what’s the assessment, doc? the straight scoop on special assessments for cities and special...
TRANSCRIPT
What’s the Assessment, Doc?What’s the Assessment, Doc?The straight scoop on The straight scoop on Special Special
AssessmentsAssessments for cities and for cities and special districtsspecial districts
The Doctor is inThe Doctor is in
Tim Schaefer, The Specialist Larry Tramutola, The Spin Doctor Warren Diven, The Juris Doctor Greg Ghironzi, The Witch Doctor Tim Seufert, The Family Doctor
The PatientsThe Patients
Cities Special Districts Counties Other
Overview of Special AssessmentsOverview of Special Assessments
AKA Benefit Assessment or Special Benefit Assessment
Can finance maintenance and services, infrastructure, or both
Flexible and versatile Currently popular for maintenance funding Assessment districts allowed by:
Numerous enabling State statutes Charter city ordinances
Assessment Laws for Assessment Laws for Providing MaintenanceProviding Maintenance
Improvement Act of 1911 Municipal Improvement Act of 1913 Municipal Lighting Maintenance
District Act of 1927 Street Lighting Act of 1931 Tree Planting Act of 1931 Vehicle Parking District Law of 1943 Parking District Law of 1951 Landscape and Lighting Act of 1972
Benefit Assessment Act of 1982 Parking and Business Improvement
Area Law of 1989 Property and Business Improvement District Law of 1994 Geologic Hazard Abatement District Habitat Maintenance Assessment
District Fire Suppression Assessments Open Space Maintenance Act
Flexibility and VersatilityFlexibility and Versatility
Flexible - characterized by a ready capability to adapt to new, different, or changing requirements
Example – 1972 Act L&L with 1915 Act bonds to finance open space purchase
Versatile - having many uses or applications
Example – 1982 Act Benefit Assessment for snow removal
Comparison to Special TaxesComparison to Special Taxes
Concept of special benefit Tax formula vs. benefit criteria Approval process Public parcels 2/3 vs. 50% hurdle
Capital Improvements Discussion Capital Improvements Discussion and Examplesand Examples
ActAct ImprovementsImprovements Method of AssessmentMethod of Assessment1913/1915 Street Net Acreage
SewerStorm Drains
Services Discussion and ExamplesServices Discussion and Examples
ActAct ImprovementsImprovements Method of AssessmentMethod of Assessment1972 Streetscape with Block Walls EDU/Zone
& Scopes Street Landscaping Open Space Transportation Corridor Maintenance Neighborhood Parks
Menu of Commonly Used Special Menu of Commonly Used Special AssessmentsAssessments
ActAct RefRef Primary UsePrimary Use Secondary UseSecondary Use
1913 SH 10000 Capital Impvts Maint
1972 SH 22500 Maint Capital Impvts
1982 GOV. 54703 Maint Capital Impvts
1994 SH 36600 Maint & Srvcs Capital Impvts
Proposition 218 Proposition 218 Establishing the Constitutional FrameworkEstablishing the Constitutional Framework
Proposition 218 – Two Minutes of BackgroundProposition 218 – Two Minutes of Background Knox v. City of Orland. The Howard Jarvis Taxpayers
Association catalyst. Plugging loopholes in Proposition 13 Approved by initiative November 1996 Added Article XIIIC and D to the California
Constitution
Article XIIID Article XIIID Constitutional FrameworkConstitutional Framework
Article XIIID applies to all "assessments" – Section 1
Article XIIID does not provide new authority to levy assessments – Section 1
No "assessment" shall be assessed upon any parcel of real property except assessments as provided by Article XIIID – Section 3
Article XIIIA Article XIIIA Constitutional FrameworkConstitutional Framework
DefinitionsDefinitions
"Assessment" – any levy or charge upon real property by an agency for a special benefit conferred upon real property.
"Agency" – any county, city, city and county, including a charter city or county, any special district, or any other local or regional governmental entity
"District" – an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property-related service
"Special Benefit" – a particular and distinct benefit over and above general benefits conferred on real property located in the district or the public at large. General enhancement of property value does not constitute "special benefit"
Article XIIID Article XIIID Constitutional FrameworkConstitutional Framework
The Substantive Requirements The Substantive Requirements
Proportionate special benefit shall be determined in relationship to entirety of: capital cost of public improvement, the maintenance and operation expenses of public improvement; or the cost of the property-related service.
