 |
|
|
|
Special Assessments
Special Assessments are a way for cities to charge properties for the cost of making a local
improvement that benefits those properties. The City of Cottage Grove uses special assessments to partially finance
street improvements, to help residents in street reconstruction areas and to
collect delinquent utility bills or other delinquent bills. Some utility work has also been assessed in the past.
These charges finance a portion of the project's cost and are paid off over time at a given interest
rate, much like an installment loan. A given property cannot be assessed more for a given project than the increase
in value resulting from the project.
Street Improvement Special Assessments
Cottage Grove's Pavement Management Program is funded in part through special assessments to benefiting properties.
These special assessments represent 45% of the project costs. The remaining costs for the
Pavement Management Program are financed by the city as a whole through a property tax levy or through the enterprise
funds.
Special assessment amounts for residential properties are currently determined as 45% of
the construction costs.
The estimated average assessment for residential properties for the 2008 Pavement Management Program is $3,200 to $3,500.
Property owners can choose to pay the special assessment following the assessment hearing, or they can have
it placed on the property taxes, to be paid over 15 years. The interest rate currently is 7%.
All properties with uses other than residential (multiple housing, institutional,
commercial, and industrial) are assessed based on differing formula; contact the Finance Director for
additional information.
Delinquent Utility Bill Assessments
Residents who don't pay their City utility bills are charged an administrative fee, which is added to the amount
owed and certified to their property tax bills as a special assessment. Certification occurs at a public hearing
in October for bills delinquent more than 45 days.
For more information about utility bill assessments, call the City Finance Department at (651)
458-2830.
|
|
|
|
City Gov't