HomeMy WebLinkAboutAgenda - 04-12-2007-4ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 12, 2007
Action Agen~
Item No.
SUBJECT: Establishing an Assessment for County Water and Sewer Projects: Decision
Points and Policy Options
DEPARTMENT: County Manager PUBLIC HEARING.: (Y/N) N ~~
ATTACHMENT(S):
1. White Paper: Water/Sewer
Assessment Policy (Decision INFORMATION CONTACT:
Points) Kevin Lindley, Engineering Specialist
2. White Paper: Water/Sewer 245-2313
Assessment Relief Assistance Tara Fikes, Housing and Community
Program (Policy Options) Director, 245 - 2492
3. Sample Utility Extension Policies Paul Thames, Engineer, 245- 2303
4. Fact Sheet on Assessment Projects Gwen Harvey, Asst County Manager,
5. Summary of Steps in an 245-2307
Assessment Process
6. Sample Timeline for an
Assessment Process
PURPOSE: To provide the BOCC an outline of decision points and policy options allowable
under State law for establishing utility assessments, including an assessment relief assistance
program for low-wealth households.
BACKGROUND: The BOCC has through the years discussed tools and techniques for
recovering all or some portion of County funds expended in utility extension projects. One tool
defined under NC General Statutes and commonly exercised by governing bodies is the utility
assessment process, which involves calculating the pro rata share of project costs for each
property benefiting from a utility project.
Staff provided the BOCC with a background report on the utility assessment process at its work
session on August 28, 2006. At that time, the BOCC expressed an interest in evaluating the
particulars in terms of potential impacts to owners of property within a probable assessment
area, such as the Buckhorn EDD/Gravelly Hill Middle School water and sewer utility extension
project. The BOCC also expressed an interest in evaluating strategies for lessening the
financial impact of an assessment on affected low-wealth households.
While State statutes are highly prescriptive of many elements of the assessment process -
maximumten year payback period and exclusion of publicly owned properties, for example -
there are several critical decision points that offer flexibility and represent major policy choice
for the local governing board. Therefore, staff finds it appropriate and advisable for the
BOCC to take the opportunity to carefully examine and evaluate its policy choices.
Systematic analysis should enable the BOCC to better distinguish and determine the
underlying assumptions upon which it will want to establish any water and sewer
assessment project.
The policy decisions/outcomes that emerge from BOCC examination/evaluation will be
incorporated by staff into a basic utility assessment policy and brought back for review and
any refinement by the BOCC prior to adoption. A final policy could then be adopted by the
BOCC and implemented in accordance with future needs.
A basic utility assessment policy as described here, if adopted by the BOCC, establishes
only the framework for how assessment projects will be addressed; the policy in and of
itself does not initiate any particular assessment project. It would still be a BOCC decision
as to whether or not it would want to invoke and implement its utility assessment policy. Under
State law, the BOCC initiates a particular assessment project by adopting a prescribed
"Preliminary Assessment Resolution" which outlines the intent, description, and other
mechanics for a specified geographic area.
Byway of administration, after adoption of a utility assessment policy, should the BOCC elect to
establish a particular assessment project, staff anticipates that payment of the actual
property/homeowner assessment be handled as part of the annual property tax bill with
revenues collected through the office of the Tax Collector.
To help facilitate the BOCC in its policy level discussion, staff has prepared two "white
papers" and assembled supporting background materials. .
Attachment 1 is a "white paper" titled "Water/Sewer Assessment Policy Decision Points" that
walks the BOCC through the various policy choices allowable under State statutes.
The companion to an adopted "Water/Sewer Assessment Policy" would be an adopted
"Water/Sewer Assessment Project Relief Assistance Policy". This proposed BOCC policy
would set forth the protocol and procedures for granting financial relief to low-wealth property
owners/households impacted by an assessment project.
Attachment 2 is a "white paper" titled "Water/Sewer Assessment Project Relief Assistance" that
outlines .different options for the BOCC to consider again as "corollary" to the principal policy
governing utility assessments.
Attachment 3 provides sample copies of utility extension/assessment policies/procedures from
the Town of Chapel Hill, Orange Water and Sewer Authority (OWASA), and the City of Durham,
as information only.
Attachments 4, 5, and 6 provide general information on the formal utility assessment process
in accordance to State Statutes - a fact sheet, a synopsis of each step, and a timeline. These
materials were previously shared with the BOCC at its work session in August and included
here for ease of review and reference.
FINANCIAL IMPACT: There is no out=of-pocket fiscal impact in evaluating various policy
options for use in County water and sewer assessment projects. Creating an assessment
project has a positive financial benefit to the County to the extent that infrastructure costs are
recovered. Assessment projects do, however, represent a direct cost to the benefiting property
owners who are then responsible for their repayment. An assessment relief assistance
program not implemented as part of an affordable housing project with affordable housing bond
funds would need to be funded and supported through the general fund.
RECOMMENDATION(S): The Manager recommends that the Board:
1. Receive and review the "white papers" and background materials attached
2. Provide feedback and direction to staff on the policy "decision points" and "options"
described therein such that actual policies to govern Water/Sewer Assessments and
Water/Sewer Assessment Relief Assistance can be drafted and brought back for BOCC
action
Attachment 1 4
WATER/SEWER ASSESSMENT POLICY IDECISION POINTS
Introduction
The Board of County Commissioners (BOCC) has expressed its interest and
intent to consider a policy of assessment for County funded utility extension projects. To
that end, Staff has outlined a series of policy decision points for BOCC review and
reference. Much of the assessment process and administrative procedures are outlined by
North Carolina General Statutes (NCGS). However, there are options available to the
BOCC that allow for customization of the assessment process. These are as follows.
Decision # 1• Percentage of the total proiect cost to be recovered through assessment
Decision Summary
The BOCC may elect to assess for any percentage of the total project cost, up to
100%. This total project cost can include not only the cost to construct the system, but
may also include costs for engineering and design, construction supervision, legal fees,
costs for obtaining easements, interest on construction loans, etc. An assessment policy
would state the percentage of the total costs to be assessed for each project and what
types of costs make up that total. As an example, the OWASA assessment policy
approved by their board does not assess for engineering and design fees up to 15% of the
total project cost or legal fees up to 5% of the total project cost.
The BOCC may also want to consider establishing other offsets to total cost in
the County's policy. The most prominent example would be to subtract from the total
cost of the project the value of any grant money received for the project. In the case of
discounting assessments based on grant money received, it will be important to note
whether the terms and conditions of the grant specifically indicate or limit who is
supposed to benefit from the grant money and/or how to treat the grant money with
regards to assessments.
Decision # 2: 8asis(es) for the assessment
Decision Summary
A County policy on utility assessment should outline how the total costs will be
apportioned to the beneficiaries of the new utility. The NCGS spells out several bases
available for the County to use, as follows:
Street frontage of the parcels to be served
Utility frontage of the parcels to be served
Area of the parcels to be served
5
Valuation of the land, without improvements, as shown on the County's tax
records
• On a per lot basis, at an equal rate per lot
• A combination of two or more of these bases
No other bases for assessment maybe used. As stated above, the BOCC may elect to use
any one of these or any combination of these, but the same basis for assessment must be
used for each lot served. For example, it would not be allowed to assess one lot on the
basis of area and another lot on the basis of street frontage. The only exemption
circumstance allowed by NCGS is that of a corner lot. When assessing on the basis of
street frontage, a corner lot does not have to be assessed for its entire frontage. However,
no more than 75% of the frontage of any side, or 150 feet (whichever is greater) maybe
exempted from assessment.
The general method for using any of these bases would be to add the total number
of units together (e.g. feet of frontage, acreage, dollars of land value, or number of lots),
then divide the total cost to be assessed by the number of basis units, to give the cost per
basis unit. Then, the basis unit cost would be multiplied by the number of basis units
associated with each lot to give the amount of the assessment per lot. The following
figure and tables illustrate a simple assessment example, followed by descriptions of
the bases for the assessment calculation. This is a theoretical example for
illustration purposes only, and should not be interpreted as representing with any
specificity unincorporated Orange County.
Example Street l~Tew Severer Line
Figure 1. Map afTheoreticalUtilit~Assessment.Area
Tahlp 1 _ ~am»le Parcel Data
Name Street Frontage Utility Frontage Area Tax Valuation
Parcel A 100 feet 100 feet 0.42 acres $250,000
Parcel B 85 feet 85 feet 0.49 acres $135,000
6
Table 2_ ~amnle Parcel Assessment Values*
Name Frontage Area Valuation Per Lot
Parcel A $15,000 $15,000 $18,750 $15,000
Parcel B $12,750 $15,978 $10,125 $15,000
* Based on a total assessed project cost of $300,000.
Frontage assessment: The new sewer line installed along Example Street (Figure 1) is
1000 feet long. Assuming that the new sewer line could serve lots on both sides of the
street, the total frontage will be 2000 feet. (In this example, since the sewer is installed in
the right-of--way of the street, the street frontage of the parcels and the utility frontage of
the parcels are the same thing. Utility lines do not always follow the roadways, though,
in which case the street frontage of a parcel and the utility frontage of a parcel could be
different.) The total project cost was $300,000: If the County were to assess for 100% of
the total project costs, then the total cost, $300,000, would be divided by the total
frontage, 2000 feet, giving an assessment per foot of frontage of $150. Parcel A has 100
feet of frontage, while Parcel B has a frontage of 85 feet (Table 1). The assessment for
Parcel A would be $15,000 ($150/ft * 100 ft.) and the assessment for~Parcel B would be
$12,750 ($150/ft * 85 ft.) (Table 2).
Area assessment: For the same project, the total area of the parcels to be served is 9.2
acres. The project cost of $300,000 divided by the total acres of 9.2 gives $32,608 per
acre. Parcel A has an area of 0.46 acres and Parcel B has an area of 0.49 acres (Table 1).
The assessment for Parcel A would be $15,000 ($32,608/acre * 0.46 acres) and the
assessment for Parcel B would be $15,978 ($32,608/acre * 0.49 acres) (Table 2).
Valuation assessment: The total value of all the parcels served by the new sewer line on
Example Street is $4,000,000, based on County Tax records. The project cost of
$300,000 divided by the tax valuation of $4,000,000 gives an assessment amount of
$0.075 per dollar of valuation. Parcel A is valued at $250,000, while Parcel B is valued
at $135,000 (Table 1). The assessment amount for Parcel A would be $18,750
($0.075/dollar * $250,000) and the. assessment amount for Parcel B would be $10,125
($0.075/dollar * $135,000) (Table 2).
Per Lot assessment: There are 20 lots being served on this project. The project cost
divided by the number of lots would give an assessment amount of $15,000 per lot. The
assessment amount for both Parcel A and Parcel B would be $15,000 (Table 2).
Decision # 3• County established policy for payment of the assessed amount
Decision Sturunarv
NCGS allows that any assessment fees may be paid in full, with no interest, as long as the
payment is made within thirty days of the assessment schedule's confirmation and
publication by the County Tax Assessor. The County may choose to allow annual
payments for any amounts not paid within thirty days. If amzualized payments are
allowed, the following are the components that would need to be included in a payment
policy.
• Interest amount
• Due date
• Length of time to pay
• Abeyance
Interest amount: The County is allowed to accept payments on portions of the
assessment not paid within thirty days of publication of the assessment schedule by the
County Tax Assessor, but interest must be charged on a per annum basis. The maximum
interest rate is 8%, according to NCGS, but no minimum rate is given.
Due Date: The County may make the due date for the annual payments either the same
day as real estate property taxes are due, or 60 days from notification that the assessment
schedule has been published. Once a due date for the annual assessment payments has
been established, the payments will be due on the same date every year for as many years
as the payment policy allows.
Length of time to pay: The County may allow the assessment payments to be spread
out into equal annual payments, plus interest as described above, for up to 10 years.
NCGS does not allow for payments to be extended beyond 10 years.
Abeyance: The County may choose to hold assessment payments in abeyance, with no
interest, for up to 10 years. The date on which the abeyance ends may be a date certain,
or may be the date that improvements on the property are connected to the water or sewer
system for which the assessment was made, whichever comes first. Once the period of
abeyance ends, the assessment must be paid in accordance with the terms set out in the
assessment resolution.
