Legal Documents of Baneberry

Code of Baneberry

Table of Contents » Title 2 Boards and Commissions, etc. » Chapter 1 Road Commission And Road Policy » § 2-107 Computing special assessments.
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Title 2, Chapter 1
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Baneberry
Title 2 : Boards and Commissions, etc.
Chapter 1 : Road Commission And Road Policy

2-107 : Computing special assessments.

  1. One hundred percent (100%) funding by affected lot owners. Pursuant to Tennessee Code Annotated, § 7-32-118, property owners petitioning the city to make any improvements as authorized under Tennessee Code Annotated, title 7, chapter 32 shall bear the entire cost of said improvement or construction. Thus, in the event a petition is presented to the city council averring the willingness of each of the signers to pay their pro rata share of the entire cost of any improvement such as is authorized by Tennessee Code Annotated, title 7, chapter 32 of and relieves the municipality from the payment of any part or parts thereof, which petition is signed by the owners of at least seventy-five percent (75%) of the frontage of the lots or parcels of land abutting on such street, highway, or alley or parts thereof, proposed to be thus improved, such petition may be granted by the legislative body; and then proceedings may be had under chapter of the Tennessee Code Annotated, title 7, chapter 32 the same in all respects as if the improvement had been begun by the legislative body on its own initiative. Bonds may be issued and assessment shall be made, except that the assessments shall, in such event, be made for the entire cost of the improvement, and bonds may be issued for the entire cost; provided that no assessment under this section shall in any event exceed on any lot one-half (1/2) of the assessed value of the unimproved lot for municipal taxes for the current year, and all other provisions Tennessee Code Annotated, title 7, chapter 32 shall be applicable in respect of any improvement made under Tennessee Code Annotated, § 7-32-118, except as in this section otherwise expressly provided.

  2. Sixty-six percent (66%) funding by affected lot owners. Following a request for improvement, a study and recommendation by the road commission, approval by the city council, public notice, and meetings as set out in § 2-106(1)(j) above; all lot owners may be assessed a two-thirds (2/3) percentage of the total cost of the improvements calculated as a percentage of the unimproved property values of all lots on the subject street.

    A lot owner's share is calculated as a percentage of the total appraised value of the unimproved real property of all lots on the right-of-way to be improved by a road and/or utility project. The municipality pays the remaining one-third (1/3) of the project's cost.

    Example:

    1. The current tax appraised value of the total real property, not including improvements of five (5) example properties on a proposed project street, is three hundred and forty thousand dollars ($340,000.00) and the estimated cost of this example project is one hundred and twenty-five thousand dollars ($125,000.00).

    2. The current tax appraised value of the real property, not including improvements of each of the five (5) properties shown in the first column is divided by the total value of all five (5) benefitting properties to obtain a per-property percentage of the total property values as shown in the column, "% of total."
    3. The estimated project cost one hundred and twenty-five thousand dollars ($125,000.00) is multiplied by each property owner's percentage to obtain an estimated special assessment calculation, representing one hundred percent (100%) of the project.
    4. Each individual calculated special assessment is divided by three (3) then multiplied by two (2) to derive each owner's two-thirds (2/3) share (the amount each lot owner will be specially assessed).
    5. Lot owners can only be assessed up to fifty percent (50%) of their current tax appraised value of the real property, not including improvements, per Tennessee Code Annotated, § 7-32-116.
      1. The aggregate amount of the levy or assessment made against any lot or parcel of land shall not exceed one half (1/2) of the cash value of the unimproved lot.
      2. By cash value, it is the intent of this section to mean the fair sale price of the lot minus the value of improvements on the lot if sold at a voluntary sale.

      3. The city or town may pay any part of the levy or assessment against any such lot or parcel of land as may be in excess of one half (1/2) of the cash value of the lot or parcel of land.

        With only five (5) benefitting property owners in this example, the individual costs would most likely be prohibitive. However, individual costs go down as the number of benefitting properties increases.

    6. Total cost shall, at a minimum, include, but is not limited to: all surveying, engineering, site planning, tree removal and disposal, excavation, filling, spoil removal, topsoil management, soil erosion and sediment control, infrastructure material and equipment, road materials, bridges, culverts, drain tile laterals, storm drains, outfalls, guard rails, land restoration, signage, utility, administration, labor, insurance, and applicable bond and loan fees.
    7. Any roads project exceeding fifty thousand dollars ($50,000.00) must be planned by a professional engineering and design firm, competitively hired by the city.
  3. Methods not exclusive. No provision of this section or the policies described herein shall be construed to limit or restrict the city council's discretion, authority or powers to utilize or proceed under any other method of assessment.
  4. Payment 
    1. Special assessments are due thirty (30) days after completion of the project and may be paid in full or in six (6) annual payments. No interest will be charged if assessments are paid in full within thirty (30) days after the official completion date of the project.
    2. Payment of special assessment may be made in six (6) annual payments amortized over a five (5) year period at six percent (6%) interest, the first payment due thirty (30) days after completion of the project, and on or before that date, each successive year.
    3. An account will be declared delinquent if a payment is not paid within sixty (60) days past a due date, and the entire balance of the account will become due.
    4. A payment bond will be required from property owners wishing to finance over three (3) properties. (Ord. #215-12, Dec. 2015)