If an assessment district option is selected, each property owner pays a share of the cost of improvements over a period of years through their property tax bill. Assessment districts are property owner funded; homeowners and rental property owners directly benefit from the proposed maintenance or upgrade from the improvements. The costs per owner will depend upon the capital cost for the improvement, the size of the district, and in some cases, the size of a particular property. Since a number of affected neighborhoods would be included in an assessment district to handle the four most problematic Regulated Outputs (RO), fixed costs could be spread over more property owners which will result in lower costs per assessment.
An assessment district is typically financed with a bond. For example, if a 15-year bond is selected, the annual assessment per property owner could range between $75 to $150 per year depending on the size of the district, the size of the property, and the degree of City financial contribution. The assessment would sunset when the bond or debt is paid off.
Accrual & Final Costs
The City will hire a licensed engineer to determine the accrual and final costs as required by law to determine the exact cost of the assessment per property owner, if and when property owners elect to pursue assessment district financing.