Conclusion
Any policy created by the BOCC would need to address these three major decision
points. Though the NCGS lays out a very rigid framework for the special assessment
process, these decision points will allow the BOCC to tailor the assessment policy to
better meet local needs.
Attachment 2
WATER/SEWER ASSESSMENT RELIEF ASSISTANCE PROGF:AM
DR.A.FT POLICY OPTIONS
Introduction
The Board of County Commissioners has expressed its interest and intent to consider
means allowable under State statutes to provide financial assistance to low-wealth
residents/property owners who could be adversely impacted by any public utility
assessment process the Board may have need or desire to establish.
Staff has outlined a series of policy options below for Board review and reference.
Option # 1: County defers the assessment payment
Process Description:
The BOCC elects to defer the date when an assessment begins to be collected. Unlike the
regular assessment system where 10 percent of the total assessment plus interest on the
unpaid balance is collected annually over a 10 year period, the BOCC can choose to
delay the onset of collection until the end of the fifth year, for example.
Advantages
- Liens against all subject properties are recorded as security for the full amount of
the assessment.
- Provides the low-income resident/property owner the opportunity to use the first
five years to sell the subject property and pay the full assessment out of the
proceeds of the sale.
- Simple and straightforward; easy to administer.
Disadvantages:
- Relief assistance is not targeted. Under law, the deferred assessment option would
be available to all residents/property owners within the assessment area, not just
those meeting low income criteria.
- By deferring assessment collections the County forgoes present day opportunity
to accrue funds to help initiate additional public sewer extension projects. The
ability to partner in or direct future projects with assessment revenues is delayed.
9
- By deferring assessment collections the County presents the low-income
resident/property owner with a "balloon payment" due and payable in full at
closing, dramatically reducing any realized profit to provide suitable replacement
housing, income security, reinvestment opportunity, etc.
- The deferred assessment is dependent upon the vagaries and unpredictability of
the real estate market -and maybe detrimental to low-income residents/property
owners more likely to be inexperienced and unskilled at property negotiations.
- The County should be mindful'that aresident/property owner could also use the
deferment period to attempt to subdivide or redevelop the subject property. If
successful, the resident/property owner would need to be liable for the full cost of
all availability fees in accordance with rates and fees established as applicable by
either the Town of Hillsborough or the City of Mebane, in addition to the
assessment.
Option # 2: County pays the assessment cost for each qualifying low-income
resident/property owner (Rogers Road Waterline Connection
Program Model)
Process Description:
This option is generally based on the BOCC approved process for the Rogers Road
Waterline Connection Program. Residents/property owners would make application to
the Housing and Community Development Department, and using HUD and any
additional County eligibility criteria a determination would be made on eligibility to
receive the Public Utility Relief Assistance. See chart below for 2007 Household Income
Limits applicable to Orange County:
HUD HOUSEHOLD INCOME LIMITS
FY 2007 Median Income - 60,100
1-Person 2-Person 3-Person 4-Person S-Person
Very Low 24,950 28,500 32,100 3S,6S0 38,500
Income
50%
Median
Low- 39,950 4S,6S0 S1,3S0 S7,OS0 61,600
Income
80%
Median
10
Property owner assistance would be provided in the form of a direct grant
payment/transfer to the assessment fund based on the following determination:
• For applicants with household income up to 80 percent of HUD published median
income limits, the County would pay 100 per cent of the assessment
• For applicants with household income 80 to 100 per cent of HTJD published
median income limits, the County would pay 50 percent of the assessment
Terms of Assistance borrowed from the Rogers Road Waterline Connection Project
include:
• Applicants must execute a grant agreement with documented proof of property
ownership and family income
• Applicant household income could be up to 80 per cent of I~[ITD published median
income limits
• Applicants can not have any preexisting overdue County loans or loans in default
to the County
• Applicants must not be outstanding in their County property taxes
• Applicant/landlords must sign an agreement restricting rental rate increases
• Confidentiality, Conflict of Interest, and Non-Discrimination
statements/provisions are applied
Advantages•
- The County has prior experience in the promotion and implementation of this type
assistance program.
- HUD income guidelines are a nationally recognized and generally acceptable
index for determining eligibility based on need.
- Simplified accounting with the direct and immediate elimination of the particular
assessment/liability.
Disadvanta~es•
- This policy - as with the Rogers Road Waterline Connection Program -would
place additional responsibilities upon County staff (Housing and Community
Development and Engineering) to conduct outreach and educational sessions and
handle the administrative tasks for program accuracy and accountability.
- Local general funds are the only known public finances available to cover relief
assistance grants.
11
Option # 3: County establishes a percentage of the entire utility extension
project cost plus a cap per lot that it will pay to reduce the final
assessment amount for each impacted resident/property owner
Process Description:
This option is modeled on the policy adopted by the Town of Chapel Hill in September
1988 for sewer extensions for existing neighborhoods within the Town limits. The
Town's assistance level is 20% with a cap of $4,500 per lot. OWASA does not assess for
costs covered by the Town.
After a project is complete, the OWASA Board of Directors would determine the amount
of assessments and the list of properties that are assessed. Pre lot assessments are
calculated as actual costs of the completed project, less the OWASA and Town support
as noted, divided by the number of benefiting lots. (Note: Under OWASA Board
adopted policies, OWASA does not assess for engineering expenses up to 15 per cent of
project costs or for legal expenses up to 5 per cent of project cost.)
Based on this model, the BOCC would exclude ("forgive") a certain percentage of the
entire assessment project cost, thereby decreasing the assessment charge for every
resident/property owner regardless of economic status. In addition, the BOCC would
provide ("absorb") a fixed cap per lot to further buy-down the individual assessment.
Advanta~es•
- Flexible since the BOCC decides on the overall project "discount" and per
property "cap" that deternne the subsidy
- Easy to articulate and defend within mixed income populations
- Relief not reliant upon personal economic variables or the need to self-identify
- Builds on notions of community "participation" and "partnership"
Disadvanta~es•
- Reduces the amount of revenue returned for reinvestment
- Income-neutral way to provide assessment relief
12
Connection Costs -Also Covered by the Assistance Program:
Connection costs to public water/sewer services are an additional expense associated with
an assessment function. In order to be served, the property owner/household must decide
to connect to the service. Connection costs typically include service laterals from the
home to the water/sewer, and if needed, changes to plumbing under the house to connect
to the service lateral, and taking an old.septic system out of service. Actual connection
costs would depend upon the scope or work and authorized contractor. The property
owner/household would decide when to connect to the service, assuming the septic
system in place meets health code requirements to remain in use. The BOCC - as in the
case with OWASA -has no current requirement to connect to public sewer if a septic
system is performing properly.
Staff recommends that any option the BOCC chooses for an assessment relief assistance
program for income eligible property owners/households also include grant assistance for
actual costs of connection. The connection assistance program would again be modeled
after Option 2 (and the Rogers Road Waterline Connection Project), in that applicants
with income less than 80 percent of the median would have all connection costs paid by
the County; applicants with income above 80 to 100 percent of the median would have
half the connection costs paid by the County.
Conclusion:
These three policy options have been developed to inform and engage BOCC thought and
deliberation. It should not be seen as an exhaustive list of potential options or possible
permutations.
Staff looks forward to BOCC review and discussion, followed by specific feedback and
guidance on next steps, in a focused work session setting.
Attachment 3 13
Durham Infrastruchire Assessment Policy
~_--
ARTICLE 7. SPECIAL ASSESSMENTS FOR IMPROVEMENTS
Sec. 77. Assessments for water, sewer, street, sidewalks, grass plot,
lighting and waterfront improvements.
(1) It is the purpose of this section to provide a method whereby one or more
local improvements of the kind specified in subsection (4) of this section and the
assessments therefor may be made on or in one or more streets in a single
proceeding by the city.
(2) This section is intended to prescribe the complete procedure for the making
of those local improvements referred to in subsection (4) and for assessing and .
collecting such portion of the cost thereof as is hereinafter provided; but the
method hereby provided is not intended to be exclusive, and -the city may
proceed with respect to such local improvements either as prescribed by this
section or as is now or may hereafter be prescribed by the special or general law.
(3) In this section certain words and phrases will be used with the following
meaning, unless some other meaning is plainly intended:
(a) Alocal improvement is an improvement defined by this section and
made under the provisions hereof.
(b) Astreet is a public way embracing a street, boulevard, avenue, lane,
alley, parkway, court and terrace, but not embracing sidewalks.
(c) Asidewalk is a path for pedestrians along a street.
(d) Astorm sewer is a conduit above or below ground for the passage of
storm water, and may embrace a pumping station and outlet where
deemed necessary; and may also embrace the building or culverts over
or the enclosing of streams where necessary or advisable to carry off
storm water.
(e) Asanitary sewer is a conduit for the passage of sewage, and may
embrace a pumping station and outlet where deemed necessary.
(f) Awater main is a pipe for the passage of city water for public
hydrants and private and public use and consumption.
(g) Alateral is a pipe connecting a storm or sanitary sewer or water main
with the line of adjacent property or the curb line, as the city council may
prescribe, being either a sewer lateral or a water lateral, but does not
include a building connection, that is a pipe extending from a lateral at the
property line or a curb line to the house or plumbing fixtures on the
property to be served.
(h) The word sewer includes both sanitary and storm sewers unless a
contrary intention is shown.
(4) Improvements authorized to be made under the provisions of this section
are divided into eight (8) classes, as follows:
14
(a) Water main improvements, which include the laying or construction
of water mains, the relaying where necessary of parts of paved streets
and sidewalks torn up or damaged incident to the laying or construction of
such mains, and in any case where the improvement is made upon
petition and the petition so requests or in any case where the
improvement is made without petition and the city council. so directs, the
laying of water laterals.
(b) Storm sewer improvements, which include the laying or construction
of storm sewers, the relaying where necessary of parts of paved streets
and sidewalks torn up or damaged incident to the laying or construction of
such sewers, and in any .case where the improvement is made upon
petition and the petition so requests, or in any case where the
improvement is made without petition and the city council so directs, the
laying of storm sewer laterals.
(c) Sanitary sewer improvements, which include the laying or
construction of sanitary sewers, the relaying, where necessary, of parts of
streets and sidewalks torn up or damaged incident to the laying or
construction of such sewers, and in any case where the improvement is
made upon petition and the petition so requests, or in any case where the
improvement is made without petition and the city council so directs, the
laying of sanitary sewer laterals, the construction or reconstruction of
pumping stations and force mains or the construction or reconstruction of
sanitary sewer outfalls.
(d) Street paving improvements, which include the grading, regrading,
paving, repaving, macadamizing and remacadamizing of streets, with
necessary drainage, sewer inlets, manholes and catchbasins and the
construction or reconstruction of retaining walls made necessary by any
change of grade incident to such improvement, and in any case where
the improvement is made upon petition if the petition so requests, or in
any case where the improvement is made without petition if the city
council so directs, it may include the construction or reconstruction of
curbs, gutters and drains.
(e) Sidewalk improvements, which include the grading, regrading,
construction and reconstruction of paved or otherwise improved
sidewalks, the construction or reconstruction of retaining walls made
necessary by and incident to such improvement, and in any case where
the improvement is made upon petition, if the petition so requests, or in
any case where the improvement is made without petition if the city
council so directs, it may include the construction or reconstruction of
curbs, gutters, and drains.
(f) Grass plot improvements, which include the grading and planting of
grass plots in a street or along one or both sides of a street.
(g) Lighting improvements, which include the construction of street
lighting systems, consisting of ornamental lights or of lights of greater
strength, or lights placed at more frequent intervals, or both, than is
ordinarily provided by the city making the improvement for streets of such
character at public expense.
15
(h) Waterfront improvements, which embrace the construction of
boardwalks, bulkheads, seawalls and other retaining walls along a bay,
river, canal or lake, with necessary fills and dredging, and may embrace
the acquisition by purchase, condemnation or otherwise of land, rights
and easements therefor.
(i) Opening, clearing, grading, drainage, and otherwise improving
streets, avenues and alleys dedicated for public use by a recorded map
or plat.
(5) The power of the city to make the local improvements embraced in this
section shall be exercised only upon petition as set out in subsection (7) of this
section, except in those cases covered by subsection (8) of this section, in which
cases such power may be exercised without petition. The provisions of this
section shall not be construed to limit authority granted elsewhere in this charter
or by general or special law to make special assessments for local improvements
without the filing of a petition as provided in this section.
