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OHIO SPECIAL ASSESSMENTSOUTLINEAUDITOR OF STATE14TH ANNUAL LOCAL GOVERNMENTOFFICIALS’ CONFERENCEAPRIL 3, 2013Stephen P. GrassbaughBenesch, Friedlander, Coplan & Aronoff LLP41 South High Street, Suite 2600Columbus, Ohio 43215(614) [email protected]

I.INTRODUCTIONII.SPECIAL ASSESSMENTS AREIII.(A)Charges against property (not owner) to pay costs of improvements or servicesthat benefit the property(B)NOT taxes(C)Improvements include: sidewalks, sanitary sewers, water lines, storm waterdrainage and streets and roads(D)Services includes lighting, sidewalk repair, cleaning and snow removalPROCESS (GENERALLY AND USING MUNICIPAL CORPORATIONASSESSMENTS AS EXAMPLE)(A)Either (i) Determination of necessity of improvement by municipal corporationor(ii) Petition by property owner(B)Determine Costs (R.C. §727.08)(i)Cost of real estate interests(ii)Surveys(iii)Plans, specifications, profiles and estimates(iv)Publishing and serving notices(v)All proceedings(vi)Labor and material(vii)Interest on debt or money advanced to pay costs in anticipation of levy orcollection of special assessments(viii) Damages(ix)Costs incurred in connection with preparation, levy and collection ofspecial assessments, including legal expenses

(x)(C)(D)Incidental costsLimitation on Costs(i)By petition – current and prior five years assessments cannot exceed 331/3% of actual value of parcel(ii)Without petition(a)current and prior five years assessments cannot exceed 33-1/3% ofactual value of parcel(b)Sewer mains cannot exceed costs of sewer to drain the property tobe assessed(c)Repaving streets when original paving was assessed, cannotexceed 50% of costs(d)Municipal corporation to pay at least 2% (1/50th) of total cost andall costs of intersectionsDetermine Property to be Assessed and Method(i)By percentage of the tax value of the property(ii)In proportion to benefits(iii)By front foot of property bounding and abutting improvement(E)Filing of plans, specifications and estimate; determination of necessity(F)Notice of passage of determination of necessity; notice(i)Served on property owners in same manner as summons or by certifiedmail(ii)If service or return of certified mail fails, publication in newspaper(iii)Usually, automatically do both(iv)Exception for service: If assessment for lighting; sprinkling, sweeping orcleaning streets; planting or maintaining shade trees or improvement ofditches, then publish once for two consecutive weeks2

(G)(H)Opportunity to object(i)Object to amount or apportionment of assessment(ii)Not opportunity to object to improvement or serviceHearing on objections(i)(I)(J)(K)(L)By assessment equalization board consisting of three disinterestedfreeholders of municipal corporationReport of Assessment Equalization Board(i)If increases amount or apportionment of property owner that did notobject, send notice described in (E) again(ii)If lower amount or apportionment without affecting other propertyowners, municipal corporation will pick up difference(iii)Delivers report to councilCouncil approves or disapproves report(i)Approves, council determines whether to proceed(ii)Disapproves, counsel appoints new assessment equalization reportDetermination to proceed(i)State intention to proceed(ii)Adopt estimated assessment prepared and file previously or as revised byassessment equalization board(iii)Determine whether or not claims for damages will be reviewed before orafter completion of projectFile Ordinance to Proceed with County Auditor(i)Establishes priority of lien of assessment over all other liens if filedtimely, including previously filed liens (O.R.C. §319.61)(ii)But, adverse opinion of court of common pleas of Cuyahoga County3

(M)(N)(O)(P)IV.Bids(i)If in excess of 15% of estimate, cannot proceed until after public hearingcouncil determines to proceed(ii)Notice of public hearing to affected property owners publish at least 48hours prior to public hearingAssessment Ordinance(i)After final costs known, final assessments determined(ii)Publish notice of passage of ordinance once(iii)Recommend notice be given to property owner(iv)Provide period for payment(v)Assessments not paid bear interest at rate of debt issued in anticipation ofcollection of assessments or as determined by council(vi)County auditor also charges fee to property owner for collectionIssuance of debt(i)After ordinance to proceed to pay costs of improvement(ii)After final payment of assessments to retire debt or advance to pay costsof improvement(iii)If no debt issued, council can determine an interest rate to be chargedCertify assessment to county auditor for collection(i)Including interest charge(ii)For current year or all years?EACH ASSESSMENT AUTHORIZATION HAS OWN PROCESS(A)Necessary to read appropriate statute4

OHIO SPECIAL ASSESSMENTSAUDITOR OF STATE14TH ANNUAL LOCAL GOVERNMENTOFFICIALS’ CONFERENCEAPRIL 3, 2013Stephen P. GrassbaughBenesch, Friedlander, Coplan & Aronoff LLP41 South High Street, Suite 2600Columbus, Ohio 43215(614) [email protected]

INDEXUNIFORM BOND LAW PROVISIONS . 1COUNTY RENEWAL AREA . 2FILING WITH COUNTY AUDITOR . 10PREPAYMENT OF SPECIAL ASSESSMENTS . 12LIMITED HOME RULE TOWNSHIPS . 13TOWNSHIP WATERWAY ASSESSMENTS . 18TOWNSHIP LIGHTING ASSESSMENT . 20TOWNSHIP PRIVATE SEWAGE COLLECTION TILE ASSESSMENTS . 27MUNICIPAL SPECIAL ASSESSMENTS - GENERALLY . 30MUNICIPAL ASSESSMENTS – SIDEWALKS; SEWERS . 52AGRICULTURAL DISTRICT EXEMPTION . 60SPECIAL IMPROVEMENT DISTRICTS . 62TRANSPORTATION IMPROVEMENT DISTRICTS . 77COUNTY SIDEWALK, CURB AND GUTTER ASSESSMENTS . 92TOWNSHIP ROAD IMPROVEMENTS . 93TOWNSHIP ROAD ASSESSMENTS . 102CONSERVANCY DISTRICT ASSESSMENTS . 108COUNTY WATER SUPPLY . 110SANITARY DISTRICTS . 123SEWER DISTRICTS; COUNTY SEWERS . 137REGIONAL WATER AND SEWER DISTRICTS . 166COUNTY DITCHES . 187

