Sacramento Municipal Code Art. II Procedures for Formation of Assessment District for Maintenance Services

In forming an assessment district pursuant to this chapter, the city council, city clerk and city manager shall employ the report preparation, notice, protest, hearing and balloting procedures specified in Article XIIID of the California Constitution and in Government Code Sections 53750 through 53753.5 and Division 4.5 (commencing with Section 3100) of the Streets and Highways Code, as those sections may be amended or renumbered. (Ord. 98-017 § 2; prior code § 81.02.200)

A. Prior to adoption by the city council of the resolution specified in subsection B of this section, the engineer shall file with the city clerk the map required by Streets and Highways Code Section 3110.

B. Whenever the city council determines to form an assessment district pursuant to this chapter, it shall adopt a resolution which:

1. States the intention of the city council to form an assessment district pursuant to this chapter, and assigns a distinctive name or number to the proposed district;

2. Generally describes the public improvements to be maintained, and the maintenance services to be provided by the district;

3. Describes the boundaries of the proposed district, which boundaries need not be contiguous; only land which is specially benefitted may be included within the district;

4. Directs the engineer to prepare, or cause to be prepared, and file an engineer's report as specified in this article. (Ord. 98-017 § 2; prior code § 81.02.201)

Pursuant to California Constitution, Article XIIID, Section 4, subsection (a), parcels within a proposed district which are owned or used by the city, any agency, the state of California or the United States shall not be exempt from assessment unless, based upon clear and convincing evidence, the city council finds and determines that those publicly owned parcels in fact receive no special benefit. (Ord. 98-017 § 2; prior code § 81.02.202)

At the direction of the city council, the engineer shall prepare a report for the proposed maintenance district. The report shall comply in all respects with the provisions of California Constitution Article XIIID, sections 4(a), (b) and (c). In addition thereto, the report shall include the following:

A. A description of the public improvements to be maintained. The description may be by reference to plans included in the report or filed with the report although separately bound;

B. An estimate of the total cost of maintaining the improvements during the present or forthcoming fiscal year;

C. A map or diagram prepared in accordance with the provisions of Streets and Highways Code Section 3110, showing:

1. The exterior boundaries of the proposed assessment district, and the boundaries of any zones within the district,

2. The lines and dimensions of each parcel of land within the district. Each subdivision, including each separate condominium interest as defined in Section 783 of the California Civil Code, shall be given a separate number upon the diagram. The diagram may refer to the county assessor's maps for a detailed description of the lines and dimensions of any parcels, in which case those maps shall govern for all details concerning the lines and dimensions of the parcels. Each parcel shown on the diagram shall be labeled with a distinctive assessment number, which may be the county assessor's parcel number. The lines and dimensions of each parcel shall conform to the county assessor's parcel maps; or the diagram may consist of a copy of the county assessor's parcel maps. The diagram may consist of one or more sheets, and may be included in the report or filed with the report although separately bound;

D. An assessment roll containing the assessment number of each parcel to be specially assessed, and the amount of each proposed assessment for the present or forthcoming fiscal year. If the county assessor's parcel number is not used as the assessment number, the assessment roll shall also contain the county assessor's parcel number, but only where in the judgment of the engineer the proposed district does not contain such a large number of parcels as to render this requirement infeasible or impractical;

E. A detailed explanation, in compliance with the requirements of Article XIIID, Sections 4(a), (b) and (c) of the California Constitution, of the method or formula by which the engineer proposes to divide the cost of maintenance among the parcels to be specially assessed. For this purpose, the district may be divided into subareas or zones of benefit, the boundaries of which shall be shown on the diagram;

F. A list of the names and addresses of all of the record owners of the parcels shown on the diagram and the assessment roll, as they appear on the last equalized secured property tax roll, or in the case of any agency, the state of California, or the United States, the representative of that public entity at the address of that entity known to the engineer. This information may be combined with that required under subsection D of this section. (Ord. 98-017 § 2; prior code § 81.02.203)

