Subject:
Title
Resolution Calling for Referendum Election Regarding a Non-Ad Valorem Special Assessment for Road Paving in Canaveral Groves (District 1)
End
Fiscal Impact:
None.
Dept/Office:
District 1 Commission Office
Requested Action:
Recommendation
It is requested that the Board of County Commissioners approve a resolution calling for a local referendum election concurrent with the November 2024 general election to determine if a non-ad valorem special assessment shall be levied to fund the paving of certain County-maintained dirt roads in Canaveral Groves.
End
Summary Explanation and Background:
On April 24, 2024, the Board of County Commissioners directed the County Attorney to prepare a resolution calling for a local referendum election to determine if a non-ad valorem special assessment shall be levied to fund the paving of certain County-maintained roads in Canaveral Groves. The Board also directed staff to estimate the costs of the road paving project, evaluate financial options, and approximate the amount of the assessment upon benefitted properties.
Based on currently available preliminary cost estimates and 20-year financing at the rate of 4%, the annual per parcel assessment is projected to be approximately $1,500 per year, or $30,000 over 20 years. Actual assessment rates may vary depending on the apportionment methodology to be approved by the Board at a future date, changes in construction cost estimates during the design phase, and other factors. The following ballot language is proposed for the referendum election:
REFERENDUM TO DETERMINE WHETHER TO PAVE CERTAIN UNPAVED ROADS THROUGH THE LEVY OF NON-AD VALOREM SPECIAL ASSESSMENTS.
Shall the Board of County Commissioners of Brevard County, Florida, be authorized to levy a non-ad valorem special assessment to pave certain County-maintained unpaved roads within Canaveral Groves at an estimated annual assessment amount of $1,500 per parcel over twenty (20) years beginning in 2025, such assessment to be levied only upon parcels abutting or otherwise receiving a special benefit from the road paving project?
___ YES, FOR THE NON-AD VALOREM ASSESSMENT
___ NO, AGAINST THE NON-AD VALOREM ASSESSMENT
Section 5.4.1 of the Brevard County Home Rule Charter prohibits the County from levying new non-ad valorem special assessments without the approval of the electors residing within the boundaries of the district where they are proposed to be levied at a general election or special election called for approval of the assessment. This requirement excludes Municipal Service Benefit Units, and thus would not apply if the special assessment is implemented via a Board-created MSBU. However, even if not required, the referendum result could be treated as a non-binding referendum within the area where the MSBU is to be established.
If the Board adopts the proposed resolution and if a majority of electors voting approve the special assessment, staff will initiate the process for utilizing the uniform method for the levy, collection, and enforcement of non-ad valorem assessments set forth in section 197.3632, Florida Statutes. That process will require mailed advertisements, public hearings, and future Board action to implement the assessment.
There are miles of County-maintained unpaved roads in the Canaveral Groves area. Property owners in the area would benefit significantly from the paving of these roads. Generally, it is less expensive for the County to maintain paved roads than unpaved roads. The unpaved roads that are the subject of the proposed resolution and referendum election are:
|
Cangro Street (west of Tangerine Street) |
Tangerine Street |
|
Osprey Street (south of Cangro Street) |
Oxbury Avenue |
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Tapscott Avenue |
Kumquat Avenue |
|
Papaya Street |
Oxeye Avenue |
|
Tokay Avenue |
Lemon Street |
|
Vacaro Avenue |
Shadwell Avenue |
|
Paddington Street |
Navel Street |
|
Valdine Avenue |
Scarlett Avenue |
|
Lambros Street |
Jake Avenue |
|
Ocala Street |
Simpson Place (Jake Ave. to Ocala St.) |
|
Banana Avenue |
Calamondin Avenue |
|
Palm Avenue |
Grapehill Street |
|
Newburn Street |
Showdow Street |
|
Temple St. (Showdow St. to Citrus Blvd.) |
West Little Court |
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East Little Court |
Seville Avenue |
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Bahia Street (south of Seville Avenue) |
Erica Street |
|
|
Sheridan Avenue |
The County has a Municipal Service Benefit Unit (MSBU) program in place that provides residents in already developed and established communities with a funding mechanism for specific infrastructure improvements such as road paving, water, and sanitary sewer line installation. The MSBU program allows residents to request improvements and finance them at a generally low interest rate through a cooperative relationship with the County. This process requires a citizen-initiated petition and the affirmative vote of at least 66.66% of the affected property owners. In an area such as Canaveral Groves with many unpaved roads, it can be a piecemeal process and result in unsystematic, inefficient partial measures taken over a long period of time.
Another mechanism to fund the retrofitting of existing developments is for the Board of County Commissioners to implement a non-ad valorem special assessment. This would also involve the creation of a municipal services benefit unit, but not through the petition initiated MSBU program. Instead, the special assessment process would be commenced upon the approval of a simple majority of the electors residing within the boundaries of the district where the assessment is proposed to be levied at a referendum held concurrently with the November general election.
Special assessments are a Home Rule revenue source available to the County to fund all or some portion of the costs of capital improvements or essential services. Road paving and improvement projects may be funded through special assessments. There are two basic requirements under Florida law for a valid special assessment:
1. The assessed property must receive a special benefit; and
2. The assessment must be fairly and reasonably apportioned.
Special Benefit
Each assessed property must receive a special benefit from the improvement or service funded by the assessment. The special benefit can include an increase in the property’s market value, or heightened use and enjoyment of the property.
Properties abutting a street paving project are presumed to receive a special benefit from the project. As the Florida Supreme Court explained, “The whole theory of special assessments for improvements is based upon the doctrine that the property against which the assessment is levied derives some special benefit from the local improvement. In the matter of street paving, it is presumed or assumed that all property abutting on a street to be improved will or may be benefited, and upon that theory such special assessments are permitted without having to establish that the property will be benefited.” Atlantic Coast Line R. Co. v. City of Gainesville, 91 So. 118, 283-84 (Fla. 1922). Therefore, the proposed special assessment would be assessed only against properties abutting or otherwise directly benefitting from the road paving program.
Fair and Reasonable Apportionment
The assessment must be fairly and reasonably apportioned among the properties receiving the special benefit. The assessment rate must be based on the special benefit accruing to each property in the benefit unit. The Board has wide discretion in choosing an apportionment method that best meets local needs and is not required to follow a statutory formula. Assessments can be allocated by any method so long as the Board determines the method is fair and reasonable. Assessment methodologies can be based upon, but are not limited to, the following:
• Property frontage (typically in linear feet).
• Platted lot.
• Buildable lot.
• Square footage
• Any combination of these methods deemed to be equitable by the Board.
Clerk to the Board Instructions:
Please provide a copy of the executed Resolution and Clerk’s Memorandum to the Supervisor of Elections, the District 1 Commission Office, the County Manager’s Office, and the County Attorney’s Office.