Sections 56.20 through 56.27 shall be known as and may be referred to as the "Home Rule Assessment Act," the provisions of which shall only be applicable to special assessments imposed prior to May 1, 2017. The city may finance the costs of the projects by levying, and collecting assessments on any property specially benefitted thereby, as provided in Section 6.02 of the City Charter, in §§ 56.01 through 56.07, and herein. Assessments may be levied only on specially benefitted real property and only at a rate of assessment not exceeding the special benefit accruing to such property from the specific project, the cost of which is being financed with such assessment.
(A) (1) Projects. The City may, by resolution of the Council:
(a) Provide for the construction, reconstruction, repair, paving, repaving, hard surfacing, rehard surfacing, widening, guttering, and draining of streets, boulevards, and alleys; for grading, regrading, leveling, laving, relaying, paving, repaving, hard surfacing, and rehard surfacing of sidewalks; for constructing or reconstructing permanent pedestrian canopies over public sidewalks; and in connection with any of the foregoing, provide related lighting, landscaping, street furniture, signage, and other amenities as determined by the Council;
(b) Order the construction, reconstruction, repair, renovation, excavation, grading, stabilization, and upgrading of greenbelts, swales, culverts, sanitary sewers, storm sewers, outfalls, canals, primary, secondary, and tertiary drains, water bodies, marshlands and natural areas, all or part of a comprehensive stormwater management system including the necessary appurtenances and structures thereto and including, but not limited to dams, weirs and pumps;
(c) Order the construction or reconstruction of water mains, water laterals, alternative water supply systems, including, but not limited to, reclaimed water, aquifer storage and recovery, and desalination systems, and other water distribution facilities, including the necessary appurtenances thereto;
(d) Pay for the relocation of utilities, including the placement underground of electrical, telephone, and cable television services, pursuant to voluntary agreement with the utility, but nothing contained in this paragraph shall affect a utility's right to locate or relocate its facilities on its own initiative at its own expense;
(e) Provide for the construction or reconstruction of parks and other public recreational facilities and improvements, including appurtenances thereto;
(f) Provide for the drainage and reclamation of wet, low, or overflowed lands;
(g) Provide for off-street parking facilities, parking garages, or similar facilities;
(h) Provide for mass transportation systems; and
(i) Provide for the payment of all or any part of the costs of any such improvements by levying and collecting special assessments on the abutting, adjoining, contiguous, or other specially benefitted property.
(2) Any one of the foregoing Subsections (a) through (i) is referred to herein as a "project" or "projects."
(B) Method of assessment. Assessments against property specially benefitted by a Project may be levied upon the specially benefitted property in proportion to the benefits to be derived therefrom, when the project provides a benefit which is different in type or degree from benefits provided to the community as a whole, such special benefits to be determined and prorated according to a method of apportionment recommended by the city's independent consultant based upon one or more of the following methods or any combination thereof:
(1) The foot frontage of the respective properties specially benefitted by the project;
(2) The square footage of the respective properties specially benefitted by the project;
(3) Equivalent measurement units appropriate to the type of project being constructed, including, without limiting the generality of the foregoing, "equivalent residential units" or "equivalent residential connections" with respect to water and/or sewer utility projects;
(4) Ad valorem values where the benefit is determined to be related to the value of the benefitted properties; or
(5) Such other method as shall apportion the assessments equitably among the specially benefitted property.
(C) Procedure for levy of assessments.
(1) Resolution declaring projects and assessments. When the City Council determines to construct any project and to defray the whole or any part of the cost thereof by assessments, the Council shall adopt a resolution stating (a) the nature of the proposed project, (b) the location of the project, (c) the portion of the cost thereof to be paid by assessments, (d) the manner in which the assessments shall be made, (e) when the assessments are to be paid, and (f) what part, if any of the cost of the improvements, shall be paid from the General Fund or other funds of the city.
(a) Such resolution shall also designate the lands upon which the assessments shall be levied, and in describing the lands it shall be sufficient to describe them as "all lots and lands adjoining and contiguous or bounding and abutting upon such improvements, or specially benefitted thereby, and further designated by the assessment plat described below."
(b) The resolution shall also state the total estimated cost of the project. Such estimated cost may include the cost of construction or reconstruction; the cost of all labor and materials; the cost of all lands, property rights, easements and franchises acquired; financing charges; interest prior to and during construction, and for one year after completion of construction; discount on the sale of obligations (as defined in § 56.21); the cost of plans and specifications, surveys, and estimates of costs and of revenues; the cost of engineering and legal services; all other expenses necessary or incident to determining the feasibility or practicability of such construction or reconstruction; administrative expenses; and such other costs as may be necessary or incident to the financing thereof, including reimbursement to the city of money advanced for such costs.