In accordance with the provisions of Government Code Section 53739, as that section may be amended or renumbered, the engineer's report may specify that the assessment is to be based upon a range of rates or amounts, and may further include an adjustment pursuant to a clearly identified formula set forth in the report. (Ord. 98-017 § 2; prior code § 81.02.204)

Upon completion, the engineer's report shall be filed with the city clerk for presentation to the city council. At the hearing for formation of the district, the city council may accept the report as submitted, modify the report and accept it as modified, or reject the report. (Ord. 98-017 § 2; prior code § 81.02.205)

Notice of hearing on the engineer's report and the proposed assessment shall be provided by mail to each record owner in accordance with the provisions of California Constitution Article XIIID, Sections 4(c), (d) and (e) and Government Code Section 53753, as that section may be amended or renumbered. The hearing shall be held not sooner than forty-five (45) days from the date that the notice was mailed in accordance with the said provisions.

The notice of hearing shall:

A. Include a statement of the total amount of the proposed assessment to be charged to the district, the amount chargeable to the record owner's parcel, the duration of the payments, the reason for the assessment and the basis upon which the amount of the proposed assessment was calculated;

B. Specify the date, time and location of the public hearing on the proposed assessment;

C. Include, in a conspicuous place, a summary of the procedures for the completion, return and tabulation of the assessment ballots required pursuant to subsection E of this section;

D. Include a statement that the assessment shall not be imposed if the ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment, with ballots weighted according to the proportional financial obligation of the affected property;

E. Include an assessment ballot that includes the city's address (including the site of the hearing) for receipt of the form and a place where the person returning the assessment ballot may indicate his or her name, a reasonable identification of the parcel, and his or her support or opposition to the proposed assessment. The city clerk may include an envelope for the return of the assessment ballot. Where appropriate, the ballot information may include a statement of the total number of ballots possible within the proposed district for purposes of weighting and counting of the ballots in accordance with the provisions of subsection (e) of Section 4 of Article XIIID of the California Constitution;

F. Indicate the date of passage of the resolution of intention, and state that the city council intends to levy an annual special assessment on each parcel of land within the proposed district to pay the cost of maintenance of the public improvements;

G. Generally describe the public improvements to be maintained, and the maintenance services to be provided by the district;

H. Describe the location and boundaries of the district;

I. State that the engineer's report is on file with the city clerk and is open to public inspection;

J. State that at the public hearing, the city council will hear all protests of record owners, and will accept testimony from any interested person, whether such person is an owner or not;

K. State the name and telephone number of the city employee or department where questions about the proposed district will be received. (Ord. 98-017 § 2; prior code § 81.02.206)

The following procedures shall apply to ballots mailed with the notice of hearing:

A. Each assessment ballot shall include the printed and/or typed name of the signing person, and shall be signed by the record owner or an authorized representative. The city clerk may employ reasonable procedures, including, but not limited to, those specified in Government Code Section 53753(e), as that section may be amended or renumbered, to establish the propriety of any signature or authority for signature.

B. Each assessment ballot shall be mailed or otherwise delivered to the address indicated on the assessment ballot.

C. Assessment ballots shall be received only at the address indicated on the assessment ballot, or at the site of the public hearing.

D. Ballots which are not signed, or which are otherwise defective, or which were not delivered to the proper location, shall not be included in the tabulation of a majority protest.

E. An assessment ballot may be submitted, changed, or withdrawn prior to the conclusion of the public testimony on the proposed assessment at the hearing. (Ord. 98-017 § 2; prior code § 81.02.207)

A. At the date, time and place stated in the notice of hearing mailed pursuant to Section 3.124.140 of this chapter, the city council shall conduct a public hearing upon the proposed assessment. At the public hearing, the city council shall consider all objections or protests, if any, to the proposed assessment. At the public hearing, any interested person shall be permitted to present written or oral testimony. The city council may continue the hearing from time to time.

B. At the conclusion of the public hearing, the city clerk shall weight and tabulate the assessment ballots in accordance with the provisions of Government Code Section 53573(e), as that section may be amended or renumbered.

C. Upon completion of the tabulation, the city council shall determine whether a majority protest exists pursuant to the provisions of Government Code Section 53573(e).

