1. Special assessment Guide
Presented By
Claire Baartman, Finance Officer
Justin Weiland, City Administrator
City of Dell Rapids, SD

2. Special Assessments Definitions:
Special assessment: The term used in the United States to designate a unique charge that government units can assess against real estate parcels for certain public projects such as construction and maintenance of local improvements.
Special Assessment District (SAD): A specific geographic boundary of the area where the construction and maintenance of local improvements will take place. (SDCL )
Local improvement: The process of building, altering, repairing, improving, or demolishing any local infrastructure facility, including any structure, building, or other improvement of any kind to real property… (SDCL ).
Special Benefit: The benefit gained on real estate as a result of the construction and maintenance of local improvements.
QuickStarter has created an outline to help you get started on your presentation. Some slides include information here in the notes to provide additional topics for you to research.

3. Contents Where to Begin Resolution of Necessity Process
Plans and Specs
Bid, Award & Construction
Assessment Roll & Notice of Hearing
Approval and Levy of Assessments
Special Record
Mailing to Property Owners
Collection

4. CAUTION!!! We are not experts in Special Assessments
These are recommendations based on our experience.
Always follow State Statute
Always check with your CITY ATTORNEY

5. Special Assessment: When?
Local Improvement
Property Benefitted – Must Pass the Special Benefit Test
Funding Mechanism
City Driven or Property Owner Driven

6. Special Assessment: Project Examples
Public Infrastructure
Infrastructure for undeveloped areas –
Infrastructure maintenance and replacement in existing neighborhoods. Infrastructure has aged and needs replacement.
Water Main Installation / Replacement
Sewer Main Installation / Replacement
Storm Sewer Improvements
Curb and Gutter Installation
Sidewalk Installation
Street Surfacing Improvements
Inclusive of sub surface improvements
Able to include Engineering Costs Associated With Project
Special Assessment: Project Examples

7. Special Assessment: Pros & cons
Dependable Source of Revenue for the project
Revenue Source that does not count towards Debt Limit
A means to tax a specific property for improvements abutting their property and not the entire community
Helps the City to plan for future infrastructure improvements (Capital Improvement Plan recommended)
Special Assessment Cons:
The process and administration of Special Assessments is difficult and time consuming
What improvements are assessable is sometimes difficult to determine (Adopt an Assessment Policy)
Determining the Special Benefit Test is sometimes difficult to prove
Property Owners reactions to Special Assessments is not always positive (Over Communicate)
Special Assessment: Pros & cons

8. WHERE TO BEGIN: Identify project
Identify Scope of Public Improvement Project
Local Improvement – Make Sure it is assessable/benefit
Gain Political Support of Council and Mayor
Begin Preliminary Engineering to Calculate Cost Estimates.
Property Owners will want to know costs to property
Adopt a Special Assessment Policy for your Jurisdiction

9. WHERE TO BEGIN:
Hold a Public Informational Meeting to inform those that will be impacted. START EARLY!!!
Provide Affected Property Owners with Information
maps, costs, preliminary plans, benefits
Gain Property Owner insight through discussion and comments.
Incorporate comments and desires into design.
Get Property Owners on Board with the Improvement!

10. Where to begin: Communication
A Public Meeting is not a required step of the Special Assessment process. However communication with affected property owners will increase chances of support and success.

11. WHERE TO BEGIN: Funding
Identify Funding Source(s)
City Funds, Loans, Grants, Special Assessments, Etc…
Secure Funding Source(s)
Dell Rapids has utilized DENR STATE WATER PLAN for Utility Replacement/Installation Costs. Grant and Loans.
Dell Rapids has utilized various DOT programs to assist with funding surfacing improvements.
Rural Development Grants and Loans and various other funding programs exist.
WHERE TO BEGIN: Funding

12. RESOLUTION OF NECESSITY
Calculation of Special Assessment (SDCL )
Engineering Firm calculates costs to benefitted properties.
Utilize Special Assessment Policy to dictate the calculation of Special Assessments.
Deferred Assessment – Property Outside of Municipal Boundaries/Other Special Requests
Send Properties Owners a “Worst Case Scenario” Cost
Emphasize Costs are Estimates - Property Owners will be responsible for Actual Bid Costs

13. RESOLUTION OF NECESSITY
Consider Holding another Public Meeting – Round Table
Have Plans Available for Review
Engineers Available to Answer Questions
Explain the Assessment Process
Comment Cards
Continued Communication – Build Trust

14. Resolution of necessity
Proposed Resolution of Necessity (SDCL )
Notice of Hearing (SDCL )
Mailing to Property Owners (SDCL )
Certified Mail
Include Individual Property Cost Breakdowns
Include Resolution
Include Public Hearing Notice
Public Hearing (SDCL )

15. Resolution of necessity: Cover Letter

16. Resolution of Necessity:
General Nature of the Proposed Improvement
Estimate of Total Cost and/Or Cost Per Lineal Foot
Description of Classes of Lots
Method of Appropriating the Benefits to the lots
Details, Plans and Specifications viewable for inspection.

