Feedback Forms Questions #3

Please find additional clarifications based on the feedback forms returned to date. Thanks

How would the City phase in the new policy?

The cost of subcuts would be removed from special assessments in the first year. After the first year, assessments would be reduced by a certain percentage each year. In the case of Option 1 (half taxes, half assessments), assessments would be reduced each year until it reached half the cost of a project at Year 16. In the case of Option 2 (all taxes), assessments would be reduced each year until it reached no assessment at Year 16.

Under the current policy, residents may pay their special assessments up front or over the course of 15 years. What percentage of residents pay up front?
Approximately one-third of special assessments are paid off immediately and do not show up on tax statements. Another one-third of property owners pay off their special assessment early during the 15-year re-payment period. The remaining one-third pay it off over the entire re-payment period.

Approximately what percentage of single-family homes have paid for a street reconstruction project under the current Special Assessment Policy?
The City has reconstructed approximately half of the local streets. Therefore, approximately half of the properties have paid an assessment. Approximately 4% of properties change owners per year. If they moved into a neighborhood after street construction, some property owners within a recently constructed street may not have paid for an assessment. We anticipate it will take approximately 20-25 years to complete reconstruction of the remaining local streets.

Did the Task Force consider removing the subcut cost from the assessment, but otherwise leave the Special Assessment Policy as is?
The task force reviewed how this would impact assessments and the ability of the City to continue to assess properties for public improvements. The Task Force felt just removing subcut was not enough and that it would still be difficult to prove the market benefit required by State Statute.