(6) Any petition to the city council for the making of the local improvements
authorized by this section may embrace any one or more of the classes of local
improvements named in subsection (4), and may embrace improvements to be
made on or in more than one street; provided, any improvement to be made on
or in more than one street shall be practically uniform in cost and kind throughout
the improvement.
(7) The petition for any one or more of such local improvements shall designate
by a general description the improvement or improvements proposed, and shall
request that the same be made in conformity with the provisions of this section
and that such proportion of the cost of each of such improvements as may be
specified in the petition be specially assessed against the property abutting on
the street or streets or part thereof in which or on which such improvements are
proposed to be made. The petition shall be signed by at least a majority in
number of the owners, which majority must own at least a majority of all the lineal
feet of frontage, of the lands abutting upon the street or streets or part of a street
or streets proposed to be improved, excluding street intersections, and for the
purpose of the petition, all the owners of undivided interests in any land shall be
deemed and treated as one person and such land shall be sufficiently signed for
when the petition is signed by the owner or owners of a majority in amount of
such undivided interests; provided, that for the purpose of this subsection the
word "owners" shall be considered to mean the owners of any life estate, of an
estate by entirety, or of the estate of inheritance, and shall not include
mortgagees, trustees of a naked trust, trustees under deeds of trust to secure the
payment of money, lienholders or persons having the inchoate rights of a
surviving spouse. Upon the filing of such petition with the city council, the clerk,
or other person designated by the council, shall investigate the sufficiency of the
petition, and if it is found to be sufficient, he shall certify the same to the council.
(8) Whenever in the judgment of the city council any street or part of a street is
unsafe and dangerous, or whenever the paving or repaving of any street or part
thereof is necessary in order to connect streets already paved, or whenever the
paving of any street is necessary in order to connect any paved portion of any
city streets with a paved highway outside the corporate limits of the city, or
whenever the paving of any street or part thereof is necessary to provide a paved
16
approach to any railroad underpassor overpass or other bridge, or whenever any
paved street or part thereof has been widened, if in such case, in the opinion of
the city council, public interest requires that the improvements be made, and if, in
the opinion of the council, the abutting property will be benefitted by the
improvement to the extent of the part of the cost thereof to be assessed against
such abutting property, the council may without petition of the property owners
order the making of such improvement. Whenever any such improvement is
ordered made by authority of this subsection, the ordering of the paving of any
streef or part thereof may include the necessary water main and sewer
improvements and the necessary water and sewer laterals, and it may, but need
not, include the construction of sidewalks on one or both sides of the street.
(9) Upon the finding by the city council that the petition for a local. improvement
or improvements is sufficient, or when it is proposed to make without petition any
improvement or improvements authorized to be made without petition by
subsection (8) of this section, the council shall adopt a resolution which shall
contain substantially the following:
(a) That a sufficient petition has been filed for the making of the
improvement or improvements; or, if it is proposed to make the
improvement or improvements without petition, a statement of the
reasons proposed for the making thereof;
(b) A brief description of the proposed improvement or improvements;
(c) The proportion of the cost of the improvement or improvements to be
specially assessed and the terms of payment;
(d) A notice of the time and place, when and where a public hearing will
be held on the proposed improvement or improvements. (The time fixed
for such public hearing shall be such as to allow of notice being given
thereof not less than ten (10) days prior thereto.);
(e) A notice that all objections to the legality of the making of the
proposed improvement or improvements shall be made in writing, signed
in person or by attorney, and filed with the clerk of the city at or before the
time of the hearing and that any such objections not so made will be
waived.
At least ten (10) days prior to the date fixed for the hearing, the city council shall
cause a notice to be published at least one time in a newspaper of general circulation in
the city. The notice shall contain the information described in paragraphs (a) through (e)
of this subsection (9).
(10) At the time for the public hearing, or at some subsequent time to which
such hearing shall be adjourned, the city council shall consider such objections to
the legality of the making of the improvement or improvements as have been
made in compliance with paragraph (e) of the preceding subsection, together
with such objections as may be made to the policy or expediency of the making
of the improvement or improvements; and the council shall thereafter determine
whether it will order the making of the improvement or improvements. Any
objection against the legality of the making of the improvement or improvements
not made in writing, signed in person or by attorney, and filed with the clerk of the
city at or before the time or adjourned time of such hearing shall be considered
17
as waived; and if any such objection shall be made and shall not be sustained by
the council, the adoption of the resolution ordering the making of the
improvement or improvements, as provided in the next following subsection, shall
be thefinal adjudication of the issues presented, unless within ten (10) days after
the adoption of such resolution proper steps shall be taken in a court of
competent jurisdiction to secure relief.
(11) After such public hearing, if the city council determines to make the
improvement or improvements proposed, the council shall adopt a resolution
which shall contain:
(a) If the improvement or improvements are to be made by virtue of a
petition, a finding by the council as to the sufficiency of the petition. (The
finding of the council as to the sufficiency of the petition shall be final and
conclusive.) If the improvement or improvements are to be made without
petition by virtue of the authority contained in subsection (8) of this
section, a finding by the council of such facts as are required by the
subsection in order to authorize the council to order the improvement or
improvements made without petition;
(b) A general description of the improvement or improvements to be
made and the designation of the street or streets or parts thereof where
the work is to be done;
(c) If the improvement directed to be made is the paving of a street or
part thereof wherein a street railway or railroad company has tracks, a
direction that the company pave that part of the street occupied by its
tracks, such part to include the space between the tracks, the rails of the
tracks, and eighteen (18) inches in width outside such tracks, with such
material and in such manner as the council may prescribe, and that
unless such paving shall be completed on or before a day specified in the
resolution, the council will cause the same to be done; provided, however,
that where any such company shall occupy such street or streets under a
franchise or contract which otherwise provides, such franchise or contract
shall not be affected by this section, except in so far as may be consistent
with the provisions of such franchise or contract;
(d) If the improvement directed to be made includes the construction of
water mains or sewers, and in order to provide such mains or sewers in
the street or streets to be improved it is necessary to extend the same
beyond the limits of such street or streets, the resolution shall contain a
provision for the necessary extension of such mains or sewers and a
further provision that the cost of such extension shall eventually be
assessed. against the lots 'or parcels of land abutting on the street or
streets in whichsuch extensions are made but that such assessment shall
not be made until such time as the council shall thereafter determine;
(e) If the improvement directed to be made is the paving of a street or
part thereof, or the construction of sidewalks, the resolution may, but
need not, contain a direction that the owner of each lot abutting on the
part of the street to be improved, connect his lot by means of laterals with
water mains, gas or sewer pipes, or any one or more thereof, located in
the street adjacent to his premises in accordance with the requirements of
18
the city governing the laying of such laterals, and that unless such
ownerscause such laterals to be laid on or before a date specified in the
resolution, such date to be not less than thirty (30) days after the date of
the resolution, the council will cause the same to be laid;
(f) A designation of the proportion of the cost of the improvement or
improvements to be assessed against abutting property, and of the
number of equal annual installments in which assessments may be paid.
The resolution after its passage shall be published at least once in some
newspaper published in the city, or, if there be no such newspaper, the
resolution shall be posted in three (3) public places in the city for at least
five (5) days.
(g) In lieu of publishing the resolution in the manner prescribed by
paragraph (f) of this subsection (11), the city council may publish, or
cause to be published, a notice containing the information specified in
paragraph (b) and the first sentence of paragraph (f) of this subsection. If
the city council, in its discretion, chooses to publish the notice prescribed
by this paragraph in lieu of publishing the resolution prescribed in said
subparagraph (f) then such notice shall be published at least once in
somenewspaper published in the city, or, if there be no such newspaper,
the notice shall be posted in three public places in the city for at least five
(5) days. Two (2) or more notices may be consolidated into a single
notice.
(12) The city council shall have power to determine the character and type of
construction and of material to be used and to determine any other details of plan
or construction necessary to be determined in making any of the improvements
authorized by this section and to determine whether any work to be done by the
city shall be done by contract or by forces of the city. The council shall have
power also subject to the provisions of subsection (11), paragraph (e) of this
section to determine the number of water,sewer and gas laterals that shall be laid
to any lot on any street to be improved. If the work or any part thereof is to be
done by contract, the city may let all of the work in one contract, or it may divide
the same into several contracts, and may let the contracts separately. In any
case where part of a street is required to be paved by a street railway or railroad
company as provided in the next preceding subsection; the city may, in the
discretion of the council, contract with the street railway or railroad company for
the paving, or work incidental thereto, or both, and the cost of the paving or work
incidental thereto, or both, as fixed by the contract shall constitute a lien on the
franchises and other property of such street railway or railroad company.
(13) Upon the completion of the improvement or improvements to be made by
the resolution, the city council shall ascertain the total cost thereof. In addition to
other items of cost, there shall be included in such total cost the cost of all
necessary legal services, the amount of damages paid or to be paid for injury to
property by reason of any change of grade or drainage, including court costs and
other expenses incidental to the determination of such damages, and the cost of
retaining walls, sidewalks or fences built or altered in lieu of cash payment for
such property damage, including the cost of moving or altering any building. In
determining the cost of any street lighting improvement, the council shall
ascertain the excess of cost of construction of the system of lighting over and
above the cost of construction of such system of lighting as the city provides at
19
public expense for streets of the same kind, and such excess shall be considered
the cost thereof. In determining the cost of any of the improvements authorized
by this section, the council shall include therein the interest paid on the cost of
the improvement during the period of construction. The determination of the
council as to the total cost of any improvement shall be conclusive.
(14) Having determined such total cost, the city council shall thereupon make a
preliminary assessment as hereinafter set out in this section. Such preliminary
assessment shall, however, be advisory only, and shall be subject to the action
of the council thereon as hereinafter set out in subsection (17) of this section.
The preliminary assessment shall be made on the basis hereinafter set out in this
subsection for the classes of improvements indicated; provided, that if the
petition, or the resolution, in thosecases where the improvement was ordered
made without petition, specified that there should be specially assessed against
the abutting property a smaller proportion of the cost of any improvement than is
hereinafter specified in this section, then there shall be assessed against the
abutting property only such proportion of the cost of the improvement as was
specified in the petition or in the resolution.
(a) Street paving. The total cost of any street paving improvement,
exclusive of so much of the cost as is incurred at street intersections and
the share of street railways or railroads, shall be specially assessed
against the lots and parcels of land abutting directly on the street paved,
according to the extent of their respective frontages thereon, by an equal
rate per foot of such frontage. The cost of that part of the paving required
to be borne by a street railway or railroad, which paving is done by the
city after default by the street railway [or railroad] in making the same as
hereinbefore provided in this section, or which is done by the city by
contract with the railway or railroad as provided in subsection (12) of this
section, shall be assessed against the street railway or railroad, and the
assessment shall be a lien on all of the franchises and property of the
street railway or railroad company, and may be collected by sale of such
property and franchises as is provided in subsection (23) of this section;
provided, further, that in case of a corner lot, used as a single lot, the
council may provide by ordinance for the city to bear a part of the cost of
paving in accordance with the following formula, the amounts or distances
therein shown being maximum amounts or distances which may be
reduced by the ordinance:
(i) In the event that neither of the streets abutting a corner lot,
used as a single lot, has ever been paved, such lot shall be
exempt from assessment for the paving improvement alongside of
such lot to the extent of twenty (20) per cent of the first one
hundred fifty (150) feet thereof or thirty (30) feet, whichever is
less. Thereafter, upon the paving of the intersecting street on
which such lot abuts, such lot shall be exempt from assessment
for the paving of the street to the extent of fifty (50) per centof the
frontage on such street or thirty (30) feet, whichever is less.
(ii) In the event that the street alongside of a corner lot, used as a
single lot, is paved and the intersecting street is to be paved, such
lot shall be exempt from assessment for the paving of the
20
intersecting street to the extent of fifty (50) per cent of the frontage
thereon or thirty (30) feet, whichever is less.
(iii) In the event a street in front of a corner lot, used as a single
lot, has been paved and the street alongside of such lot is to be
paved, the lot shall be exempt from assessment for the paving
improvement alongside of such lot to the extent of forty (40) per
cent of the frontage on such street or sixty (60) feet, whichever is
less.
The exemption herein provided shall apply only in
areas zoned for residential use or for apartments, and such
portion of the cost of construction as would otherwise be
assessed against such corner lot shall be borne by the city.