17. Resolution of necessity: Public Hearing
Hold Public Hearing – Take Public Comment / Hear Objections
Adopt Resolution of Necessity – with or without amendments
20 Day Referendum Period
Property Owners May Stop Special Assessment – written petition of more than 55% of the total front footage of the project.

18. PLANS AND sPECS
Following 20 Day Referendum - Direct Engineer to design Final Specifications.
The plans and specifications shall be filed in the office of the finance officer and available for examination by any interested party. (SDCL )
Incorporate Public Input and individual property preferences into the Plans and Specs.

19. BID, AWARD, CONSTRUCT
Go Out For Bids (20 Days Following Publication – SDCL )
Follow all Bid Procedures and Laws
Bonding – Close on Financing prior to awarding Bid
Award Bids

20. Construction Don’t Forget – Keep the Public Updated!
Hold a Pre-construction Meeting with Engineer, Contractor and Sub-Contractor
Utilize Newsletters, Text Messaging, Social Media to keep public informed.
Consider talking about:
Unique Aspect
A special assessment is not an ad valorem property tax

21. Construction Complete
Contractor Completes Project
Engineer Calculates Assessments based on actual costs improved to benefited property
Finance Officer Creates the Assessment Roll
Consider talking about:
Unique Aspect
A special assessment is not an ad valorem property tax

22. Assessment ROll Assessment Roll (SDCL 9-43-87)
Name of the Owner
Legal Description
Amount Assess
Assessment Payable in Installments (SDCL )
Number Of Installments – Determined by Governing Body
Interest Rate
Whole assessment or any installment may be paid at any time.
Installments paid before their respective due dates are deemed paid in inverse order of their due dates.

23. Assessment Roll Notice of Hearing:
Finance Officer Shall Publish a Notice of Hearing
Describe Improvement
Time and Place of Hearing
Open for Public Discussion
Finance Officer Shall Mail a Copy of the Notice
First Class or Certified
Mailing may not be less than 10 nor more than 20 days before the date set for the Hearing
(SDCL )

24. The Hearing Agenda to be Posted – 24 Hours in Advance
Governing Body to take Action (SDCL )
Approve – See Next Slide
Equalize or Amend – Publish Changes, Notice and Hearing Shall be Held (SDCL )
Reject – New Roll May be Made (SDCL )

25. Approval and Levy of assessments
APPROVAL OF RESOLUTION AND LEVY OF ASSESSMENT
According to (SDCL ) & (SDCL )
Describe Assessment and Local Improvement
Provide Dates of Official Approval
Resolution to Specify Payment under Plan One or Plan Two (SDCL )
Plan One: Collection by County Treasurer
Plan Two: Collection by Municipal Finance Officer
Approval and Levy of assessments

26. Appeal of Decision
Decision of a Municipal Government may be appealed (SDCL )
Shall Be Within 20 Days After the Publication of the Adopted Assessment Roll
Shall File Written Notice with Finance Officer & Clerk of Circuit Court in the County in which the Property is located
Shall Describe the Property and Reason for Appeal.

27. Special Record The Finance Officer Shall Prepare by Special Record:
Record of all Assessments
Consecutive Number
Date Assessment is Due
Name of Property Owner
Legal Description of Property
Amount Assessed
Character of the Improvement
The Date Payment/Installment is Paid

28. Mailing to Property Owners
Finance Officer Must Immediately Mail to the Owners of Each Assessable Piece of Land (SDCL )
Notice Specifying the Amount of Assessment
Number of Installments,
Date of Approval of the Assessment Roll
Statement: That any number of installments may be paid without interest at the office of the FO within 30 days from the date of approval of the roll, after which date the unpaid balance will draw interest from the date of the approval of the assessment Roll.

29. Collection of Assessments
Begin Collections on Annual Basis
Assessments Paid Prior to Term – with Calculated Interests to Date of Payment.
Communicate with County on Annual Basis

30. Make your project a success
Identify a Project
Identify Funding Sources
Determine if a Special Assessment meets the Special Benefit Test
Adopt an Assessment Policy
Know the Costs
Over Communicate with Property Owners
Incorporate Property Owners Suggestions into Project
Follow Special Assessment Laws (SDCL 9-43)
Establish a Capital Improvement Plan
Make your project a success

31. Works Cited South Dakota Codified Law – SDCL 9-43
South Dakota Municipal League – Guide to Special Assessments
Dell Rapids Public Notices and Correspondence