1. Special Assessments John T. Shockley, Attorney Ohnstad Twichell, P.C.
North Dakota League of Cities
Bismarck, North Dakota
September 17, 2016

2. Introduction
Typically, local governments must borrow money to finance improvements, upgrades, buildings, and equipment.
Cities may borrow money in various ways, including:
General obligation bonds,
Revenue bonds,
TIF financing, and
Special assessment bonds.

3. Special Assessments
Likely the most common way ND cities finance various improvements.
Improvements include: streets, water lines, sewer lines, sidewalks, boulevards, and related items. (N.D.C.C. § )
Payable from special assessments that are levied and apportioned against benefitted property, backed by the full faith and credit of the city.

4. Special Assessments: Valid Levy Requirements
Determine the special benefit accruing to each lot or parcel of land from the improvement;
The special assessment levied against each lot must be limited to its just proportion of the total cost of the improvement; and
It must not exceed the benefit which has been determined to have accrued to the property.

5. Special Assessments: Statutory Authority
Chapter of the North Dakota Century Code:
Can only be used where improvements benefit certain property in the city and not others.
No election is required prior to the issuance of special assessment bonds.
Specific procedure in which a majority of the
property area within improvement district may
protest and prevent the improvement from proceeding

6. Special Assessments: Procedural Requirements
Two separate procedures that cities must follow:
1. Establish the improvement district and award the contract;
2. Apportion and levy the special assessment;

7. Special Assessments: Establish the Improvement District
Create a district.
City engineer prepares a report, the governing
body may approve the report and declare the
improvement necessary (water and sewer improvements do not require a resolution declaring the improvement necessary).
Resolution of necessity is published in the official newspaper once each week for two consecutive weeks.
If within 30 days after first publication protests are not filed with the city auditor by a majority of landowners, the city may proceed with the project.

8. Special Assessments: Construction Bids
If there are sufficient protests, the project is stopped.
If not, the city engineer prepares plans and specifications which are to be approved by the governing body prior to advertising for construction bids.
Advertise construction work in the official newspaper once each week for two consecutive weeks and then award to the lowest responsible bidder.

9. Special Assessments: Apportion and Levy
Initially apportioned and levied by the city’s special assessment commission (comprised of 3 members).
At any time after the contract has been let, the governing body may direct the special assessment commission to apportion and levy special assessments.
Commission develops and determines a list of property benefitted by the improvement and how much the property is proposed to be assessed.

10. Special Assessments: Apportion and Levy (con’t.)
The list and notice of public hearing before the commission is published once each week for two consecutive weeks in the official newspaper.
At the hearing the commission may alter the special assessments, but the total amount assessed may not be adjusted.
The list is then confirmed, certified, and filed with the city auditor.
Notice of the confirmation of the list is published in the official newspaper at least 15 days before the public hearing before the city council.

11. Special Assessments: Appeals and Confirmation of List
Any person aggrieved by the decision may file notice of appeal with the city auditor prior to the hearing before the city council.
Governing body hears appeals filed with the city auditor.
City council may adjust special assessments but cannot alter the total aggregate amount assessed.
City council then confirms the list; an aggrieved individual may file an appeal with the district court within 30 days in accordance with N.D.C.C. §

12. References
Chapter 40-22, N.D.C.C. (2007) Improvements by Special Assessment Method
Chapter 40-23, N.D.C.C. (2007) Assessment of Benefits
Chapter 40-24, N.D.C.C. (2007) Special Assessment Funds and Disbursements Thereof
Chapter 40-27, N.D.C.C. (2007) Funding and Refunding Special Assessment Warrants
Chapter 40-29, N.D.C.C. (2007) Sidewalks
Chapter 40-30, N.D.C.C. (2007) Special Streetlighting in Cities
Chapter 40-31, N.D.C.C. (2007) Construction and Repair of Curbing and Gutters in Cities
Chapter 40-32, N.D.C.C. (2007) Boulevards in Cities and Park Districts
Cloverdale Foods Co. v. City of Mandan, 364 N.W.2d 56 (N.D. 1985)
Welcome to an Engaged Community. (n.d.). Retrieved August 30, 2016, from
Shockley, John T. Municipal Debt and Borrowing, 2015.