assessed that lot. The property benefitted by the improvements shall be pledged to secure the payment, and the lien so created thereon shall constitute a lien on the property junior only to real property taxes and any prior assessments. Interest shall be calculated from the first day that actual costs from bond issue or municipal funds are used for the improvement, whichever first occurs. (Ord. 97-02 § 1 (part): prior code § 25-104)
3.16.070 Council initiated improvement districts—Authorized.
Council planning to make a public improvement shall establish local special improvement districts and the cost of the improvement shall be assessed against the property in any such local special assessment district. Council may determine upon and use any method for spreading the assessment among the properties within the district, which bears a reasonable relationship to the benefit received by the properties, including but not limited to assessments measured by the front foot and by the number of square feet in the property benefitted. The cost per unit of assessment need not be the same for all parcels within the district, but insofar as is reasonable, properties similarly situated shall bear the same cost per assessment unit. (Ord. 97-02 § 1 (part): prior code § 25-105)
3.16.080 Council initiated improvement districts—Procedures for creation.
A. At the council’s direction the city manager shall cause a survey and report to council to be made concerning the needs for and the estimated cost of the district. The report shall contain a plan defining the district, outlining the properties to be assessed and showing the desirable extent of the proposed improvement. The district may be defined by any convenient means, whether by a designation of the property to be assessed or by a boundary description. The survey and report of the city manager shall be made available for review no less than thirty days prior to the time of a public hearing on the necessity for the proposed improvement.
B. Before council shall take action on a council initiated improvement district, a public hearing shall be held at a time and place set by council, which public hearing may be continued from time to time as council may decide. After hearing the interested persons favoring or opposing the proposed improvement, council may decrease the extent or value of the improvement or may delete from the district properties not benefited in whole or in part by the improvement. No change may be made resulting in an improvement district containing petitioners owning properties bearing less than fifty percent of the estimated costs, unless other sufficient property owners are added to the petition.
C. Notice of the public hearing shall be published in a newspaper of general circulation in the city at least once a week for three consecutive weeks prior to the time fixed for the hearing. The city clerk shall send a written notice by first class mail at least thirty days prior to the time of hearing to each owner of property to be assessed. The notice to be published shall include a summary of the improvement, the designation of the properties to be assessed in the special improvement district, the purpose of the public hearing and the time and place fixed for the public hearing. The notice by mail shall include a summary of the improvement, the designation of the addressee’s property to be assessed, the purpose of the public hearing, the amount of the estimated assessment against the property and the time and place for the public hearing. Each notice shall generally inform the property owner of the manner and method of protesting or objecting to any action to be taken as a result of the public hearing. The plat, method of assessment and list of parcels with estimated costs shall be available for public inspection during normal working hours of each working day during the period of publication of notice of the proposed assessment.
D. If protests in writing as to the necessity of the local improvement are made by owners of property who will bear fifty percent or more of the estimated cost of the improvement are received prior to the commencement of the public hearing, council shall not proceed with the improvement until the protests have been reduced to less than fifty percent, except upon the approval of at least five members of the council.
E. After the public hearing is closed, council shall proceed to adopt a resolution determining to proceed or not to proceed with the proposed improvement. The council resolution to proceed shall find that the improvement is necessary and of benefit to the properties to be assessed and that the petition for the improvement has been signed by sufficient and proper petitioners. The findings of the council are conclusive. The resolution shall require an account to be kept of all the costs of the improvement and direct the proper city officials to prepare the assessment roll. The council, in its resolution, shall indicate the authorized percentage or rate of the cost of the improvement against the properties within the district. (Ord. 97-02 § 1 (part): prior code § 25-106)
3.16.090 Reserved.
(Ord. 97-02 § 1 (part): prior code § 25-107)
3.16.100 Petition initiated improvement districts—Authorized.
A. In addition to improvement districts initiated by council, improvement districts and assessments may be initiated by petition in a form prescribed by the city manager which shall include a description of the improvement sought by the petition. The original or copies of the petition shall be signed by the owners of more than fifty percent of the property benefited by the improvement sought by the petition. The petition, when signed, shall be filed with the city clerk. No property owner may withdraw his signature of approval after the petition has been filed with the city clerk unless authorized to do so by council.
