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December 27, 2000 <br />Page 2 <br />SPECIAL BENEFIT <br />Whether the construction of an improvement project has conferred a special benefit on a <br />parcel of land is an economic determination which requires the City to compare the fair <br />market value of the parcel before the construction of the improvement project with the fair <br />market value of the property after the construction of the improvement project. In contested <br />cases, this determination is normally made with the assistance of a real estate appraiser. If <br />the market value has increased as a result of the construction of the improvement project, <br />a special benefit has been conferred and the City can levy special assessments to the extent <br />of the improvement project cost. <br />UNIFORMITY <br />Because cities are required to allocate special assessments uniformly against similarparcels, <br />most cities adopt special assessment policies to ensure that each successive city council <br />treats similar property in an equitable manner. Special assessment policies are usually <br />mathematical formulae. The project cost is divided by some unit of measure such as the <br />number of dwelling units, the number of lots, or the number of lineal feet in a project and <br />the product is levied as a special assessment proportionately against each parcel within a <br />particular class ofproperty. Special assessment policies which are applied consistently over <br />a period of time result in uniform treatment. The City would argue that the policy insures <br />that each property owner is treated uniformly in a fair manner. Some property owners <br />would argue that the policy treats everyone uniformly, but in an unfair manner. Therefore, <br />a special assessment policy should include a statement which indicates that the City may <br />adjust the proposed special assessment in those cases where it is necessary to ensure that <br />special assessments equal or exceed market value increases. <br />�0o oerr <br />EXCESSIVE ASSESSMENTS <br />There may be cases where the City Council determines that the construction of a public <br />improvement is warranted even though the full cost of the improvement cannot be specially <br />assessed because the amount of the special assessment would not be offset by an increase <br />