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Introduction to Special Assessments

February 2021
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4. Calculating the Fee

Calculating Special Assessments

This infographic shows the text 'Project Site' surrounded by larger circles, to convey properties further away from the project.
  1. Identifying Properties
  2. Cost Basis or Benefit Basis?
  3. Calculate the Assessment
1. Identifying the properties receiving a special benefit?

 

This infographic shows the text 'Project Site' surrounded by larger circles, to convey properties further away from the project. The project site is the location of new improved public facilities or services. Surrounding properties from the infrastructure project benefit, though some immediately nearby might not benefit, despite proximity. Typically, the intensity of the benefit diminishes with distance from the project.
2. Cost Basis or Benefit Basis

A. Fixed cost for standard activity?

  • Water & sewer hookups
  • Curb Cuts

B. Variable cost for standard activity?

  • Street Lights
  • Water & sewer extensions,
  • Sidewalk creation
  • New street construction:

C. Variable Benefit?

  • Assessment by property or by zone

A. Fixed cost for standard activity

  • Water & sewer hookups
  • Curb Cuts
    Establish a Fee Schedule:
    • Water connection & valve: . . . . . . $XYY
    • Sewer connection . . . . . . . . . . . . $ZYX
    • Curb Cut:
      • Permit Review & Approval . . $ KJ
      • Impact mitigation (zone A) . . $BCD
      • mpact mitigation (zone B) . . $EAA

B. Variable cost for standard activity

  • Street Lights
  • Water & sewer extensions
  • Sidewalk creation
  • New street construction
    Establish a Cost Reimbursement Formula:
    • (Cost / Distance) x front footage(e.g., $51.20/linear foot for a 4’ wide sidewalk)
    • Total Costs / # of properties served
      or
    • Other Formula Related to the Costs Incurred orBenefits Received

C. Variable Benefit

  • Assessment by property or by district

Percentage rate applied to land value

  • Uniform rate throughout district (e.g., $0.05/$100 assessed land value)
  • Graduated or zone rates within district
    • $0.05/$100 assessed land value within 1,000 feet of project
    • $0.02/$100 assessed land value within 1,001 ft & 1,500 ft of project

Or

  • Other formula related to costs incurred or benefits received
3. CALCULATE THE ASSESSMENT

A. Fixed cost (fee schedule) for standard activity?

  • Fee collected for permit approval

B. Variable cost for standard activity?

  • Fee is a surcharge collected with the standard property tax

C. Variable Benefit Based Upon:

  • Fee is a surcharge collected with the standard property tax

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