Assessment on a parcel may not exceed the reasonable cost of the proportional special benefit conferred on such parcel
Only special benefits are assessable Publicly owned parcels shall not be exempt from assessment
absent clear and convincing evidence that such parcels receive no special benefit
Article XIIIC Article XIIIC Constitutional FrameworkConstitutional Framework
Procedural requirements – Identification of ParcelsProcedural requirements – Identification of Parcels
The agency must identify all parcels which will have a special benefit
All assessments must be supported by a detailed engineer's report prepared by a registered professional engineer certified by State of California
Article XIIICArticle XIIICConstitutional FrameworkConstitutional Framework
Procedural Requirements – Notice of Proposed AssessmentProcedural Requirements – Notice of Proposed Assessment
Written notice must be mailed to record owner at least 45 days prior to public hearing
Must contain: Total amount chargeable to entire district; Amount chargeable to owner's particular parcel; Duration of the payments; Reason for the assessment; Basis upon which the amount of the assessment was
calculated; Date, time and place of public hearing; Summary of assessment ballot procedures
Article XIIICArticle XIIICConstitutional FrameworkConstitutional Framework
Procedural Requirements - Public Hearing and Procedural Requirements - Public Hearing and Assessment Ballot ProceedingAssessment Ballot Proceeding
Legislative body must conduct public hearing and consider all protests
Assessment ballot – enables owner to express support for or opposition to assessment
Majority protest – Agency may not impose an assessment if there is a majority protest ballots submitted in opposition to assessment exceed
ballots submitted in support ballots are weighted – based upon proportional
financial obligation, i.e., amount of assessment
Proposition 218Proposition 218Omnibus Implementation ActOmnibus Implementation Act
Government Code Section 53750 and following – Government Code Section 53750 and following – HighlightsHighlights
Provisions supercede notice, protest and hearing requirements of enabling legislation
Provides detailed implementation rules for Article XIIIC procedures
Ballots must remain sealed until close of public hearing Ballots must be tabulated by impartial person (may be
City Clerk)
The PR PerspectiveThe PR PerspectiveThe Discipline of Winning
THE PLANTHE PLANWhat you plan to What you plan to
do with the money?do with the money?• Be specificBe specific• Detailed program Detailed program explanationexplanation
WHO VOTESWHO VOTES•Voter DataVoter Data•Demographic analysisDemographic analysis•PollingPolling•Electoral scenariosElectoral scenarios
RESOURCESRESOURCES• TimeTime• MoneyMoney• VolunteersVolunteers
Positioning Positioning Your MeasureYour Measure
To WinTo Win
10 Steps for Successful Special 10 Steps for Successful Special Assessment ElectionsAssessment Elections
Be courageous Determine what the public will support Make tough decisions Make priorities Keep your message simple Understand who votes Determine when you want to be on the ballot Build an army of volunteers Get the resources you need If you don’t succeed, don’t be afraid to try again
Common Mistakes that will Derail a Common Mistakes that will Derail a Special Assessment ElectionSpecial Assessment Election
Lack of strong, committed leadership “Let’s do it ourselves” “Give us the money first, then we’ll develop the plan” Inability to eliminate projects or programs that are not
absolutely necessary Not taking time to plan well or build support Not raising sufficient resources Insufficient volunteer commitment Campaigning on behalf of the public agency instead of
the projects the tax will benefit Focusing on the money not the need Not staying on “message”
Case Study – City of Sand PointeCase Study – City of Sand Pointe
Agency - City of Sand Pointe Attributes and constraints Options Prescriptions and recommendations
Case Study – City of Sand PointeCase Study – City of Sand Pointe
New “Joe’s Club” super store coming to town Bridge over highway is no longer adequate City gives Joe’s entitlement to build but requires
Joe’s to construct the bridge Joe’s says it will build bridge if City gives them a
“Sales Tax deal” Question: What are the City’s options
Case Study – City of Sand PointeCase Study – City of Sand Pointe
Answer:
Look at the assessment approach!
PrescriptionsPrescriptionsQ & AQ & A