B. Upon receipt by the city manager of the petition from the city clerk, the city manager shall cause a survey and report to council to be made concerning the needs for and the estimated cost of the district. The report shall contain a plan defining the district, outlining the properties to be assessed and showing the desirable extent of the proposed improvement. The district may be defined by any convenient means, whether by a designation of the property to be assessed or by a boundary description. The survey and report of the city manager shall be made available for review, no less than thirty days prior to the time of a public hearing on the necessity for the proposed improvement. (Ord. 97-02 § 1 (part): prior code § 25-108)
3.16.110 Petition initiated improvement districts—Public hearings and notice thereof.
A. Before council shall take action on a proposed petition initiated improvement district, a public hearing shall be held at a time and place set by council or the city manager, which public hearing may be continued from time to time as council may decide. After hearing the interested persons favoring or opposing the proposed improvement, council may decrease the extent or value of the improvement or may delete from the district properties not benefitted in whole or in part by the improvement. No change may be made resulting in an improvement district containing petitioners owning properties bearing less than fifty percent of the estimated costs to be borne by the benefited properties, unless other sufficient property owners are added to the petition.
B. Notice of the public hearing shall be published in a newspaper of general circulation in the city at least once a week for three consecutive weeks prior to the time fixed for the hearing. The city clerk shall send a written notice by first class mail at least thirty days prior to the time of hearing to each owner of property to be assessed. The notice to be published shall include a summary of the improvement, the designation of the properties to be assessed in the special improvement district, the purpose of the public hearing and the time and place fixed for the public hearing. The notice by mail shall include a summary of the improvement, the designation of the addressee’s property to be assessed, the purpose of the public hearing, the amount of the estimated assessment against the property and the time and place for the public hearing. Each notice shall generally inform the property owner of the manner and method of protesting or objecting to the action to be taken at the public hearing.
C. After the public hearing is closed, council shall proceed to adopt a resolution determining to proceed or not to proceed with the proposed improvement. The council resolution to proceed shall find that the improvement is necessary and of benefit to the properties to be assessed and that the petition for the improvement has been signed by sufficient and proper petitioners. The findings of the council are conclusive. The resolution shall require an account to be kept of all the costs of the improvement and direct the proper city officials to prepare the assessment roll. The council, in its resolution, shall indicate the authorized percentage or rate of the cost of the improvement against the properties within the district. (Ord. 97-02 § 1 (part): prior code § 25-109)
3.16.120 Reserved.
(Ord. 97-02 § 1 (part): prior code § 25-110)
3.16.130 Computation of assessments.
A. Except in cases otherwise specifically provided for, and unless otherwise provided in the resolution ordering such improvement, the improvement district shall include all of the property within the boundaries established by city council. All property included within such limits of the district shall be considered and held to be the property and to be all the property specially benefited by such public improvement and shall be the property to be assessed to pay the cost and expense thereof or such part thereof as may be chargeable, which cost and expense shall be assessed upon all such properties to be benefitted in accordance with the special benefits conferred on such property in the proportion determined by the assessments method adopted by the city council for the particular public improvement.
B. Property may be included in more than one assessment district; provided, it is benefited by the public improvements for which such districts are created.
C. Assessment for Street Improvements.
1. Unless otherwise provided in the resolution to proceed with the district, the area specially benefited by a street improvement shall include all the property abutting, adjacent, or proximate to the street to be improved.
2. Street improvements include any street, road, parkway, and alley, including intersections, curb and gutter, and sidewalk; and storm sewer may, at council option, be included as assessable street improvements by the resolution creating the assessment district.
3. Forty percent of the total assessable cost of a street improvement shall be allocated to the benefited properties in the district on the basis of frontage abutting the improvement. That portion of the assessment shall be calculated by dividing forty percent of the assessable costs by the total front feet of property in the district abutting the improvement. The resulting figure shall be the assessed rate per front foot that shall be applied to each property abutting the improvement.
4. Sixty percent of the total assessable costs of the street improvements shall be allocated to the benefited properties on the basis of square footage of assessable area. The assessable area of any property within the improvement district is the total area to a depth of two hundred fifty feet. The assessment rate per square foot shall be calculated by dividing sixty percent of the total assessable cost for the district by the total assessable area in the district. The resulting assessment rate per square foot shall be applied to the square feet of assessable area of each property in the district.
5. The calculation of assessable area for lots fronting on more than one street, one or more of which are not being improved under the improvement district for which the assessment is being levied, shall be in proportion to street frontage on the improvement. The proportion of the area to be assessed shall be to the total lot area as the portion of the street frontage abutting the improvement is to the total frontage of the property on all streets.