UNIFORM BOND LAW PROVISIONS133.17 Anticipation securities for special assessments.(A) The taxing authority of a subdivision may issue securities in anticipation of the collection ofunpaid special assessments in an amount sufficient to pay that portion of the cost of thepermanent improvement or service for which the special assessments have been levied. Proceedsof the annual collections of the special assessments shall be applied first to pay the debt chargeson the securities payable from those special assessments and then, after the payment in full ofthose debt charges, to pay any other permitted costs.(B) The taxing authority of a subdivision may issue anticipatory securities in anticipation of thelevy of special assessments and of the issuance of securities under division (A) of this section.The anticipatory securities shall mature not later than the last day of December of the fifth yearfollowing the year in which the first such anticipatory securities are issued, except that theanticipatory securities may be renewed thereafter from time to time until the final disposition ofany litigation that prevents or delays the delivery of the securities to be issued under division (A)of this section. The principal amount of those anticipatory securities issued shall not exceed thatportion of the estimated cost of the permanent improvement for which the special assessmentsare to be levied. When anticipatory securities are issued, the proceeds of any securities thereafterissued in anticipation of the levy or of the collection of the same special assessments and all ofthe special assessments collected for the purpose shall be applied first to the extent necessary tothe payment of the debt charges on the anticipatory securities. After the debt charges on theanticipatory securities have been paid or provided for in full, all of the special assessments shallbe applied first to the payment of the debt charges on subsequent outstanding securities.(C) In addition to authority for combination in other provisions of this chapter, securitiesauthorized to be issued under either division (A) or (B) of this section may be combined for allpurposes of this chapter in a single issue composed of securities issued under the applicabledivision (A) or (B) of this section and of securities to pay the subdivision’s share of the cost ofthe permanent improvements for which the special assessment securities are issued, whichcombined issue shall be considered to be for one purpose.(D) Securities issued under this section in anticipation of the levy or of the collection of specialassessments are general obligations of the issuing subdivision.133.37 Refunding special assessment bonds.With the approval of the tax commissioner, the taxing authority of any subdivision at any timemay refund any outstanding bonds of the subdivision which have matured or which are about tomature and which were issued in anticipation of the collection of special assessments, togetherwith the amount of the interest coupons due or to become due on such bonds. The commissionershall approve such issue only to any extent it is found that no other method of payment in wholeor in part exists or will exist prior to the maturity date of such bonds which are about to maturefrom the collection of special assessments in anticipation of which such bonds were issued orfrom other funds in the bond retirement fund of the subdivision, excluding securities held in thebond retirement fund only when the commissioner finds that the sale of such securities in order

to meet the debt charges thereon would necessitate an unwarranted sacrifice of the securities soheld, thereby impairing the ability to meet other debt charges in the future. In the orderapproving such issue, the commissioner shall fix the maturities of the bonds to be issued, whichneed not be subject to sections 133.20 and 133.21 of the Revised Code. No such bonds shallmature in more than ten years. The debt charges thereon shall have the same status with respectto the limitations imposed by Section 2 of Article XII, Ohio Constitution, as the debt chargeswhich are refunded.The proceeds derived from the sale of such refunding bonds shall be transferred to the bondretirement fund of the subdivision, and shall be used only for the purpose of meeting the debtcharges on the bonds to be refunded.This section supplements section 133.34 of the Revised Code.COUNTY RENEWAL AREA303.26 Removal of slum or blighted area definitions.As used in sections 303.26 to 303.56 of the Revised Code, unless a different meaning is clearlyindicated by the context:(A) “Municipality” means any incorporated city or village of the state.(B) “Public body” means the state, any county, municipality, township, board, commission,authority, district, or other subdivision.(C) “Federal government” means the United States or any agency or instrumentality, corporate orotherwise thereof.(D) “Slum ” has the meaning defined in section 1.08 of the Revised Code.(E) “Blighted area” has the meaning defined in section 1.08 of the Revised Code.If such blighted area consists of open land, the provisions of section 303.34 of the Revised Codeshall apply.Any disaster area referred to in section 303.36 of the Revised Code shall constitute a “blightedarea”.(F) “County renewal project” may include undertakings and activities of a county in a countyrenewal area for the elimination and for the prevention of the development or spread of slumsand blight, and may involve slum clearance and redevelopment in a county renewal area, orrehabilitation or conservation in a county renewal area, or any combination or part thereof, inaccordance with a county renewal plan, and such aforesaid undertakings and activities mayinclude acquisition of a slum area or a blighted area, or portion thereof; demolition and removalof buildings and improvements; installation, construction, or reconstruction of streets, utilities,2

parks, playgrounds, and other improvements necessary for carrying out in the county renewalarea the county renewal objectives of sections 303.26 to 303.56, inclusive, of the Revised Codein accordance with the county renewal plan; disposition of any property acquired in the countyrenewal area, including sale, initial leasing, or retention by the county itself, at its fair value foruses in accordance with the county renewal plan; carrying out plans for a program of voluntaryor compulsory repair and rehabilitation of buildings