(b) Sidewalks. The total cost of constructing or reconstructing sidewalks
shall be assessed against the lots and parcels of land abutting on that
side of the street upon which the improvement is made, according to their
respective frontages thereon by an equal rate per foot of such frontage,
the lots within a block being deemed to abut upon a sidewalk although the
latter extends beyond the lots to the curb line of an intersecting street;
provided, further, that in case of a corner lot, used as a single lot, the
council may provide by ordinance for the city to bear a part of the cost of
sidewalk improvements in accordance with the following formula, the
amounts or distances therein shown being maximum amounts or
distances which may be reduced by the ordinance:
(i) In the event that neither of the streets abutting a corner lot,
used as a single lot, has sidewalks, such lot shall be exempt from
assessment for the sidewalk improvement alongside of such lot to
the extent of twenty (20) per cent of the first one hundred fifty
(150) feet thereof or thirty (30) feet, whichever is less. Thereafter,
upon-the construction of sidewalks on the intersecting street, on
which such lot abuts, such lot shall be exempt from assessment
for the sidewalk improvement on the street to theextent of fifty (50)
per cent of the frontage on such street or thirty (30) feet,
whichever is less.
(ii) In the event that the street alongside of a corner lot, used as a
single lot, has sidewalks and sidewalks are constructed on the
intersecting street, such lot shall be exempt from assessment for
the sidewalks on the intersecting street to the extent of fifty (50)
per cent of the frontage thereon or thirty (30) feet, whichever is
less.
(iii) In the event a street in front of a corner lot, used as a single
lot, has sidewalks and sidewalks are to be constructed on the
intersecting street, the lot shall be exempt from assessment for
the sidewalk improvement alongside of such lot to the extent of
forty (40) per cent of the frontage thereon or sixty (60) feet,
whichever is less.
The exemptions herein provided shall apply only in
areas zoned for residential use or for apartments, and such
21
portion of the cost of construction as would otherwise be
assessed against such corner lot shall be borne by the
City.
(c) Water mains and sewers. In the case of water mains and storm and
sanitary sewers, the cost of not exceeding an eight (8) inch water or
sanitary sewer main and of not exceeding a thirty (30) inch storm sewer
main and of such portion of the mains as lie within the limits of the street
or streets, or parts thereof, to be improved as provided in the petition or
resolution ordering the same, shall be assessed against the abutting
property. Such cost shall be assessed against the lots and parcels of land
abutting on the street or streets, or parts thereof according to their
respective frontages thereon (i.e., the entire frontage benefitted by the
water or sanitary sewer project) by an equal rate per foot of such
frontage; provided, that in case of a corner lot, used as a single lot, no
assessment shall be made against the long side of the lot abutting on the
intersecting streets for any part of the frontage of such long side of the lot
except that portion in excess of two hundred (200) feet if the lot is in a
residential section of the city, or in excess of one hundred (100) feet if the
lot is in a business section of the city, and in such case the portion of the
cost as would otherwise be assessed against the lot shall be borne by the
city; provided further, that if a water or sanitary sewer main in excess of
eight (8) inches in size or a storm sewer main in excess of thirty (30)
inches in size is laid in the portion of the street or streets, then the cost of
the water or sanitary sewer main in excess of the cost of an eight (8) inch
mainand the cost of the storm sewer main in excess of a thirty (30) inch
main shall be borne by the city, provided further, that if the resolution
ordered the construction of any septic tank or disposal plant, no part of
the cost of the same shall be specially assessed; provided further, that if
the resolution ordered the construction of any pumping station, force main
or sanitary sewer outfall, the costs thereof may be assessed against the
lots and parcels of land abutting on the street or streets, or parts thereof,
according to their respective frontages thereon (i.e., the entire frontage
benefitted by such pumping station, force main or sanitary sewer outfall)
by an equal rate per front foot of such frontage; provided, however, in the
case of a corner lot, used as a single lot, where there is a sewer already
laid on the intersecting street on which the lot abuts and by which the lot
is or can be served, no assessment shall be made against the lot for the
costs of any pumping station, force main or sanitary sewer outfall incident
to the second sewer for any part of the frontage of the lot except that
portion in excess of two hundred (200) feet if the lot is in a residential
section, or in excess of one hundred (100) feet if the lot is in a business
section, and in such case the portion of the cost as would otherwise be
assessed against the lot shall be borne by the city Nothing contained
herein shall be construed to limit the right of the city to contract with any
property owner or owners for the construction ofany pumping station,
outfall, septic tank or disposal plant or for the construction of water mains
or storm or sanitary sewers and for the assessment of the cost thereof
according to the terms of such contract.
(d) Water and sewer laterals. The entire cost of each water and sewer
lateral required to be laid by the owner of the property for or in connection
22
with which such lateral is laid, but laid by the city after default by the
property owner in making the same as hereinbefore provided, shall be
specially charged against the particular lot or parcel of land for or in
connection with which it was made.
(e) Water mains and sewers and laterals; flat rate assessment. In lieu of
assessing each water and sanitary sewer improvement project on the
basis of the cost of that particular project, the city council shall have
authority to establish flat rates per frontage foot for the assessment of
property abutting water and sewer improvement projects, based on the
average cost of constructing eight (8) inch water mains and eight (8) inch
sanitary sewer mains in the city, and shall also have authority to establish
flat rates for the assessment of property abutting the installation of water
and sanitary sewer laterals, based on the average cost of installing such
laterals in the city. The Council may then assess property abutting water
and sanitary sewer improvement projects on the basis of the flat rates so
established, subject to the right of any nonpetitioning property owner to
have the assessment against his property adjusted as provided by law
upon a showing that his property has not been benefitted to the extent of
the assessment.
(f) Grass plots. The entire cost of grading or otherwise improving, or of
planting, the grass plots in any street or part thereof, shall be assessed
against the lots and parcels of land abutting on the street or part thereof
wherein or whereon such improvements are made by an equal rate per
front foot of such frontage; provided, that this subsection shall be
construed to mean that when a grass plot in any street is graded or
planted or otherwise improved, the cost thereof shall be assessed against
all of the property abutting on the street within the block where such grass
plot is located.
(g) Lighting improvements. The cost of any lighting improvement, such
cost being determined as provided in subsection (13) of this section, shall
be specially assessed against the lots and parcels of land abutting
directly on the street or streets, or part thereof, where such improvement
is made, according to their respective frontage thereon by an equal rate
per foot of such frontage.
(h) Waterfront improvements. The cost of any waterfront improvement
shall be specially assessed against the lots and parcels of land abutting
on the improvement according to their respective frontages thereon by an
equal rate per foot of such frontage.
(15) For the purpose of assessment, the city council shall cause to be prepared
a preliminary assessment roll, on which shall be entered a brief description of
each lot or parcel of land assessed, the amount assessed against each such lot
as determined under the provisions of the next preceding subsection, and the
name or names of the owner or owners of each such lot, as far as the same can
be ascertained; provided, that a general plan map of the improvement or
improvements on which is shown the frontage and location of such lot on the
street improved, together with the amount assessed against each such lot and
the name or names of the owner or owners thereof, as far as the same can be
ascertained, shall be a sufficient assessment roll. If the resolution directed the
23
making of more than one improvement, a single preliminary assessment roll for
all of the improvements authorized by such resolution shall be sufficient, but the
cost of each improvement to each lot affected shall be shown separately.
The city council may choose not to levy assessments against property owned by
the city, in which case, the amount assessable against city property shall be omitted
from the preliminary assessment roll and shall not be assessed against the remaining
property owners. The city council shall count city-owned property for the purpose of
determining the sufficiency of a petition submitted pursuant to subsection (7) of this
section notwithstanding the decision of the city council not to levy an assessment
againstsuch property.
(16) After such preliminary assessment roll has been completed, the city council
shall cause it to be filed in the office of the city clerk for inspection by parties
interested, and shall cause to be published one time, in some newspaper
published in the city, or if there be no such newspaper the council shall cause to
be posted in three (3) public places in the city, a notice of the completion of the
assessment roll, setting forth a description in general terms of the local
improvement or improvements, and stating the time fixed for the meeting of the
council for the hearing of objections to the special. assessments, such meeting to
be not earlier than ten (10) days after the first publication or from the date of
posting of such notice. Any number of assessment rolls may be included in one
notice. The council shall publish in the notice the amount of each assessment.
(17) At the time appointed for that purpose or at some other time to which it may
adjourn, the city council shall hear the objections to the preliminary assessment
roll of all persons interested, who may appear and offer proof in relation thereto.
Then or thereafter, the council shall either annul or sustain or modify in whole or
in part the prima facie assessment as indicated on the roll, either by confirming
the prima facie assessment against any or all lots or parcels described therein, or
by canceling, increasing or reducing the same according to the special benefits
which the council decides each of the lots or parcels has received or will receive
on account of such improvement, except that assessments against railroads
made because of contract or franchise obligations to pay a portion of cost shall
be in accordance with such obligations. If any property which may be chargeable
under this section shall have been omitted from the preliminary roll or if the prima
facie assessment has not been made against it, the council may place on the roll
an apportionment to such property. The council may thereupon confirm the roll,
but shall not confirm any assessment in excess of the special, benefits to the
property„assessed and the assessments so confirmed shall be in proportion to
the special benefits, except as hereinabove provided in the case of franchise
obligations of railroads. Whenever the council shall confirm an assessment for a
local improvement, the city clerk shall enter on the minutes and on the
assessment roll, the date, hour, and minute of such confirmation, and from the
time of such confirmation the assessments embraced in the assessment roll shall
be a lien on the property against which the same are assessed of the same
nature and to the same extent as county and city taxes and superior to all other
liens and encumbrances. After the assessment roll is confirmed a copy of the
same shall be delivered to the collector of revenue of the city.
(18) If the owner of, or any person interested in, any lot or parcel of land against
which an assessment is made is dissatisfied with the amount of such
assessment, he shall within fifteen (15) days after the confirmation of the
24
assessment roll file a written request with the city clerk for reconsideration of said
assessment by the city council. If the city council has not previously heard the
requesting person on the matter, it shall reconsider the assessment and affirm or
modify its action. If it has previously heard the requesting person on the matter,
the city council may affirm its previous action without further consideration, or it
may, in its discretion, again consider the matter and affirm or modify its previous
action. If the requesting person still is dissatisfied with the city council action, he
shall within twenty (20) days after such further action serve on the city clerk a
written notice that he is taking an appeal to the Superior Court of Durham County
and a statement of facts upon which he bases his appeal. The appeal shall be
tried in the Superior Court of Durham County as other actions at law. The remedy
herein provided for any person dissatisfied with the amount of the assessment
against any property of which he is the owner or in which he is interested shall be
exclusive.
(19) If it shall be made to appear to the city council after confirmation of any
assessment roll that any error has been made therein, then the council shall
cause to be published one time in some newspaper published in the city, o,r if
there be no such newspaper the council shall cause to be posted at three (3)
public places in the city, a notice referring to the assessment roll in which such
error was made, naming the owner or owners of the lot or parcel of land with
respect to which such error was made, if thesame can be ascertained, and
naming the time and place fixed for the meeting of the council for the correction
of the error, such meeting not to be earlier than ten (10) days from the publication
or from the date of the posting of the notice. At the time fixed in the notice or at
some subsequent time to which the council may adjourn, the council, after giving
the owner or owners of the property affected and other persons interested therein
an opportunity to be heard, may proceed to correct the error, and the
assessment then made shall have the same force and effect as if it had originally
been properly made.
(20) The city council shall have the power, when in its judgment there is any
irregularity, omission, error or lack of jurisdiction in any of the proceedings
relating thereto, to set aside the whole of the local assessment made by it, and
thereupon to make a reassessment. In such case there shall be included, as a
part of the cost of the public improvement involved, all interest paid or accrued on
notes or certificates of indebtedness, or bonds issued by the city to pay the
expenses of such improvement. The proceeding shall, as far as practicable, be in
all respects as in the case of original assessments, and the reassessment shall
have the same force as if it had originally been properly made.
