Special Assessment Districts

PROJECT BACKGROUND:

Special Assessments are a core part of the development finance toolbox. Several variations of special assessment district financing exist and every state offers at least one type of Special Assessment financing to its communities.

The City's SAD program, through cost sharing efforts with residents, allows the City to stretch our available dollars further. Shortens our road rehabilitation timeline.  The maximum project split is 50/50, City and residents, however no one parcel shall be assessed any more than $5,000. At the conclusion of the project should actual construction costs be calculated less than $5,000 per parcel, the lower amount will be assessed.

Residents can be paid in one lump sum or financed through the City for a 10 year period with a 6% simple interest loan. The balance can be paid at any time within the 10 years. $5,000 original assessment would cost $6,350 at the end of 10 year (6% simple interest). Any SAD balances will show as a lien on the parcel and must be paid prior to selling the property.

What it will do for residents: 

Improve current road system in your area. Less wear and tear on your car. Improve curb appeal of your home. Reduce city maintenance budgets allowing funds to be allocated for additional street construction.

What it wont do for residents:

Will not cause your property taxes to increase.  Will not add sidewalks to the area if none exist, except as needed for ADA compliance at intersections. Will not replace the water or sewer lines for individual properties.

Special Assessment District Project 2022-05:

URAN STREET AREA 

The total estimated cost for this project is $320,000 with $284,300 being paid by the City and $35,700 being assessed to property owners. The project cost split is in accordance with the City’s Policy on Special Assessment Districts for Street Projects presented to the City Council at their February 1, 2021 meeting. It is important to note that the total assessed cost to the affected property owners will not go above the policy maximum assessment limit of $5,000 per parcel or 25% of the property value per Hillsdale Ordinance Chapter 2, Article V, Section 2-335, whichever is the lesser amount. 

Special Assessment District Project 2022-06:

MORRY STREET, EAST & WEST LYNWOOD BOULEVARD AND SOUTH HOWELL STREET AREA

The total estimated cost of the Morry Street project is $230,000 with $212,800 being paid by the City and $17,200 being assessed to property owners.
The total estimated cost of the E & W Lynwood Boulevard project is $390,000 with $226,850 being paid by the City and $163,150 being assessed to property owners.
The total estimated cost of the South Howell Street project is $460,000 with $363,050 being paid by the City and $96,950 being assessed to property owners.

It is important to note that the total assessed cost to the affected property owners will not go above the policy maximum assessment limit of $5,000 per parcel or 25% of the property value per Hillsdale Ordinance Chapter 2, Article V, Section 2-335, whichever is the lesser amount. 

Special Assessment District Project 2023-07:

WESTWOOD AREA

The Westwood Area Special Assessment District (SAD# 22-07) includes the full extents of Westwood Drive, Sumac Drive, Picardy Place, Azalea Court, Corona Circle, Scenic Drive and Cold Springs Circle in addition to Westwood Street from Cold Springs Circle to Lewis Street and Highland and Glendale Avenues from Westwood Street to Bacon Street. The total estimated cost for this project, including utility work, is $5,852,465 with the Special Assessment portion of the work for street reconstruction and storm sewer estimated at $2,681,664.  City Funds will cover an estimated amount of $2,260,914 (84%) of the eligible project costs with approximately $420,750 (16%) being covered through special assessment to the 89 parcels currently identified in the Special Assessment District (SAD). 

The project cost split is in accordance with the City’s Policy on Special Assessment Districts for Street Projects presented to the City Council at their February 1, 2021 meeting.  It is important to note that the total assessed cost to the affected property owners will not go above the policy maximum assessment limit of $5,000 per parcel or 25% of the property value per Hillsdale Ordinance Chapter 2, Article V, Section 2-335, whichever is the lesser amount.