Laserfiche WebLink
Gordon Heitke <br />February 29, 2008 <br />Page2of3 <br />Existing Charter: <br />Improvements located anywhere in the City outside the three "special areas:" <br />the Charter meets the equal basis requirement, as all benefited properties have the <br />same rights. Bonds may be tax-exempt. <br />Improvements located within the three special areas: the equal basis requirement <br />is not met, because one class of properties (those on which a single family owner - <br />occupied residential unit existed on September 30, 1993) has the right to avoid <br />assessments altogether. Bonds must be taxable. <br />Improvements located partly in one of the three special areas and partly outside <br />any of those areas: the equal basis requirement is not met, because owners inside <br />and outside the special areas have different rights (e.g., business owners in the <br />special areas may not file petitions against the improvement, while business <br />owners in the rest of the city may file such a petition and prevent the assessment <br />from being levied). Also, the single-fsmily "opt out" described above gives <br />different rights to owners of those properties. Bonds must be taxable. <br />Task Force Proposal: <br />Improvements located anywhere in the City outside the three "special areas: " <br />the equal basis requirement is met, as all benefited properties have the same <br />rights. Bonds may be tax-exempt. <br />Improvements located within the three special areas: the equal basis requirement <br />is met, because the single-family "opt out" is removed, and all benefited <br />properties have the same rights. Bonds may be tax-exempt. <br />Improvements located partly in one of the three special areas and partly outside <br />any of those areas: the equal basis requirement is not met, because owners inside <br />and outside the special areas have different rights (e.g., owners in the special areas <br />may not file petitions against the improvement, while owners in the rest of the <br />city may file such a petition and prevent the assessment from being levied at all). <br />Bonds must be taxable. <br />Charter Commission Proposal: As under the Existing Charter, improvements located <br />entirely within or straddling the single remaining special area must be financed with <br />taxable bonds. However, Section 8.01, subdivision 2, of the Charter Commission <br />Proposal may violate the equal basis requirement for improvements located outside the <br />special area, requiring the issuance of taxable bonds for improvements financed by <br />special assessments anywhere in the City. <br />329677v1 SJB LN140-86 <br />