(21) After the expiration of twenty (20) days from the confirmation of the
assessment roll, the .collector of revenue, or such other officer of the city as the
council may direct so to do, shall cause to be published one time in such
newspaper published in the city, or if there be no such newspaper, shall cause to
be posted at three (3) public places in the city, a notice that any assessment
contained in the assessment roll, naming and describing it, may be paid to him at
any time before the expiration of thirty(30) days from the date of publication or
posting of the notice, without interest from the date of confirmation of the
assessment roll, but that if the assessment is not paid in full within this time, all
installments thereof shall bear interest at a rate fixed by the city council of not
25
more than nine (9) per cent per annum from the date of confirmation of the
assessment roll.
(22) The property owner or street railway or railroad hereinbefore mentioned in
this section shall have an option and privilege of paying for the improvements
hereinbefore provided in cash as provided in the preceding subsection or in not
less than twelve (12) equal monthly installments nor more than ten (10) equal
annual installments as may have been determined by the original resolution
ordering the improvement or improvements. Nothing in this subsection shall
preclude the payment of assessments in advance ofthe maturity or installment
schedule affixed by the city council. If paid in installments, such installments shall
bear interest at a rate fixed by the city council of not more than nine (9) per cent
per annum from the date of the confirmation of the assessment roll. If any
assessment is not paid in cash, the first installment thereof with interest thereon
shall become due and payable thirty (30) days after the publication or posting of
the notice required by the preceding subsection and one subsequent installment
and interest thereon shall be due and payable on the same day of the same
month in each successive year until the assessment is paid in full; provided,
however, that if the council shall so direct, such installments shall become due
and payable on the same date when property taxes of the city are due and
payable. If any installment with interest thereon is not paid when due, it shall be
subject to the same penalties as are now prescribed by law for unpaid taxes, in
addition to the interest herein provided for. The whole assessment may be paid
at any time by the payment of the full amount due with accrued interest.
(22.1) (a) Notwithstanding subsection 22 of this section, the city council may
allow payment of assessments over an extended period of time, not to exceed
twenty (20) years, and at a reduced interest rate where the property owner
demonstrates special financial hardship. In case of an assessment for water or
sewer improvements, the special payment provisions shall apply until the earlier
of (i) when the owner makes application for connection to receive water or sewer
service; or (ii) such time as a fee interest in theproperty is transferred or
conveyed, whether voluntarily or involuntarily, and whether during the lifetime of
the owner or by devise or descent. In case of an assessment for street paving,
sidewalks, or other improvements, the special payment provisions shall apply
until such time as a fee interest in the property is transferred or conveyed,
whether voluntarily or involuntarily, and whether during the lifetime of the owner
or by devise or descent. At the time of application for connection or the time of
transfer or conveyance, as applicable, the unpaid balance of the assessment
shall become .immediately due and payable in full. For purposes of this
subsection, a lease, mortgage, or deed of trust shall not be considered as a
transfer or conveyance of a fee interest in the property. In no event may the due
date of the unpaid balance of the assessment extend beyond the lifetime of the
owner.
(b) As a prerequisite to exercising the authority granted by this
subsection, the city council shall define what constitutes a special,
financial hardship, and may amend this definition from time to time.
(c) The authority granted by this subsection shall be exercised only upon
written application of the owner of property subject to the assessment.
The application must be filed with the city clerk no later than fifteen (15)
days after confirmation of the assessment roll. The application shall be on
26
a form approved by the city council. The application shall contain such
information and documentation pertaining to special.. financial hardship,
and such other information, as the city council may require.
(d) The city council may delegate authority to the city manager or
designee of the city manager to approve or deny any application
submitted pursuant to this section. If any such application shall be
approved by the city, the city clerk shall mark upon the confirmed
assessment roll such words as shall indicate such approval by the city,
___
the special payment provisions and the date and time of the approval.
(23) In case of the failure of any property owner or street railway or railroad
company to pay any installment when the same shall become due and payable,
then and in that event all of the installments remaining unpaid shall immediately
become due and payable, and the property and franchises may be sold by the
city under the same rules, regulations, rights of redemption and savings as are
now prescribed by law for the sale of land for unpaid taxes. Collection of such
assessments with interest and penalties, mayalso be made by the city by
proceeding to foreclose the lien of assessments as a lien for mortgages is or may
be foreclosed under the laws of the state, and it shall be lawful to join in any bill
'for foreclosure any one or more lots or parcels of land, by whomsoever owned, if
assessed for an improvement ordered by the same resolution. After default in the
payment of any installment, the payment of the installment, together with interest
and penalties due thereon, before the lot or parcel of land, against which the
same is a lien, is sold or the lien is foreclosed as hereinbefore provided, shall bar
the right of the city to sell the land or to foreclose the lien thereon by reason of
the default.
(24) If the resolution ordering the making of any improvement or improvements
included a provision for any necessary extension of a water or sewer or sewers,
as provided in subsection (11), paragraph (d) of this section, at such time after
the completion of the extension or extensions as, in the judgment of the city
council, circumstances justify the assessment of the cost thereof, the council
shall cause a preliminary assessment to be made as provided in subsection (14),
paragraph (c) of this section, and the procedure thereafter to be followed with
respect to such assessment and the force and effect thereof shall be as already
prescribed in this section.
(25) After any lighting. improvement is made as provided in this section, the city
is hereby authorized, as long as the lighting system shall be maintained, to make
an annual assessment against the lands assessed with the original cost of the
improvement sufficient to cover the excess of actual cost of maintenance and
operation of the lighting system over and above the cost of maintenance and
operation of such system of lighting as the city provides at public expense for
streets of the same character as that whereon the lighting improvement is made.
To that end, the city council shall cause to be prepared a preliminary assessment
which shall, as far as practicable, conform to the requirements of subsection (14),
paragraph (g) of this section; and the procedure thereafter to be followed with
respect to such assessment and the force and effect thereof shall be as already
prescribed in this section.
(26) When any special assessment has been made against any property for any
improvement authorized by this section, and it is desirable that the assessment
27
be apportioned among subdivisions of the property, the city council shall have
authority, upon petition of the owner of the property, to apportion the assessment
fairly among the subdivisions. Thereafter, each of the subdivisions shall be
relieved of any part of such original assessment except the part thereof
apportioned to the subdivision and the part of the original assessment
apportioned to any such subdivision shall be of the same force and effect as the
original assessment. The provisions of this subsection shall not be construed to
limit authority granted elsewhere in this charter or by general or special law to
apportion assessments among subdivisions of property without requiring a
petition from or the consent of the owners of such property.
(27) No change of ownership of any property or interest therein after the
passage of a resolution ordering the making of any improvement authorized by
this section shall in any manner affect subsequent proceedings, and such
improvement may be completed and assessments made therefor as if there had
been no change in such ownership.
(28) No lands in the city shall be exempt from special assessments as provided
in this section except lands belonging to the United States; and the city council
and the officers, trustees or boards of all incorporated or unincorporated bodies
in whom is vested the right to hold and dispose of real property shall have the
right by authority duly given to sign the petition for any local improvement
authorized by this section; provided, however, that assessments against land
owned by the State of North Carolina arecontrolled by the provisions of G.S.
160A-221; provided further that, except as provided by this section, assessments
against railroads are controlled by the provisions of G.S. 160A-222.
(29) All proceedings for special. assessment under the provisions of this section
shall be regarded as proceedingsin rem, and no mistake or omission as to the
name of any owner or person interested in any lot or parcel of land affected
thereby shall be regarded a substantial mistake or omission.
(Laws 1977, Ch. 632, § 1; Laws 1981, Ch. 694, § 3; Laws 1983, Ch. 458, § 3; Laws
1985, Ch. 641, § 1; Laws 1987, Ch. 753, § 1; Laws 1991, Ch. 577, §§ 1, 2; Laws 1991,
Ch. 992, § 3; Laws 1995, Ch. 755, § .1)
Sec. 78. Assessments for local improvements without petition.
(1) Supplemental to and independent of the powers and authority heretofore or
hereafter granted the city by the general assembly, the city council is authorized
and empowered without the necessity of having filed by the owners of abutting
property, to construct and install or contract for the construction and installation
of paving, repaving, macadamizing, and remacadamizing of any of the public
streets, sidewalks and alleys, and the construction, reconstruction and altering of
curbs, gutters and drains in anyof the public streets and alleys, and the
construction and installation of sanitary sewers, water mains and sanitary sewer
and water laterals in any of such public streets and alleys, and specially assess
the entire cost of such construction and installation, except the part thereof as is
incurred at street intersections, against the property abutting upon the street or
alley or streets or alleys which are so improved.
28
The city council is further authorized and empowered without the necessity of
having a petition filed with it to open, clear, grade, construct drainage and otherwise
improve streets, avenues and alleys which have been dedicated to public use by making
and recording in the office of the register of deeds a map or plat designating such
streets, avenues or alleys thereon, and to specially assess the entire cost of such
opening, clearing, grading, construction of drainage and other improvements to such
streets,avenues or alleys against the property abutting upon such streets, avenues or
alleys so opened and improved.
The city council may specially assess less than the total cost against the abutting
property if it should determine by resolution that it would be inequitable to specially
assess the entire cost thereof; and in determining whether it would be inequitable, the
city council is authorized to take into consideration the location, width, use and general
importance of such street or alley as it relates to the public welfare, safety, health, and
convenience.
(2) When it is proposed to make without petition any improvement or
improvements described in subsection (1) hereof, the city council shall adopt a
resolution which shall contain substantially the following:
(a) That this proceeding is taken under and will be governed by the
provisions of this charter (stating the number of the chapter and section);
(b) A statement of the reasons proposed for the making thereof;
(c) A brief description of the proposed improvement or improvements;
(d) The proportion of the cost of the improvement or improvements to be
specially assessed and the terms of payment;
(e) A notice of the time and .place when and where a public hearing will
be held on the proposed improvement or improvements. The time fixed
for the public hearing shall be such as to allow of notice being given
thereof not less than ten (10) days prior thereto;
(f) A notice that all objections to the legality of the making of the
proposed improvement or improvements shall be made in writing, signed
in person or by attorney, and filed with the city clerk at or before the time
of such hearing, and that any such objections not so made will be waived.
At least ten (10) days prior to the date fixed for the hearing, the city council shall
cause a notice to be published at least one time in a newspaper of general circulation in
the city. The' notice shall contain the information described in paragraphs (a) through (f)
of this subsection (2). (Laws 1981, Ch. 694, § 4)
(3) In the event the city council elects to proceed under this section to make
local improvements and specially .assess the cost thereof against abutting
property without the filing of a petition therefor, as is authorized by this section,
and does adopt the resolution provided for in subsection (2), then and in such
event, the procedure applicable to such proceedings from that point to the final
completion of the improvement, the final confirmation of the assessment roll, and
the remedies available, shall be asparticularly set forth and provided in
subsections (10) [through (29)] of Section 77 of this Charter.
(4) When electing to make local improvements and specially assess the cost
thereof upon abutting property, without petition therefor, as authorized by this
29
section, the city council shall specially state in the resolution adopted as provided
in subsection (2) hereof that it is proceeding under and by virtue of the provisions
of this section of the city charter.
Sec. 79. Apportionment of assessments among lots in subdivisions.
(1) In any case where one or more special assessments shall have been made
against ariy property for any local improvement or improvements authorized by
general or special law, and the property shall thereafter be subdivided or about to
be subdivided and it is, therefore, desirable that the assessment or assessments
be apportioned among the subdivision of such property, the city council may,
without requiring any petition or consent from the property owners or other
persons affected thereby, apportion the assessment or assessments, or the total
thereof, fairly among such subdivisions, as same are benefitted by the
improvement and release such subdivisions, if any, as in the opinion of the city
council are not benefitted by the improvement. Upon the making of such a
reapportionment and reallocation, each of the subdivisions shall be relieved of
any part of the original assessment or assessments except the part thereof
apportioned to a specific lot, parcel or subdivision, and the part of the original
assessment or assessments apportioned to any such lot, parcel or subdivision
shall be of the same force and effect as to such lot, parcel or subdivision to the
extent of the amount and interest thereon apportioned to the lot, parcel or
subdivision as the original assessment or assessments were prior to the making
of such reapportionment. The making of such an apportionment by the city
council shall be by resolution, which resolution shall set forth the manner and
extent of the reapportionment with sufficient clarity to enable the office of the city
collector of revenue to correctly and accurately reflect such reapportionment
upon the records of the assessment account or accounts in his office. Such
reapportionment or reassessment may include past due installments of principal,
interest and penalty, if any, as well as assessments not then due, and the
remaining installments shall fall due.