6. If a right-of-way is used as an alley for auxiliary access to the back of the property for garage purposes or garbage pickup but is not used as the main access, and the residence does not front on it, the alley shall not be considered as a street for purposes of calculating assessments based on front footage or for the purpose of calculating the assessable area for properties abutting more than one street.
D. Curb Cuts, Sewer and Water Service Extensions.
1. The cost of providing a curb cut shall be assessed against the individual property benefiting from that improvement. As used in this subsection, a “curb cut” is that portion of a street, alley, or sidewalk requiring special or different construction because of the presence of an abutting driveway upon the benefited property. The water and sewer service extensions shall be constructed in conjunction with the project.
2. A sanitary sewer or water service extension will be constructed in conjunction with the street improvements and will be assessed against the property as provided in this chapter.
3. Assessments for a curb cut, sewer and water service extension to the property line shall be in addition to other street assessments provided by this chapter.
4. Assessments for Sanitary Sewers. A special assessment district for the construction of sanitary sewer facilities shall include all properties to which lateral service will be made available from the facilities constructed. Lateral service shall be considered as being available to all properties abutting or adjacent to the facilities or to the right-of-way in which they are constructed if direct connection of a service line to the facilities is permitted.
5. All properties within the improvement district shall be assessed their proportionate share, on a square-foot basis of one hundred percent of the total cost of the facilities constructed. The assessable area shall include all property adjacent to the improvement within one hundred fifty feet of the sewer line or the dedicated public right-of-way in which the sewer line is located.
6. The rate per square foot for the assessment shall be determined by dividing the total assessable cost by the total assessable area. The resulting figure shall be multiplied by the square feet of assessable area for each property in the district to determine the assessment.
E. Water Utility Assessments. Each property within a water utility assessment district shall be assessed its proportionate share of one hundred percent of the cost of the water utility system actually installed. Properties that may be subdivided in the future pursuant to existing city code shall be assessed only to a depth of one hundred fifty feet. The rate of assessment per square foot shall be computed by dividing the total assessable cost by the total assessable area with the special assessment district. The resulting figure shall be multiplied by the square feet of assessable area within the property to determine the applicable assessment. Council shall also have power to enlarge or decrease the area of an improvement district and to change and revise the boundaries thereof from time to time.
F. Payment of assessments required before connection. When capital improvements have been constructed within a special assessment district in the city and assessments levied upon the property specially benefited by such improvements for all or any portion of the cost of those improvements, a permit shall not be issued by the city for any storm or sanitary sewer connection or water connection from the property so assessed unless the assessment has been paid, or, if the assessment is payable in installments, all payments due at the time of application for the permit have been paid.
G. Assessments payable by installments shall be paid as follows unless otherwise stated in the resolution established by council. Installment payments may be made in ten equal annual installments plus interest as established by council. The interest shall not begin to accrue until thirty days after the confirmation of the assessment. The due date of each annual installment, including accrued interest, will be July 1st each year. The delinquent date of each installment is August 1st of each year. A penalty of ten percent shall be added to any assessment installment not paid before the date of delinquency, and the assessment installment shall draw interest at the current interest rate used for property tax delinquencies until the delinquent installment is paid. (Ord. 97-02 § 1 (part): prior code § 25-111)
3.16.140 Levy of assessments—Notice of hearing on objections.
A. When it has been decided to make such public improvement and to levy such assessments, correct account shall be kept of all expense of such improvement and as soon as the latter shall be completed, the city council shall apportion such percentage of the cost as was previously determined and shall assess the same against the various tracts of real property in proportion to and consistent with the apportionment method set forth in the resolution authorizing the improvement.