(c) The resolution provided for in this subsection, Paragraph (1) above, may be combined with and adopted at the same time as the resolution referred to in this subsection, Paragraph (5) below.
(2) Description of improvements, with estimated cost of proposed improvement, required before adoption of resolution. At the time of the adoption of the resolution specified in this subsection, Paragraph (1) above, there shall be on file with the City Clerk, (a) an assessment plat showing the area to be assessed, (b) a description of the project, which description may include preliminary or final plans or drawings, and (c) an estimate of cost of the proposed project, all of which shall be open to inspection by the public.
(3) Publication of resolution. Upon the adoption of the resolution specified in Paragraph (1) above, the City Clerk shall cause such resolution to be published one time in a newspaper of general circulation in the city.
(4) Preliminary assessment roll. At or prior to the time of the adoption of the resolution described in Paragraph (1) above, the Council shall cause to be prepared a preliminary assessment roll. The preliminary assessment roll shall (a) identify by parcel numbers or by other method sufficient to provide notice to the owners thereof of the lots and lands to be assessed and (b) the amount of the benefit to, and the assessment against, each lot or parcel of land.
(5) Publication of preliminary assessment roll.
(a) Upon completion of the preliminary assessment roll, the Council shall by resolution fix a time and place at which the owners of the property to be assessed, or any other persons interested therein, may appear and be heard as to (a) the propriety and advisability of constructing the project, (b) the cost thereof, (c) the manner of payment therefore, and (d) the amount thereof to be assessed against each parcel benefitted thereby.
(b) Not less than 20 days prior written notice of the time and place of the hearing shall be sent to the owners of the parcels to be benefitted by the project. The notice shall include (a) the parcel identification number of the property to be assessed, (b) the unit basis upon which the assessment is being levied, (c) the number of units allocated to the particular parcel, (d) the total assessment against the parcel, (e) the estimated annual payment amount if the assessment is paid in installments, and (f) the total of payments that are estimated to be made if the assessment is paid in installments. The notice shall be sent via U.S. Postal Service, first-class mail, postage prepaid, or by such other method as shall be determined by the City Clerk to each of such property owners at his last known address. Proof of such sending shall be made by affidavit of the City Clerk or Deputy City Clerk, by the City Engineer, or by such agent of the city as shall be designated by the City Clerk, such proof to be filed with the City Clerk; provided, that failure to send such notice or notices shall not invalidate any of the proceedings hereunder. The names and addresses of the owners of the benefitted properties shall be obtained from the records of the Property Appraiser or from such other sources as the City Clerk or City Engineer deems reliable. The notice required by this Paragraph (5) may be combined with the notice of intent provided for in § 56.01, provided that any such combined notice shall provide for a public hearing to be (a) no earlier than the date for declaration of the results of the election as provided in § 56.06, and (b) that the public hearing for a particular project will be canceled if the project is not approved as provided in § 56.06(B).
(c) Notice of the time and place of such hearing shall comply with the provisions of F.S. § 197.3632.
(6) Council to hear complaints and adjust assessments; confirmation of roll; rebate of difference in cost and assessment. At the time and place named in the notice specified in Paragraph (5) above, the Council shall meet to hear and consider any and all complaints as to the assessments and shall adjust and equalize the assessments on a basis of justice and right. When so equalized and approved by resolution of the Council, a final assessment roll shall be filed with the City Clerk, and such assessments shall stand confirmed and constitute, until paid, valid and binding liens upon the property against which such assessments are made, coequal with other governmental liens for unpaid taxes, as more particularly provided in Subsection (D) below.
(a) Promptly after such confirmation, the assessment roll shall be recorded by the City Clerk in the official records of the city, and such record of the liens shall constitute prima facie evidence of their validity.
(b) Upon completion of the project, the City shall credit to each of the parcels assessed the difference in the amount of the assessment as originally made, approved and confirmed and the proportionate part of the actual cost to be paid by assessments as finally determined upon the completion of the project, but in no event shall the final assessments exceed the lesser of (a) the amount of benefits determined to accrue to the property or (b) one hundred five percent (105%) of the amount originally assessed.
(7) Use of uniform method; combined notices and hearings. In the event that the Council may determine to consider use of the uniform method for collection of assessments, as set forth in F.S. Ch. 197, notice of intent to use the uniform method may be combined with the publication of the resolution provided for in Paragraph (1) above or with the publication of notice of the hearing on the preliminary assessment roll provided for in Paragraph (5) above; in such event, the publication shall comply with the provisions of F.S. § 197.3632(3)(a), regarding content and publication requirements, and the mailed notice shall comply with the requirements of F.S. § 197.3632(4)(b), regarding content and mailing requirements.