(2) When it is proposed to make a reapportionment of such assessments as
authorized by this section, the city council shall adopt a preliminary resolution
which shall contain substantially the following:
(a) A brief description or statement of the location of the property
affected;
(b) The total principal amount of the assessments involved in the
proposed reapportionment, together with a brief statement showing the
date of confirmation and the kind and character of the assessments;
(c) A notice of the time and place when and where a public hearing will
be held on the question of making a reapportionment or reassessment of
the assessments, and the extent thereof. (The time fixed for the public
hearing shall be such as to allow of notice being given thereof not less
than two (2) weeks prior thereto).
The resolution shall be published once a week for two (2) successive weeks in
some newspaper published in Durham County, the first publication to be at least two- (2)
weeks prior to the public hearing. At the time for the public hearing, or at some
30
subsequent time to which the hearing, shall be adjourned, the city council shall consider
all objections which may be made to the making of such reapportionment, and shall
thereafter determine whether it will make the reapportionment and the manner and
extent to which the reapportionment of assessments will be made. The final decision of
the city council shall be in the form of a resolution making the apportionment, which
resolution shall set forth all of the facts and pertinent provisions mentioned and required
by subsection (1) of this section.
Sec. 80. Condemnation and assessment authority outside the corporate
limits.
Supplemental to and independent of any other power and authority possessed by
the city, the city council shall have the right and power .to acquire rights-of-way,
easements, and other property outside its corporate boundaries in the exercise of the
power. of eminent domain in the same way and under the same authority and procedures
as it has the power to acquire such rights-of-way, easements and properly inside the
corporate boundaries, provided that nothing herein shall be construed to enlarge the
power of the city to condemn property already devoted to public use. The city council
shall also have the power and authority, in the extension, installation, construction,
operation, and maintenance of its water and sewerage facilities outside of its corporate
boundaries to create water and/or sewer benefit assessment districts and to specially
assess the cost of such water or sewer installations or construction against the property
in such benefit assessment districts on the basis of the front foot rule, the benefits
derived or to be derived by the property in such assessment districts, or some other
equitable method promulgated and established by the city council in the exercise of its
sound legislative discretion.
Sec. 81. Additional assessment authority.
In exercising the authority granted under Article 16 of Chapter 160A of the
General Statutes to extend and operate public enterprises outside its corporate limits,
the city council may specially assess all or part of the costs of constructing,
reconstructing, extending, building or improving water supply and distribution systems or
sewage collection and disposal systems, or any part thereof, outside the corporate limits
of the city against property benefitted therefrom: Special assessments levied pursuant to
this section shall be levied and collected in the same way and under the same authority
and procedures as special assessments levied and collected by the city upon property
within the corporate limits. No special assessment shall be levied under the authority of
this section until a petition which meets the requirements set forth in Section 77,
subsectioh (7) of this, Charter has been submitted to the city by the owners of the
property affected; provided, however, no petition is necessary in cases where the city
council finds that it is reasonably necessary or expedient to extend such water supply
and distribution system, sewage collection and disposal system, or both such systems,
to serve, in whole or in part, property in Durham County when the board of
commissioners of the County of Durham requests such extension or extensions.
{Laws 1995, Ch. 687, § 1)
31
Sec. 82. Lien affixed for water and sewer service.
(1) In addition tb any other powers and authority heretofore granted by general
law, local act or this charter, the city council is hereby authorized and empowered
to provide water service or sewer service or both such services to property,
within or without the corporate limits, abutting existing city water or sewer mains
or the right-of-way thereof and affix a lien to the property for the cost of providing
this service.
(2) The authority granted by this section shall be exercised only upon petition by
the owner or owners of such abutting property. Such petition shall be upon a
form. approved by the city council and shall contain:
(a) A description of the service or services requested; and
(b) A description of the property to be served; and
(c) The anticipated cost of furnishing such services; and
(d) .The term of payment by such property owner for the costs incurred
by the city in furnishing such service, including but not limited to, the
number of installments in which payment shall be made and the interest
rate to be applied to any unpaid balance; and
(e) Such other information as may be required by the city council.
(3) The city council may approve or deny any such petition submitted. If any
such petition shall be approved by the city council, the city clerk shall mark upon
the face of such petition such words as shall indicate such approval by the city
council, and the date and time of the approval.
(4) From and after approval of any petition submitted pursuant to this section, a
lien in favor of the city shall exist upon the property described in such petition for
the amount stated in such petition as the anticipated cost of furnishing such
service. Such lien shall be inferior to all prior and subsequent federal, state and
county tax liens of record but superior to all others. This lien may be collected by
foreclosure in the same manner as provided by law for the foreclosure of liens for
special. assessments. Any foreclosure proceeding instituted pursuant to this
section shall be deemed a proceedingin rem and no mistake or omission as to
the name of any owner or person interested in any lot or parcel of land affected
thereby shall be regarded a substantial mistake or omission. No change of
ownership shall affect any lien created pursuant to this section.
(5) Payment of the anticipated costs of providing service shall be as prescribed
by the terms of the petition approved by the city council. If any installment
payment due and payable under the terms of the approved petition shall be
unpaid for a period of thirty (30) days or more, then all subsequent installment
payments shall become due and payable and proceedings as set forth in
subsection (4) herein may be instituted.
(6) If the city council shall determine that the actual costs of furnishing the
services provided for in any approved petition shall have exceeded the amount
originally stated in such petition as the anticipated costs of providing such
services, the city council may, by resolution, amend the approved petition to set
32
forth the correct cost. The city council's determination of such actual cost shall be
deemed conclusive. Upon amendment as provided by this section, the petition
shall be deemed effective as if originally submitted with the amended cost set
forth therein. The city council may provide for payment of any such increased
amended cost, by increasing the amounts of any unpaid installments due under
the original approved petition. A copy of any resolution enacted pursuant to this
subsection shall be mailed or personally delivered to the owner or owners of
such property at their last known address.
(7) Any petition approved by the city council and any amendment thereof shall
be filed in the office of the city clerk. The city clerk shall forward a copy of any
such petition or amendment to the collector of revenue. The collector of revenue
shall maintain a record of such approved petitions and amendments thereof and
such records shall be available to public view during regular business hours.
(8) If the actual cost of providing the services requested in any approved
petition shall be less than the costs set forth in such petition as anticipated costs,
the city council may order such excess deposited in the water and sewer fund of
the city for the use of the city or may order such excess paid to the owner or
owners of the property set forth in such petition as their respective interests may
appear; provided, however, any anticipated cost set forth in the approved petition
which shall have been determined under any schedule of charges approved by
the city council shall, for the purpose of this section, be deemed the actual cost of
providing such service.
(9) The city council may delegate authority to the city manager or designee of
the city manager to approve or deny any petition submitted pursuant to this
section, and to take any other actions which the city council is authorized to take
pursuant to this section, all without the necessity of further action by the city
council.
(Laws 1993, Ch. 297, § 1)
RESOLUTION ADOPTING ASSESSMENT POLICY APPLICABLE TO
WATER AND SEWER EXTENSIONS TO .EXLSTING UNSERVED NEIGHBORHOODS
Wl-IERE.AS, the elected bodies of the Towns of Carrboro and Chapel Hill and Qrange
County-have requested that OWASA review its assessmeutpolicies in order to assure that the
manner in which the costs ofwater and sewer extea~sion prajeds are calculated and assessed is fair
and meets the requirements of'the statutes and OWASA's obligations under the~Sale and Purchase
Agreements, and; in particular, that it does not impair the orderly availability or unduly discourage
otherwise necessary connections to these vital public services; and
WHEREAS, the Board of Itir~tors of OWASA ,has considered. the opinions, requests acid
proposals made by citizens in recent public meetings about the costs of gaining. access to these
public.services; it has reviewed the work of its staff and has.considered the suggestions of the
elected bodies' of the Towns and County, and the advice given. on. behalf of the University of North
Carc~l%rra at Chapel ITill in: this regard, and it has determined that the attached policy is necessary
and appropriate to assure the availability and orderly provision of public water and sewer service to
the Carrboro, Chapel Hill, and Orange County citizens within its service area, and that it is
necessary.and will tersult iri the protcction of the environment and .public water supply, and that it
will primarily benefit persons who are able to connect to these services as well as their neighbors
and the public at large; -
NOW, TIiEREFORE,, BE TT RESOLVED:
1. That the Orange Water and Sewer Authority Board of Directors adopts the attached
policy entitled, "Assessment Policy Applicable To Water .And Sewer Extensions To Ezisttng
Unnerved 1eighborhoods".
2. That the policy shall become effective upon.adoption.
3. That the Executive Director is directed to implement and interpret the Assessment
Policy Applicable To Water And Sewer Extensions To Existing Unnerved Neighborhoods.
Adopted this 27''' day of May, 1999
-1- ''~.t
Dan C. VanderMeer, Chair
ATTEST:
~~
.T i Gi lgor
erk .to the Board
~~
ORANGE WATER AND SEWER AUTIiO,F:ITY
ASSESSIviENT POLICY APPLICABLE TO WATER AND SEWER
EJ~:TT;NSIONS TO EXISTING UNSERVF.,D NEIGHBORHOODS
PURPOSE: The purpose of this policy is to set forth the principles and guidelines .for the
extension of and the allocation of cost for the water and/or sewer mains of the Orange Water and
Sewer Authority (OWASA) when such facilities are extended through the assessment process.
BACKGROUND: An integral part of the operation of OWASA is the orderly extension of water
and/or sewer service from its existing facilities or the construction of new facilities. This extension
of service may consist of the construction of new coIlectors, interceptors, mains, Pump stations and
other appurtenances necessary to serve a ~ group of properties whose owners have petitioned
OWASA for service and have agreed to assume the cost of the water and/or sewer extension or to
serve properties without a petition from property ~ owners that OWASA has determined are
benefited by the extensions. The North Carolina Gener,~l Statutes and the Sale and Purchase
Agreements with Town of Chapel Hill, Town of Carrboro and The University of North Carolina at
Chapel Hill enable OWASA to make such extensions and assess benefited properties the costs
assoctiated with the extensions.
POLICY: OWASA, at the discretion of the .Board of Directors, may arrange for the installation of
water.and/or sewer mains to serve existing developed areas. and assess. the cost of the improvements
to the benefited ,properties in accordance with the Nortli`~Cardlina Geiaeral Statutes. Extension to
new development will not be financed through .the assessment process. Lf undeveloped land within
an• asses-smeut. area benefits fivm an assessmeut.project'then sack larid_ wr71 'be assessed for the
improvements. Undeveloped landthznugh~or along construction ofoff-site line extensions may also
be assessed.
Assessment projects must have prior approval of the OWASA Board of Directors and may be
initiated by petition of residential property owners., County or State public health agencies, by.a
County or .municipality, or by OWASA at its discretion. OWASA's decision to undertake an
assessment projed shall not be subject to prior endorsement from a majority of the property owners
benefiting from said project In determining whether or not to proceed with an assessment project,
OWASA will consider the needs of all property owners who are impacted by such project Multiple
assessment project requests will be prioritized for constniction by OWASA
Extension of service shall be made in a manner to appropriately serve individual properties and to
allow for the future orderly development of the water and/or sewer system to serve other properties.
Water and/or sewer main. extensions and appurtenant facilities installed by OWASA through the
assessment process shall be financed by the owners of the benefited properties through (1) special
assessments made in accordance with the provisions of the North Carolina statutes and laws; (2)
prior funding of the improvements; and/or (3) other financial arrangements satisfactory to OWASA
The cost of the assessment project, as determined by OWASA; shall be specially assessed against
each of the lots ar parcels deietmuied by OWASA as benefiting from the project and set out in a
Feral Assessment Roll. Such allocation of cost shall be in accordance with the provisions of North
~~
Assessment Policy Applicable to Water and Sewer
Extensions to Existing Unnerved Neighborhoods
May 27, 1999
Page 2
Carolina General Statutes 153A, Article 9, Special Assessments.
Costs recovered through assessments shall not include the engineering design and construction
observation expenses in an amount up to 1~5% of total expenditures for a given project Costs
recovered through assessments shall not include the legal expenses in an amount up to 5% of total
expenditures for a.given project. Any suchengineering design and observation costs in excess of
15%. and/or legal costs in excess of 5°1o will be included in• the summation of costs to be assessed.