B. Such apportionment of costs shall be designated the assessment roll and shall contain a brief description or designation of each tract or parcel of property, the name of the owner or reputed owner thereof and the amount of the assessment. When the same is completed, the council shall fix a time at which to hear objections to such assessment. The city clerk shall then send a written notice by mail to each owner of a tract against which an assessment is made, which notice shall state the amount of the assessment against any particular tract, and the time fixed by the council for hearing objections, as well as the terms of payment of the assessment. If no terms are indicated, the terms shall be understood to be the terms as provided in this chapter. Such notice shall be mailed at least fifteen days before the date of the hearing. (Ord. 97-02 § 1 (part): prior code § 25-112)
3.16.150 Hearing on objections—Signing of assessment roll.
At the time of such hearing, all persons concerned shall have a right to present their objections to the assessment or any part thereof and to point out errors and inequalities and submit such reasons for amendments and corrections as they may have and such hearings may be continued from time to time as council shall decide. Council shall have power to vary the assessments made according to the formula set forth for the particular improvement in individual cases where, because of peculiar circumstances, the property assessed is not benefitted commensurate with the amount of the assessment. After the council has heard all objections and suggestions, it shall correct all errors, if any, which it finds to exist in the assessment roll as originally made, and when the same is finally settled, the mayor shall sign the assessment roll. Council shall confirm the special assessment roll by resolution which shall provide for the levy and payment schedule of the assessments. Installment payments shall bear such interest as the council may prescribe in the resolution. No payment shall be required within thirty days after the confirmation of the assessment. If payment is made by lump sum within thirty days after the confirmation, no interest shall be charged to the property owner’s account. (Ord. 97-02 § 1 (part): prior code § 25-113)
3.16.160 Notice to owner of assessment.
Within ten days after final passage of the ordinance levying the assessment, the city clerk shall mail, postage prepaid, a notice to the owner of each property assessed which notice shall designate the property, the amount of the assessment, the time of delinquency and the amount of penalty, if any. Within five days after the notices have been mailed, the clerk shall file an affidavit setting forth such mailing, which affidavit shall be conclusive as to the facts therein set forth. (Ord. 97-02 § 1 (part): prior code § 25-114)
3.16.170 Assessments to be lien on property.
Such assessments shall be a lien upon the property assessed from the time the assessment is levied, which lien shall be paramount and superior to any other lien heretofore or hereafter created whether by mortgage or otherwise, except a lien for prior assessments and for general taxes, and shall be payable at such time and when delinquent, shall bear such interest and penalty as city council may prescribe and may be enforced in the same manner provided for the collection and enforcement of general taxes. Upon the transfer of ownership of a parcel for which there is a deferred assessment, an assessment payment for that parcel only shall be due immediately in the amount which would be due if no deferment had been granted. Interest not charged shall not be included. Transfer of ownership shall include any transfer of title or a lease for ten years or more, whether by law or otherwise, but shall not include a transfer between spouses. (Ord. 97-02 § 1 (part): prior code § 25-115)
3.16.180 Assessments to be binding.
The regularity or validity of assessments as provided herein may not in any manner be contested or questioned by any proceeding whatsoever by any person not filing objections to such assessment roll prior to the confirmation thereof. (Ord. 97-02 § 1 (part): prior code § 25-116)
3.16.190 Appeal.
The decision of council upon any objection may be reviewed by the state superior court in the manner prescribed by law provided such action is filed within sixty days after confirmation of the special assessment roll for the assessment. If no such action is commenced, the procedure shall be conclusively presumed to have been regular and complete. (Ord. 97-02 § 1 (part): prior code § 25-117)
3.16.200 Reassessment—To be made where original assessment invalidated.
Whenever an assessment provided for in this chapter is set aside, annulled or declared void, or its enforcement refused by a court of the state or the United States, whether directly or by virtue of a decision of a court the council may, by ordinance or resolution, make a new assessment or reassessment upon the lots, blocks or parcels of land benefited by the improvement not to exceed, however, two-thirds of the cost of the improvement. The reassessment shall be based on the special and peculiar benefit of the improvement to the respective parcels of land assessed at the time it was originally made. (Ord. 97-02 § 1 (part): prior code § 25-118)
3.16.210 Reassessment—Valid notwithstanding irregularities.
The proceedings required by law to be taken before the making of an original assessment are not required to be taken in connection with a reassessment under this chapter. The reassessment shall be made and become a charge upon the property notwithstanding the omission, failure or neglect of an officer, body or person to comply with the provisions of law relating to improvement and assessment, and whether or not the proceedings of the council or a person connected with the work may have been irregular or defective and whether or not an irregularity was jurisdictional. (Ord. 97-02 § 1 (part): prior code § 25-119)
3.16.220 Foreclosure of liens for unpaid assessments.
Liens for unpaid assessments shall be foreclosed and the property sold in the same manner as provided for foreclosure of property for taxes. (Ord. 97-02 § 1 (part): prior code § 25-120)