As the fiscal year progresses and the strategy for implementation of the CIP develops, regardless of the extent to which the City Council determines to use the non- ad valorem assessment method, a resolution authorizing such use is being presented for approval by the City Council. Florida Statutes require the Public Hearing must be advertised for four consecutive weeks prior to the meeting where the resolution will be considered.  To that end, advertisements have been published in preparation of tonight’s Public Hearing. 

Background: 

The City has historically maintained its residential streets by completing projects using a combination of City funds. Accumulated funds collected from multiple years’ Gas Tax proceeds have been combined with collections from special assessments which have been applied at various levels against benefiting properties based on the front footage owned along the streets being repaved or reconstructed. Over the past 30 years, there have been 12 street paving projects using this method. Streets that are considered major arterials such as Main Street/Nebraska, portions of Grand Boulevard, Madison, Congress, Gulf, Adams, Marine Parkway and Cecelia were fully funded by the City in many cases.  Recently, Pasco County conveyed the newly paved Plathe Road and the southern section of Grand Boulevard to the City along with the maintenance responsibility. 

For the last 12 street paving projects, assessments were levied and liens recorded with payback terms of ten years to include interest and direct billed by the City.  As of 9/30/2015 the City has remaining on the books approximately $265,000 in receivables of which $115,000 is delinquent.  In some cases, property has changed hands without the buyer’s knowledge of the payoff amounts on unamortized and/or unpaid assessments.  While annual billing has occurred according to the unique amortization schedules and cost allocations for each of the paving projects, a substantial number of property owners have not paid their annual installments. That situation would be cured by placing assessments on the tax roll.

By placing future street assessments on the non-ad valorem tax roll, the City would effectively eliminate delinquent receivables going forward as the assessments are collected by the Tax Collector either from the property owner or by the sale of tax certificates every year.