Costs recovered through assessments shall not include off-site costs, including. an~ easement
acquisitions of intervening improvements required to connect assessment projects situated within
the incorporated limits of Chapel Hill and Carrboro when the OWASA Board of Directors
determines that (a) the off site improvements are.assessed to intervening benefitted properties; or,
the cost of the off site improvetneuts are •reasonably anticipated ~to be recovered within the next 10
year ~~period through fees from service .connections or ~extensitons to the proximate intervening.
properties; and (b) the costs of the off-site improvements that are not ~ assessed' are in reasonable
relationship to the costs of the assessment project and funding is available in the approved Capital
Improvements Budget for..such.off-site eost,~or.~imds~are.~reliably available from otliet sources such
as grouts, subsidies or contn`butions in aid of construction from private or public •parties.
The exclusion of off-site costs for assessment projects situated outside of incorporated areas but
within the Urban Service Areas of Chapel Hill and Carrbom shall be determined by the OWASA
Board of Directors for each such project
Exclusion of off-site costs shall not apply to assessment projects situated outside •the~ Urban Service
Area of Chapel Hill and Caribom.
Off-site mains shall be defined as those sections of mains installed outside of the benefited project
area which do not provide service directly to individual lots within the benefited area and are of a
size so as to provide service to areas other than that defined by the assessment project resolution_
Upon completion of the project, property owners will be notified and a Final Assessment Roll
adopted. Liens against the property will be recorded as security for the amount of the assessment.
Assessments may be paid without interest at any tune before the expiration of thirty (30j days from
the date that notice of confirmation of the Final Assessment Roll is published_ If the assessments
are not paid within this time, all installments shall bear interest at a rate set by the OWASA Board
of Directors in the assessment proceedings until paid. hi the event one or more payments of the
assessment against a parcel of property are not made in~ accordance with the teems for such
payment, OWASA will take action under the lien to collect the money due.
For assessment projects, the property owner corinecting within sixty (60) days of the confirmation
Assessment Policy Applicable to Water and Sewer
Extensions to Existing Unnerved Neighborhoods
May 27, 1999
Page 3
~~
of the Final Assessment Roll may enter into a contract with OWASA to pay service availability fees
for connections to lines extended by an assessment project, but not service connection fees, under
established terms and conditions by monthly installments over the same time period and at the same
interest rate as established for the assessment project costs. The installment payment of service
availability fees shall become a part of the monthly billing .for service, and nonpayment shall be
subject to the same policies and penalties that apply to delinquency in the payment of .monthly
charges for water and sewer services provided by OWASA. The unpaid balance shall be secured by
a lien against the benefited property and personal security to satisfy any outstanding balance upon
sale of the property. The payment of the unpaid balance shall become due upon transfer of the
property.
For assessment projects, the residential property owners connecting within ninety (90) days of
notice from OWASA that the construction has been completed and service is available for active
service connections, the service availability fees applicable to the property will be reduced by 25%,
not to exceed $500 per benefited property.'
if an assessed lot is subdivided at any time after adoption of the Final Assessment Roll, the newly
created lots shall be required to pay all applicable availability fees in accordance with the Schedule
of Rates and Fees in effect at the tune, prior to establishing a service connection to the system(s)
owned by OWASA..
REFERENCES:
- OWASA Schedule of Rates and Fees
- OWASA Water and Sewer Extension Policies
Reviewed by General Counsel: (v -' 3
Date Gen Co 1 ~--
Adopted by the Board: ~~~
Date Jerk to the Bo
~~ .
Fact Sheet on Special Assessments
Bases for makingassessments .
For water and sewer projects, assessments may be made on the basis of:
1.). The frontage abutting on the: project, at an.equal rate per foot of frontage; or
2:) The street frontage of the lots served, or subject to being served, by,the project,
at an equal rate per foot of frontage; or
3.) The area of land served, or subject to being served, by the project, at an equal
rate per unit of area; or
4.) The, valuation of land served, or subject to being senved, by the project being the
value of the land without improvements as shown on the tax records of the
county, at ari equal rate per,dollar of valuation; or
5.) The number of lots served, or subject to being served, by~the project when the
project involves extension of an existing system to a residential oc commercial
. subdivision; at an equal rate per lot; or .
6.) A combination of two or more of these bases. ,
If either area or valuation is chosen as a basis for assessment, the BOC shall lay out
one or more benefit zones according to the distance of property from the project
being undertaken. If more than one benefit zone is esfabtished, the BOC shall
establish differing rates of assessment to apply uniformly throughout each benefit
zone.
Lands exempt from assessment
No land within a county is exempt from special assessments except
. 1.) land belonging to the United States that is exempt under the provisions of
. federal statutes and land within any floodway delineated by a local
.government, or
2.) land owned, leased, or controlled by a railroad company, except that if there
is a building on the land, the.portion of railroad properly subject to
assessment shall be a lot whose frontage equals .the actual front footage
occupied by the building plus 25 feet on each side thereof, but not more than
the amount of land owned, leased or controlled by the railroad. If a building is
placed on land that would have been subject to assessment after the water or
sewer project has been completed, then the.railroad company shall be
subject to an assessment without interest on the same basis as if the building
had been on the property when the improvement was made.
If the project would benefit property owned by the State, or an agency, board,
commission or institution of the State, the County may request that the Council of State
authorize the State to pay its part of the assessment. The Council of State may
authorize the Secretary of Administration to approve, or disapprove requests from
counties for payment, but the County may appeal to the Council of State if the Secretary
disapproves. If the Council of State does not authorize the payments of the
assessment, then the State is exempt from payment.
10
~~
Determination of Projects Costs
The BOC may include in the determination of the cosfi of the project
• Construction costs (including engineering and construction administration
services)
• Cost of necessary legal services,
® The amount of interest paid during construction;
• The cost of rights-of--way, and
• The cost of publishing and mailing,notices and resolutions.,
11
3~
Illustration Assessment Roll for Buckhorn Water Proiect
Properties on Buckhom Road and North of West Ten Road
Total Water L ine Cost: $ . 718,711.00
tai;ds~sessmcnE based or,~~1 w~~. `~,• ~~ ~~;~, ~;~;
il
'
~i
'
Y
~
°
% bf Total i
L:tifYIC-hL
t
u
Y:i~Rt".2i::lY~?1.~e9
.i
_ l~l~'dfN9V~ ~ ~
~r py .a; y ,r {°~ -1~ r ~ ~ 4__+x,'4 "~'~1£~
Fronts a °k of Total ~ ~ ""' g~"^~ ~~s x50/5d "~ °:~ ~a9t~;;~k~=.
Lot Area ~ of Total
a
e
l
V wn rxryrg" .. +~Yt3F3FT; rf~;? a`'r
~~~ ?i'ot'a~lyal~ ~€S¢e!S/.a ~ ^~ ~S.S ~, tt
feet Fronts a Area~'
Number acres Area lue
Total V a
u
31%
6 ,
~2 3t. ~~~9••0~65~23~'
rsr3 ,?~;g~ ~~,.-5•..: 8
1
69% ~~'
~
~61~~~
2709 21
1 106.4 26.66% $ 2,086,560.00 .
2 ~n
~
.
.
r
.
,,>~ ..: ~
~' ~; ~F~. ~ ~$ ~' • 3D9r3~5~ t~L4~'9~6'.1~9~5,~,'
~sa.: ,a<
sk
'~$
~ ~~.
~~:
,~
OD%~~~O~
749 6
2 34.2 8.40% $ 377,586.00 4.76%
66%
5
' ,
~,.. w,~yy
,
.
,
ti
.
f ~,~~:-~ ~ ~~+ g~1fi ti+r~ 2
17% '08 ;6• ~ X54'8 61 $' ~ A~647~ ~ ~ ''689.0 st
~rt~ marrra~m~ Nai~~s..daix'~%.
~
~°
~
~
1020 8
~
c
3 61.5 15.73% $ 1,242,106.00 .
1
% ' .
y
, ,
,
,,
y.
..
L
'i ~~4 '~ } ~~asr?'r~ ~•
30%
287 2
"-n
G
t
'
~
°~9~°
4 14.1 3.46% $ 117,229.00 1.48
87%
1 .
io
.w
i
m
~l
x
~
~ Psa~l~n ~ ~~ 7R~ ~ ' ~~ 0•, '
p
~
292 2
34% 4~
~~
5 14.0 3.44% $ 14$,313.00 .
64% .
,.
a
9T~-6 Dg1~1~53~~9~~ 77~ar;8~,
8
° ~' e 2 1 n
~ ,~.~~r~'
~~~a~
~}
j~
_
~
~ ~
$~i
72/0
1339 10
G''-
6 66.4 16.34°/a $ 923,273.00 11.
75% ,
,
~
~• s„
...
c,u
,
.
~
y
75% ~gj~fi ~tSS~'r2^~~~ $ ,,,~ .,~~~-' ~,~~
593 4
.7 28.1 6.90% $ 614,520.00 7.
03 .
~'Sa~61X ~~ 9` 6 ,~T, _49 : g~~
72/0 6~~ 9 ~ --uwu
715 5
°'~
~~~ ~f~1
$ 35.1 8.64% $ 398,576.00 %
5.
43% .
r
..~
~~~ ~ s, 3'0 _ $ '~ q~~t 6.98
~ls~Q.~
2
,
a
~
~:.~K
94% ~
'~"` ,~~`r;~,.
117 0
~~~~:~i
~
~
9 . 2.1 0.52% $ 33,964.00 0. ,
.
,
i
„~.:
i
/
~
!
,,
k
9 ~52T : ' 3,
~ ~23.
F I.uIroCU(Sssaavr.
9B
~~ ~~a?
91 /
8 1
~~'
'
g~
~
°
~
10~ 1.0 0.25% $ 60,924.00 0.77%
3% ~
.
.
o ~
.
bn~s
~•
~
23
. 5
. m>or
x.
42% ~~~8~9 s~~ ~y$Fy ~ ~-r~'S' ~ ~*' j,97y8~6D ~~,01&~28~'
177 1
11 0.5 0.12% $ 33,964:00 0.4
3/ .
91% ~' `` '~ ~+ -~~~-t-'
238 1
12 1.0 0.25/0 $ 65,921.00 0.8
0 .
~, 3~9~
-~ ~~~~597,
~0~`
}~i
t ~$~~
$
61% wy SD1
76 0
13 0.6 0.14% $ 13,352.00 0.17% ,
.
.
.
.
,
+
~~
; 'ti91~~` ~~~~riny~ ~'°~.'' >59P
185 1
48% ~~~~
~
14 1:1 0.28% $ 18,668.00 0.24%
0
1T% ~
.
~
r ~~ u t ~~~'`~6t32& ~~~~~ 680 B0~
in ~•_ s .~•_u
~9 :~. _ ~ .~+
„
65% ~~~~2~~8' 4~ '
h'
81 0
15 ' 0.6 0.14% $ 13,352.00 .
15% ,,
.
.
an'ra ffrxr~ .a1- '+TI ie4'°' f'I~i ~cS~ ~~~~~~9
~
p
~~ ~ •- $ 9`i~6. ~~, n~.w,+
125 1
00% ~ ~~
8
~ ~
16 5.5 1.35% $ 90,914.00 1.
9% .
...:n
.
v
.~+ ~' ~
55% ~~~~~~~ :a
~g~
' - ° '+ ~~~ 7r'~~
69 0
17 0.5 0.13% $ 78,278.00 0.9
3% .
.
,
90 /a ¢ '~~ '
112 0
q $ 2.9 0.70%
% $ 65,483.00 0.8
25%
0 .
4 leh.
3~ $ A
~~~~ ~~~~~
92% ~~~ ~,0 D ~B, 0
x ~~~~
115 0
1 g p,7 0.18 $ 19,865.00 .
08%
0 _
.
s
~~`~.~ .~ra'~ag ~~ 5~i
63% ~~~~ ~
?9 0
20 0.5 0.13% $ 6,590.00 .
61%
0 ,,° ,
.
`~T ~~~8~ ,4D~,~ ~ ~ „ ~~ ~~ ' g
49% `$°
61 0
21. 0.4 0.11% $ 48,573.00 .
° ,
.
~~ ~~~i ~7
52% z ~ $ ~,~ f
~;~~
65 0
22 0.5 0.12% $ $2,147.00 1.04
(0
3
% t
.