(a) At the hearing on use of the uniform method, if the Council shall determine to use the uniform method, it shall adopt a resolution satisfying the requirements of F.S. § 197.3632(3)(a), which may be combined with the resolution required by Paragraph (1) above into one resolution. At the hearing approving the preliminary assessment roll, the Council shall adopt a resolution satisfying the requirements of F.S. § 197.3632(4)(c), which may be combined with the resolution required by Paragraph (5) above into one resolution.
(b) In the event that the Council shall determine to use the uniform method in connection with the collection of the assessments: (a) there shall be added to the amount of the annual installment due with respect to each parcel an amount necessary to compensate the County Property Appraiser and County Tax Collector for such fees and charges as they may impose in connection with the collection of such assessments; (b) the amount of each annual installment of the assessment due with respect to each parcel shall be adjusted as deemed necessary by the Council to take into account discounts allowed for early payment of annual installments of assessments and taxes as provided for in Fla. Stat. Ch. 197; and (c) the annual rate of interest used to calculate the amount of each annual installment of special assessments may be assumed to be one percent per annum greater than the net interest cost (as hereinafter defined) on the obligations issued to finance the project with respect to which the assessments are levied.
(c) The city may enter into interlocal agreements with the County Property Appraiser and the County Tax Collector regarding (a) any services to be provided by them in connection with the preparation of the assessment roll, (b) the collection of the assessments, (c) prepayment of assessments, and (d) sales of tax certificates and tax deeds with respect to any assessed parcels.
(D) Payment of assessments; prepayment; method and terrn of installment payment; extent and priority of lien; interest. Assessments shall be payable at the time and in the manner stipulated in the notice mailed pursuant to Subsection (C), Paragraph (5) above, unless provided otherwise by resolution of the Council.
(1) Assessments may be paid in full within such period of not less than thirty (30) days following the adoption of the resolution referred to in Subsection (C), Paragraph (6) above, at such place or places as shall be specified by the Council in such resolution, and, if so paid, may be allowed a discount in such amount as shall be determined by the Council to be allocable to the cost of financing the portion of the project to be financed with assessments paid in installments, including, but not limited to, costs of issuance of obligations, capitalized interest and debt service reserves for obligations, legal and financing fees and expenses, the cost of municipal bond insurance premiums, discount on the sale of obligations, and such other expenses as are necessary or desirable in connection with the issuance of the obligations.
(2) Assessments which are not paid in full as provided above may, in the discretion of the Council, be made payable as nearly as practicable (a) in equal principal installments to which shall be added interest on the unpaid principal balance or (b) in equal annual installments of principal and interest, with interest computed on the unpaid principal balance.
(3) In the discretion of the Council, assessments for projects payable in installments may be made over a period not to exceed the lesser of (a) the estimated useful life of the project or (b) thirty (30) years from the date of approval of the final assessment roll pursuant to Subsection (C), Paragraph (6) above.
(4) Unpaid assessments shall constitute a lien against the benefitted properly in an amount equal to the unpaid principal balance of the assessment together with (a) interest and penalties thereon to the date of payment, (b) interest on the obligations issued to finance such assessments to the first date on which such obligations can be redeemed without penalty, and (c) any fees and expenses related to the collection of such assessments.
(5) Failure to pay assessments being collected using the uniform method pursuant to Subsection (C), Paragraph (7) above, shall not give rise to duplicate liens against the assessed parcels based on the sale of tax certificates or the issuance of tax deeds against the affected parcel; the amount of the assessment lien hereunder against a parcel shall be for the unpaid amount of the assessment and the interest and fees associated therewith as provided above.
(6) The lien against properties for unpaid assessments and interest and expenses associated therewith as provided above shall be a lien coequal with the lien of all state, county, and municipal taxes, and shall be superior in dignity to all other liens, titles, and claims. Satisfaction of assessment liens shall be evidenced by certificate of the City Clerk or the County Tax Collector, recorded in the Official Records of the city and/or the county relating to the property assessed. For the purposes of determining the amount of a recorded special assessment lien in disbursing the proceeds from tax sale deeds, the lien of record against any property shall be deemed to be the amount due but not yet paid increased by the amount of any interest and cost of collection if delinquent. No proceeds from tax sale deeds shall be used to pay any assessment unless sufficient proceeds are available to pay in full the assessment.
