What’s the Assessment, Doc?

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

2. The 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

3. The Patients • Cities • Special Districts • Counties • Other

4. Overview 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

5. Assessment Laws for Providing 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

6. Flexibility 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

7. Comparison to Special Taxes • Concept of special benefit • Tax formula vs. benefit criteria • Approval process • Public parcels • 2/3 vs. 50% hurdle

8. Capital Improvements Discussion and Examples ActImprovementsMethod of Assessment 1913/1915 Street Net Acreage Sewer Storm Drains

9. Services Discussion and Examples ActImprovementsMethod of Assessment 1972 Streetscape with Block Walls EDU/Zone & Scopes Street Landscaping Open Space Transportation Corridor Maintenance Neighborhood Parks

10. Menu of Commonly Used Special Assessments ActRefPrimary 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

11. Proposition 218 Establishing the Constitutional Framework Proposition 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

12. Article XIIID Constitutional 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

13. Article XIIIA Constitutional Framework Definitions • "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"

14. Article XIIID Constitutional Framework 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

15. Article XIIIC Constitutional Framework Procedural 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

16. Article XIIICConstitutional Framework Procedural 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

17. Article XIIICConstitutional Framework Procedural Requirements - Public Hearing and Assessment 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

18. Proposition 218Omnibus Implementation Act Government Code Section 53750 and following – Highlights • 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)

19. TheDiscipline of Winning • THE PLAN • What you plan to • do with the money? • Be specific • Detailed program • explanation Positioning Your Measure To Win • WHO VOTES • Voter Data • Demographic analysis • Polling • Electoral scenarios • RESOURCES • Time • Money • Volunteers The PR Perspective

20. 10 Steps for Successful Special Assessment 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

21. Common Mistakes that will Derail a Special 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”

22. Case Study – City of Sand Pointe • Agency - City of Sand Pointe • Attributes and constraints • Options • Prescriptions and recommendations

23. Case 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

24. Case Study – City of Sand Pointe • Answer: Look at the assessment approach!

25. PrescriptionsQ & A