Special assessments for curb cuts or water & sewer connections are typically a one-time payment.
Operating expenses (and capital expenses also) for business improvement districts (BIDs) might be paid for through a special assessment. However, BIDs are typically created by property owners pursuant to a process established by a local government.
Special Assessment revenue can be used as a local match for state or federal funding.
Assessments for long-lived assets, such as street or water main extensions, may be calculated to provide steady funding for many years. Revenues can fund construction as funds become available.
CAPITAL PROJECTS & FINANCING
Assessments for long-lived assets, such as street or water main extensions, may be calculated to provide steady funding over the life of the asset.
Because special assessment revenue tends to be certain and secure over a long period of time, investors are willing to make loans (or buy bonds) to provide up-front cash for infrastructure projects that will be paid back by special assessment revenues over the life of the special assessment.
Special Assessments can also serve as backstops for less certain revenue, such as Tax Increment Financing.