(7) Unpaid assessments shall bear interest at a rate of eight percent (8%) per annum or, if obligations have been issued secured by the payment of such assessments, then the unpaid assessments shall bear interest at a rate equal to the greater of (a) eight percent (8%) per annum or, (b) the net interest cost rate on such obligations plus one percent (1%) per annum, such interest to accrue from the date of issuance of the obligations. For purposes of this paragraph, "net interest cost rate" shall mean the "Net Interest Cost" as shown on Line 20, Column (g), Form 8038-G, Department of the Treasury, Internal Revenue Service, or a rate calculated in a comparable manner.
(E) Legal proceedings instituted upon failure of property owner to pay special assessment or interest when due; foreclosure; service of process. If the Council has not elected to use the uniform method with respect to any assessments, the following provisions shall apply to such assessments. Each annual assessment installment shall be paid upon the dates specified in the notice mailed pursuant to Subsection (C), Paragraph (5) above, unless provided otherwise by resolution of the Council, with interest upon all deferred payments, until the entire amount of the assessment has been paid. Upon the failure of any property owner to pay any annual installment due, or any part thereof, or any annual interest upon deferred payments, the Council may cause to be brought the necessary legal proceedings to enforce payment thereof with all accrued interest and penalties, together with all legal costs incurred, including reasonable attorneys' fees, to be assessed as part of the costs. In the event of default in the payment of any installment of an assessment, or any accrued interest on such assessment, the whole assessment, with the interest and penalties thereon, shall immediately become due and payable and subject to foreclosure. In the foreclosure of any special assessment, service of process against unknown or nonresident defendants may be had by publication, as provided by law. The foreclosure proceedings shall be prosecuted to a sale and conveyance of the property involved in such proceedings as now provided by law in suits to foreclose mortgages, or, in the alternative, such proceeding may be instituted and prosecuted under Fla. Stat. Ch. 173, or as otherwise provided by law.
(F) Council required to make new assessments until valid assessment is made if special assessment is omitted or held invalid. If any assessment made under the provisions of this section shall be either in whole or in part annulled, vacated or set aside by the judgment of any court, or if the Council shall be satisfied that any such assessment is so irregular or defective that the same cannot be enforced or collected, or if the Council shall have omitted to make such assessment when it might have done so, the Council shall take all necessary steps to cause a new assessment to be made for the whole or any part of any project or against any property benefitted by any project, following as nearly as may be the provisions of this section, and in case such second assessment shall be annulled, the Council shall obtain and make other assessments until a valid assessment shall be made.
(G) Assessment roll sufficient evidence of assessment and other proceedings of this subchapter; variance not material unless party objecting materially injured thereby. Any informality or irregularity in the proceedings in connection with the levy of any assessment under the provisions of this subchapter shall not affect the validity of the assessment where the assessment roll has been confirmed by the Council. The assessment roll as finally approved and confirmed shall be competent and sufficient evidence that the assessment was duly levied, that the assessment was duly made and adopted, and that all other proceedings adequate to the adoption of the assessment roll were duly had, taken and performed as required by this subchapter, and no variance from the directions hereunder shall be held material unless it be clearly shown that the party objecting was materially prejudiced thereby. However, nothing in this section shall relieve the Council or the City Clerk from the obligation to notify the affected property owners of the assessments as required by this subchapter.
(H) Other expenditures for projects. The city may pay out of its general fund or out of any special fund that may be provided for that purpose, such portion of the cost of any project as it may deem proper.
(I) Plats, plans and specifications. All assessment plats, plans and specifications, cost estimates and records of the names and addresses of the owners of property to be assessed shall be kept and maintained by the engineering, public works, or other similar department of the city, or such other office or officer of the city as may be specified by the Council from time to time.
(J) Amendment. Before or after the issuance of Obligations as described in this subchapter, the project or projects for which such obligations are authorized may be amended or substituted by the amendment of the resolution authorizing the obligations. If such amendment shall involve a change in the location or nature of any project, or a change in the benefitted property or in the amount of such benefit, the Council shall, before or after the amendment to the resolution, proceed to amend the assessment roll and record the appropriate notations in the official records of the city. The procedures set forth in Subsection (C), Paragraph (5) above, shall be followed in making such amendment to the assessment roll and the official records of the city. The assessments levied as a result of such amendment or substitution of projects, together with the assessments previously levied and not amended or substituted, shall be not less than the amount necessary to provide for payment of the principal, interest and applicable redemption and/or mandatory purchase premium with respect to the obligations.
(Ord. 2002-68, passed 11-7-02; Am. Ord. 2002-75, passed 1-2-03; Am. Ord. 2010-80, passed 11-4-10; Am. Ord. 2017-35, passed 5-4-17)