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What’s the Assessment, What’s the Assessment, Doc? Doc? The straight scoop on The straight scoop on Special Assessments Special Assessments for for cities and cities and special districts special districts

What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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Page 1: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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

Page 2: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special 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

Page 3: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

The PatientsThe Patients

Cities Special Districts Counties Other

Page 4: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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

Page 5: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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

Page 6: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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

Page 7: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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

Page 8: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

Capital Improvements Discussion Capital Improvements Discussion and Examplesand Examples

ActAct ImprovementsImprovements Method of AssessmentMethod of Assessment1913/1915 Street Net Acreage

SewerStorm Drains

Page 9: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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

Page 10: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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

Page 11: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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

Page 12: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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

Page 13: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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"

Page 14: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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

Page 15: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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

Page 16: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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

Page 17: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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

Page 18: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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)

Page 19: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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

Page 20: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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

Page 21: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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”

Page 22: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

Case Study – City of Sand PointeCase Study – City of Sand Pointe

Agency - City of Sand Pointe Attributes and constraints Options Prescriptions and recommendations

Page 23: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

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

Page 24: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

Case Study – City of Sand PointeCase Study – City of Sand Pointe

Answer:

Look at the assessment approach!

Page 25: What’s the Assessment, Doc? The straight scoop on Special Assessments for cities and special districts

PrescriptionsPrescriptionsQ & AQ & A