Because the City's general fund is not designed to subsidize the costs of special improvements, it is necessary that those receiving the benefit of the improvements bear the costs. The factors involved with costs and assessments to property owners include:
Advertising and Notices
The district's overhead costs may be as much as 35-40% of the actual improvements construction costs.
Assessment Spreads Assessments are spread upon the affected properties as provided by State Law. The SID does have some flexibility in determining the method of assessment, so it is beneficial to property owners to be involved with the neighborhood committee and meetings before the SID is created.
Once bids are awarded, notices are mailed to property owners providing the option of paying the entire amount within 30 days from the date of the notice. If the SID is not paid on the due date, it is automatically placed on individual property tax rolls. The property owner will then pay off the SID over a period of years, generally 12 to 15 years. Interest is determined by the bond sale and is charged against the unpaid principal.
Final Cost After construction is complete, the final costs are tabulated. If they are lower than originally assessed, the City will adopt a resolution amending the cost and lower the costs of the properties. Any property that paid early will receive a refund and others will have future assessments lowered.