L,
~
~~.n~+n1~~9~
~ F~~~~~
50% ~~~ ~ ~~( ~~2~ ys
63 0
23 1.5 0.38% $ 25,;106.00 0.
2
77% ,
.
~
p
~ 5_ ' ~~~'~2 ~'~3?Y!I
$2% ~~~~~
103 0
24 0.5 0.13°l0 $ 61,223.00 0. .
}~~
t~97 iF .3; 9~9,
1 •'~~~~6
52% '
0
25 0.3 0.08% $ 70,262.00 0.89%
7 .
x~
65•
~~~~ rs~`saa~~
40%
~
~~~
`
~ ~~~ ~~~
o'""
675 ' 5
~~
Z6 8.3 2.04% $ 148,590.00 %
1.8 .
,
,,
,
r
,
mo
r,~c~~ ~~ >~' ~, y ,
~!S~' r~ P~ ..r~ a~%gw~a.~
96%'
245 1
~~~ ~~ ~~IX~ ~~~
27 •6.3 1.56% $ 180,627.00 2.28%
0
38% ~
.
"
~I~8:9D ~~~~ ~~5~ 115 ~~~6>
'~~
19% ~$
273 2
28 1.8 0.43% $ 29,922.00 .
81% ~
•
.
75% ~ ~ 6 ~ $
218 1
29 1.0 0.24% $ 743,734.00 1.
78°l
1 ~,~ ,~
.
~~~7.~ry~~~{~), -+ y~~~j~yyp(~ ~,,
' 4NmC ~~ F:ryz.~PWn{IVUB~
92%~$ ~ 0' R $J125D' r ~ 5
240 1
~~
1
~'
3D 0.9 0.22% $ 141,349.00 . F ~ rs-' ~~~~•
.
1~3AG0
Af1
, R 1. nTlil.^1
0
., ~~i~96't89
~~7~~' - '~~-~
~'
- ~1 ~}8r1
96% ~~~ 6~
245 1
31 0.9 0.23% $ 130,027.00 1.64% ~
,
,
~~
.
75%
~
~
~ 5~~ ~~
t~
~~•~' ' ~I
18 1
32 0.9 0.23% $ 158,730.00 2.00%
9$%
2 5
,,,
~
.
+>u
N
2
~jq~~ n ~ ~rs~m ~, ~,. ,.~;
$
X26
10 /o Ruu ~' S 42~ ~ $ ~ 1 0 e $ .`=13~'~~`i~;~~• ~$'
~G~~~ ~iv>~e+.~•x0 a.~~i:rs~nr!
387 3
~'1~
+
° ~~~
~
33 3.1 0.75% . $ 236,297.00 .
0
42 ` r
.
r.
f
-~~..m.~smit~•
a
r
87% e~-~6~9$~;. ~'$~~995F~~68~~i P,*~~2~~~
% 109 ' ' 0
0.4 0.10% $ 33,103.00 . .
}wn ~
'`=~ ~KZ~
Yti1`I $?~+~.~~1, ~967i97~
o ~+~•
2~ $~ 9~ l~ ~~~~ ~ ~
1
~
67 /
1
~
x
35 0.8 0.20% $ 32,682.00 0.41 ,
.~c3i
..
.
o
,~~
.
.. ~ uc x~
% 208
rt
nu
711.00
00 $718
711
00 $718
Totats: 406. 5 100.00% $ 7,931,832.00 100.00% 12491 ,
.
,
100.00% $718,711.00 $718,711.
~V
Summary of.the Administrative Process for VYater and_Sewer
Assessment Projects
1. When the Board of Commissioners (BOC) decides to finance all or part of a
project by special assessment, it must adopt a Preliminary Assessment
Resolution which contains the following information:
a.) A statement of intent to undertake the project; .
b.) A general description of the nature and location of the project;
c.) A statement as to the proposed basis for making assessments. Several
bases for assessment are allowed by General Statute (GS)153A-186.
These available bases will be listed on the "Facts Sheet" following this
Summary. If the basis of assessment is either area or valuation, the
Board shall include a general description of the boundaries of the area
benefited;
d.) The percentage of the cost of the work that is to be specially assessed.
The BOC can choose to finance the full cost or any portion of the full cost
of the project through special assessment;
e.) Which, if any, assessments shall be held in abeyance and for how long.
The BOC has the authority to,hold assessments in abeyance. Water or
sewer assessments may be held in abeyance until improvements on the
.assessed property are connected to the water or sewer system for which
the assessment~was made, or until a date certain not more than 10 years
from the date of confirmation of the assessment roll, whichever event
occurs first; ~ ~ •
f.) .The proposed terms of payment of the assessment and ~ .
g.) An order setting a time and place for a public hearing on all matters
covered by the preliminary assessment resolution. The hearing shall be
not earlier than three weeks and not later than 10 weeks from the day on
which the preliminary resolution is adopted.
2. At least ten days before the date set for the public hearing, the BOC shall publish
a notice that a preliminary assessment~resolution has been adopted and that a
public hearing on it will be held. The notice should generally describe the nature
and location of the improvement. ~ .
3. Also, at least ten days before the date set for:the public hearing, .the BOC shall
cause a copy of the preliminary assessment resolution to be mailed by first-class
mail to each owner of property subject to assessment. .
6
~i
Depending 'on the assessment .calculation strategy, the assessment area; and. decisions
the County.makos relative to providing relief.to low wealth individuals, it appears that a
utility assessment could recover approximately one-half of the Buckhom EDD/Gravelly
Hill IUliddle School utility extension project costs.
If I may provide additional information.on:this issue or clarification of the information
provided herein, please advise. ,..
5
~a
4: Following the public hearing, the BOC may adopt a Final Assessment
Resolution. This assessment shall generally describe the nature of the project
and the boundary of the assessed area. In addition,.tiie percentage of the cost
of the project to be specially assessed and the terms of payment should be set
forth; including any conditions under which assessments might be held in
abeyance. ~.
NOTE: If the BOC decides that the percentage of the project assessed should
be different than the percentage set forth. in the preliminary assessment
. ~ resolution, or that the scope of .the project should be greater in scope than
, that.described in the preliminary resolution, then a new preliminary
assessment resolution shall be adopted.and advertised as described in steps
1=4 above. ~ ~ ~ ~. -
.. .
5. When the BOC has determined~the total cost of the project, a preliminary .
assessment roll shall ~C~e prepared. This roll should include a brief description of
each lot of parcel to be asse"ssed, along with the basis for the assessment, the
. amount assessed~against each, the terms,of payment and the name of the
owner.
6: This roll should be~filed~in the clerk's office and be made available for public
. inspection. The BOC shall schedule a time and place for a public hearing on
the roll.
7. At least.l0 days before the date of the hearing, the BOC shall publish a notice
that the preliminary assessment roll has been completed. The' notice shall
describe the project, note that the. preliminary roll is available for inspection in'
the clerk's office; and give the date and time of the Bearing on the roll.
8. ~ ~ Also; at least ten days before the date set for the public hearing, the BOC shall
cause a copy of the~preliminary assessment roll to be mailed by first class mail
to each owner of property listed on the roll. The mailed notice should include
information about the hearing on the. roll and note that the roll is available for .
public inspection at the clerk's office.
9. After the hearing, the BOC shall either confirm .the preliminary assessment roll,
or; based on information brought forth in the hearing, shall modify the
preliminary assessment roll as may be proper in compliance with the basis of
the assessment. Once the assessment roll has been confirmed, each .
assessment is a lien on the properly assessed of the same nature and to the
same extent as the lien for county or city property taxes.
7
~~
10. No earlier than~20 days from the date the assessment roll is confirmed; the
• county tax collector shall publish.once a notice that the• roll has been confirmed.
The notice shall also state that assessments may be paid without interest at
any time before the expiration of 30 days from the date that the notice. is
published and that if they are not paid within this time, all installments~thereof
shall bear interest as determined by the BOC (not to exceed 8% per annumj.
11. Once the assessment roll has been confirmed; an owner may appeal the
amount of the assessment, but not the assessment .itself. An appeal must be
made within 10 days of the confirmation of the assessment roll. The appeal is
made to the appropriate division of the General Court of Justice. The owner
will then have 20 days from the date the assessment roll is confirmed to
present the BOC or clerk a statement of facts upon which the appeal is based:
The appeal shall be tried like other actions at law.
12. Within 30 days after the day that. notice of confirmation of the assessment roll is
published, each owner of assessed property shall, pay his assessment in full,
unless the BOC has provided that assessments may be paid in annual
installments. If payment by installments is perrriitted, any portion of an
assessment not paid within the 30-day period shall be paid in annual
• ~iristallments: The BOC shall.in the assessment resolution determine whether
• payment may be made by annual. installments and set the number of
installments, which may not be more than 10. With respect to payment by
installment, the board may provide
.a.) That the frst installmentwith interest is due on the date when property
taxes are due, and one•installmentroith interest is due on the same date in
each successive year until the assessment is paid in full, or
b.) That the first installment with interest is due 60 days after the date that the
assessment roll is confirmed, and one installment with interest is due on
that same day in each successive year until the assessment•is paid in full.
13: If an installment is not paid on or before the d.ue~.date, all of the installments
remaining unpaid immediately become due, unless the BOC.waives
acceleration. The board may waive acceleration. and permit the property owner
to pay all installments in arrears together with interest due thereon and the cost
to the county of attempting to obtain payment. If this is done, any remaining
installments shall be reinstated so thatthey.fall due as if there had been no
default. The board may waive acceleration and reinstate further installments at
any time~before foreclosure proceedings have been instituted.
8
~~
14. The.B~C may foreclose assessment liens under any procedure provided by
law for the foreclosure of'property tax,liens, except that lien sales and lien sale
certificates are not required and foreclosure may be begun at any time after 30
days after the due~.date. The County is not entitled to a deficiency judgment in
an action to foreclose an assessment lien. The lien of special assessments is
inferior to all prior and subsequent liens for State, local and federal taxes, and
superior to all other liens.
15. There is~a 10 year time limit to begin foreclosure proceedings, starting from the
due date of the earliest installment included in the foreclosure action.
Acceleration of installments does not have the effect of shortening~the time
within which foreclosure may be begun; in that event the statute of limitations
continues to run as to each installment as.if acceleration. had not occurred.
9
~~
Timeline for a llfiility Assessmenfi Proiecfi
This timeline is meant to show fihe minimum time required for the assessment process,
according to the North Carolina General Statutes 153A-185 to 153A-205. The start date
for the process will be u0" and subsequent~steps in the process will be labeled "0 + n
weeks" to show the total elapsed time from the start date.
Time Descripfiion of Acfiivifiy
0 weeks Adopt a Preliminary.Assessment Resolution (PAR)
0 + 1 week Publish a~~notice that a PAR has been adopted and that a public
hearing of the PAR will be held. •
Mail a copy of the PAR to each owner of property subject to
assessment. .
0 + 3 weeks Public hearing of the PAR is held. Following the public hearing, the
Final Assessment Resolution may, be adopted.
NOTE: Once the final costs of the project are known, the
procedure may continue..There is a possibility that the final cost of
the project will be known by the time the Final Assessment
Resolution is adopted. This would represenfi the minimum time
frame possible; so the timeline will assume that the costs are
known and no time will elapse for this step.
0 + 3 weeks ~ Prepare a preliminary assessment roll and determine a time and
place for a public hearing on the roll.
0 + 5 weeks Publish notice of the public hearing on the preliminary assessment
roll.
Mail a copy of the preliminary assessment roll and notice of the
hearing to each owner of property listed on the roll.
0 + 7 weeks Public hearing of the preliminary assessment roll is held.
The preliminary assessment roll is either confirmed or modified
based on information obtained in the hearing and in compliance
with the bases set forth in the roll.
0 + 10 weeks • County Tax Collector shall publish a notice that the roll has been.
confirmed. The notice shall also give details on how to go about
• paying the assessment.
0 + ~12 weeks Owners may appeal the amount of the assessment.
12
4,
0 + 14 weeks ` ~ Owners present a statement of facts upon which the appeal is'
based to the Board of County Commissioners (BOCC) or the .Clerk.
Owners of assessed property must make pay the full amount of the
assessment unless the BOCC has provisions in the. assessment
resolution to allow annual installment payments. .
13