D. If a majority protest exists, the city council shall not impose or increase the assessment, as the case may be. (Ord. 98-017 § 2; prior code § 81.02.208)

If a majority protest does not exist upon completion of the tabulation, the city council may adopt a resolution ordering the formation of the district, confirming the diagram and assessment, and establishing a district budget for the fiscal year or years referred to in the report. Adoption of this resolution shall constitute the levy of the confirmed assessment. For years following the fiscal year or years referred to in the report, the city council shall adopt an annual budget for the district in accordance with the provisions of this chapter. (Ord. 2000-017 § 4(a)(12); Ord. 99-008 § 2; Ord. 98-017 § 2; prior code § 81.02.209)

Upon levying the initial and any annual assessment as provided in this chapter, the city council shall direct the city clerk to execute and record in the office of the county recorder, pursuant to the provisions of Streets and Highways Code Section 3114, the required assessment diagram and notice of assessment in substantially the form described in Section 3114 of the California Streets and Highways Code. The notice of assessment shall state the duration of the assessment. The assessment shall be a lien on the land upon which it is levied. This lien shall be paramount to all other liens, except prior assessments and taxes. (Ord. 98-017 § 2; prior code § 81.02.210)

After formation of the district, the district budget shall be established annually by the city council as a part of the regular budget approval process for the city as a whole; provided, however, that where the maintenance services to be provided are not anticipated to change in any substantial manner during an upcoming year, the city council may establish a multi-year budget and assessment and, in such case shall specify any reporting and other obligations imposed as conditions to allowing a multi-year budget and assessment.

For the purpose of adoption of the annual district budget, the engineer shall annually prepare and file with the city clerk a report containing the information specified in Section 3.124.110 of this chapter. In the event that the city council accepts the report as submitted, or as modified, the city council shall take one of the following two actions:

A. If the city council does not intend to increase the assessment, other than as permitted for inflation adjustment pursuant to Section 3.124.120 of this chapter, the city council may by resolution adopt the budget and levy the assessment for the fiscal year or years covered by the engineer's report. Adoption of this resolution shall constitute the levy of the confirmed assessment, and the city clerk shall follow the procedures specified in Section 3.124.180 of this chapter.

B. If the city council does intend to increase the assessment, all of the procedures specified in Sections 3.124.140 through 3.124.170 of this chapter shall apply and be followed. Upon completion of those procedures, if a majority protest does not exist, the city council may by resolution adopt the budget and levy the assessment for the fiscal year or years covered by the engineer's report. Adoption of this resolution shall constitute the levy of the confirmed assessment, and the city clerk shall follow the procedures specified in Section 3.124.180 of this chapter.

C. A surplus or a deficit in the district's account at the end of a fiscal year shall be carried over to the following fiscal year. (Ord. 98-017 § 2; prior code § 81.02.211)

Subject to the requirement that all procedures required for formation of a district under this chapter are followed, and subject to compliance with the provisions of Streets and Highways Code Section 3113, if applicable to the change in question, the city council may make the following changes to a district, once formed:

A. Annexation of land to the district. In this case, it shall only be necessary to apply the formation proceedings to the owners of the land to be annexed;

B. Formation of a new zone of benefit within the district. Where, as part of the proceedings for formation of the district, the owners of land within the proposed new zone have given their prior consent to the formation of the new zone of benefit, it shall be unnecessary to apply the formation proceedings to the establishment of the new zone of benefit;

C. An increase in the assessment on any parcel;

D. A change in the method or formula by which the cost of maintenance is distributed among the parcels of land within the district;

E. A material reduction in the scope of the public improvements to be maintained.

Subject to compliance with the provisions of Streets and Highways Code Section 3113, where applicable to the change in question, all other changes, including without limitation dissolution of the district, consolidation of two or more districts, may be made without application of the formation proceedings, if there is no increase in the assessment on any parcel of land within the district, or any effect upon the method or formula by which the cost of the maintenance is distributed among the parcels within the district. (Ord. 98-017 § 2; prior code § 81.02.212)