Special Assessments

Many counties seek to augment their infrastructure with procedures that result in direct re-payment of the project by the benefited properties. This self-help method of construction has provided utilities or other public works projects for many counties and cities. They may be used for beach erosion projects, watershed improvement and drainage projects, limited subdivision street improvement and street lighting. Cities may use special assessments for curbing, guttering and sidewalks. It appears that water and sewer authorities, metropolitan water districts, metropolitan sewerage districts, and County water and sewer districts may utilize the process by cooperation with a county or city government.

This writing is a general outline of the process, and records some observations of living through that process. More thorough involvement is required to undertake such a process. The first piece of really practical advice is to make peace, or even better, to become friends with your local General Assembly delegation. This effort will generally assist you in your work with local governments, and may be vital to the success of a special assessment.

Discuss thoroughly with the governing board the particulars of a special assessment. It appears that local governments may start a project and then “switch” it to a special assessment. This may well result in a lack of recovery of the costs incurred prior to the commencement of the special assessment, but appears to be contemplated in NCGS 153A- 190. Likewise, in the one appellate case involving special assessments, the opposite occurred—a special assessment was started and then abandoned. As the preliminary assessment resolution is required to state the intent to undertake the project, the local government would be hard-pressed to state its intentions for something that it has already done. For the portion of the project financed by the special assessment, the benefited properties are entitled to notice of that intention.

Make sure that your engineers and “utilitarians” closely and accurately define the benefited properties. Statutorily, a general description of the project will comply. It is worth the extra effort on your behalf to pinpoint the benefited properties. Consequently, there will be fewer issues when notifying of the hearings and delivery of the assessment resolutions. Definition of the area to be benefited may be by map, but a method of designating the area by parcel numbers is preferable to your work as the notification process provides for inclusion.

I recommend a regular meeting schedule for the special assessment team working in your jurisdiction. This should include representatives from the finance office, the tax office, the engineering office, the utility office (including billing), your office and probably someone from GIS or its equivalent. The specifications for public hearing are spelled out in the statute and are straightforward. Advertisement requirements are explicit. Since public hearings are usually question sessions, it would be beneficial to have knowledgeable representatives present to help. Maps of the area posted around the room are recommended. The attendees are usually preoccupied with concerns about the costs. Explaining that the total cost will determine the amount of the assessment is usually unhelpful, and over-estimated predictions may be beneficial, even though they pose a risk at the hearing. I advise that you make clear at the hearings that ALL costs will be included (easements, interest, etc.), so as not to cause a mild uproar when those items are published by those persons in opposition of the project. Take names of all that speak. Make sure that the Clerk takes down the TIME of the adoption of the assessment resolution. The lien attaches as of that moment.

Make provisions for installment financing as early as it appears that that method of repayment will be available. Make sure that the tax collector knows that assessments may not bear the same interest as a delinquent tax, even if maximized, so that can be provided for in the dispatch of bills. Also keep in mind that the priority of a special assessment is behind that of the ad valorem tax lien. This may matter if there are municipal tax liens outstanding.