If the report on the proposed acquisition or improvement shows that the estimated amount proposed to be assessed upon any parcel for the proposed acquisition or improvement will exceed one-half of the true value of the parcel as set forth in the report, or shows that the total estimated cost of the proposed improvement or acquisition, less any amount to be paid towards the cost from any source other than special assessments upon the parcels benefited by the acquisition or improvement, when added to the aggregate totals of all unpaid assessments and estimated assessments, as the totals are stated in the report, will exceed in total amount one-half of the true value of all the parcels proposed to be assessed, the proposed proceeding shall be abandoned or modified so that the amount to be specially assessed for the cost of the acquisition or improvement will be less than the limits hereby established, unless the excess of the cost and indebtedness over one-half of the true value shall be paid from some source other than by special assessment on the parcels, or unless the limitation is overruled.
Part 5DEBT LIMITATIONS
Section § 2900
If a report shows that the cost charged to a property for a new acquisition or improvement is more than half of the property's actual value, the plan must be stopped or changed unless other funding covers the excess or specific exceptions apply. This is also true if the total cost, minus any outside funding, of all similar unpaid projects is more than half of all properties' values involved.
property assessment true value of parcel special assessments acquisition cost improvement cost report findings abandon proceeding modify assessment unpaid assessments property valuation limit funding sources cost limitation excess cost indebtedness limit assessment modification
Section § 2901
If the final cost of an improvement project goes over the initial estimated cost (plus extra expenses) by more than 10%, the extra amount above that 10% cannot be charged to the property owners involved in the project.
If the total cost of any improvement, including incidental expenses but excluding the actual cost of the acquisition of any property, exceeds the total estimated cost including incidental expenses, as stated in the report and the separate estimate for changes, if any, in the things to be done as filed with the clerk, by more than one-tenth of such estimated cost, no part of the excess over said one-tenth shall be assessed upon the lands to be assessed in the proceeding.
improvement cost exceeding estimate incidental expenses property assessment limit excess costs overestimated improvement costs cost ceiling on improvements financial responsibility for improvements limiting property owner charges project cost assessment rules estimated versus actual costs financial protection for property owners
Section § 2902
This law says that when the cost of a new improvement or acquisition, after deducting contributions from other sources, is greater than half of the total value of all the properties benefiting from it, you cannot charge the excess cost to those properties as a special assessment.
If the total cost including incidental expenses of any acquisition or improvement, less any amount to be paid toward the cost from any source other than special assessment upon the parcels benefited thereby, when added to the aggregate totals of all assessments and estimated assessments as stated in the report, exceeds in total amount one-half of the total true value stated in the report of all the parcels to be assessed to pay any part of the cost of the acquisition or improvement, no part of the excess shall be assessed upon the parcels.
special assessment property value incidental expenses property improvement cost acquisition cost limit excess cost prohibition benefited parcels cost contribution total true value assessment limit improvement funding assessment restrictions excess cost assessment improvement cost evaluation property assessment cap
Section § 2903
This law section explains that if the cost of a project or improvement is more than what can be charged to nearby properties benefiting from it, the local government can use its funds to cover the extra cost. Any remaining cost will be distributed to the properties based on a special assessment process.
If the estimated or actual cost including incidental expenses of any acquisition or improvement exceeds the amounts that may be specially assessed upon benefited property, the legislative body may provide for the payment of such excess cost from any available funds under its control and the balance shall then be specially assessed in accordance with the statute under which the proceeding is conducted.
excess cost property assessment legislative body benefited property special assessment incidental expenses project funding municipal funds funding shortfall cost distribution local government spending infrastructure costs public project financing
Section § 2904
When a contract for improvements like roads or infrastructure is awarded, and the cost of the project is higher than what can be charged to property owners benefiting from it, the extra costs must be covered by the city's or county's general funds or any available funds. These additional necessary funds then cover the shortfall before the leftover costs are distributed among the benefiting properties as special assessments.
If the properties benefiting from the project fall under multiple jurisdictions and all have agreed to the project, any of those jurisdictions can use their own funds to cover part of the excess cost. This contribution is then paid into the fund of the primary city, county, or district managing the project expenses.
Whenever an improvement contract has been awarded, the county or city or district or other public corporation, the legislative body of which is conducting the proceeding, shall, if the actual cost of the improvement, including incidental expenses, exceeds the amount that may be specially assessed upon benefited property, pay such excess cost from the general or any fund available and the balance shall be specially assessed under the statute under which the proceeding is conducted.
If the property to be specially assessed is within the jurisdiction of more than one legislative body and consents to such proceeding have been given by all the legislative bodies having jurisdiction, any such legislative body whose consent has been so given may appropriate all or any part of such excess cost from any available funds under its control, and may pay the amount so appropriated into the treasury of the county or city or district or other public corporation whose legislative body has jurisdiction over the proceeding to be applied in payment of such excess.
improvement contract special assessment excess cost general fund benefited property multiple jurisdictions incidental expenses property owners public corporation infrastructure projects consent of legislative bodies jurisdictional funds legislative body control appropriation of funds payment of excess cost
Section § 2905
This law states that if a legislative body decides, with a strong majority vote, that a proposed project is doable and that the landowners can handle the financial assessment for it, they can ignore the usual limits on how much they can charge for assessments. However, if most of the landowners affected file written protests, the usual limits still apply, unless specified otherwise. Any decision by the legislative body to ignore these limits is final unless there is proven fraud.
Notwithstanding anything in this division, if the legislative body conducting the proceedings, after the report or reports provided for in this division have been filed and considered and prior to the adoption of the ordinance or resolution ordering the acquisition or improvement, finds by a four-fifths vote of all members thereof entered upon its minutes that the proposed project is feasible and that the lands to be assessed will be able to carry the burden of such proposed assessment, the limitations on the amounts of assessments provided for in this part may be disregarded, both with respect to the limitation on the district as a whole and as to the limitation on individual specific assessments. If the legislative body makes such a finding none of the limitations upon the amounts of assessments contained in this division shall thereafter apply to any assessment or assessment proceedings thereafter had or taken. However, if at the hearing on the report protests in writing are filed as provided in Section 2856 by the owners (as defined in the law under which the acquisition or improvement proceedings are to be taken) of a majority in area of the lands to be assessed, such limitations shall not be exceeded except as to proceedings had under Section 2932. A finding and determination by the legislative body that the limitation on assessments herein provided may be disregarded shall be final and conclusive upon all persons in the absence of actual fraud.
legislative body vote project feasibility land assessment burden assessment limits disregard written protests landowner majority final decision absence of fraud proceedings limitations Section 2856 protests Section 2932 proceedings financial assessments land improvement acquisition proceedings
