40-23 Assessment of Benefits

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CHAPTER 40-23ASSESSMENT OF BENEFITS40-23-01. Special assessment commission - Appointment of members - Terms ofoffice. The executive officer of each municipality, when it shall be found necessary, shall appoint<br>three reputable residents and freeholders of the municipality as members of a commission which<br>shall be known as the special assessment commission. The members appointed to the first<br>special assessment commission in a municipality shall hold office, respectively, for terms<br>designated by the executive officer when the appointments are made, as follows:1.One member shall hold office until the first meeting of the governing body in April in<br>the first odd-numbered year following that member's appointment.2.One member shall hold office until the first meeting of the governing body in April in<br>the second odd-numbered year following that member's appointment.3.One member shall hold office until the first meeting of the governing body in April in<br>the third odd-numbered year following that member's appointment.At the first meeting of the governing body in April of each odd-numbered year, or as soon<br>thereafter as practicable, the executive officer shall appoint a member of such commission. After<br>the members of the first special assessment commission have been appointed as provided in<br>this section, each appointment shall be made for a term of six years.40-23-02. Commissioners - Appointments subject to confirmation - Qualifications -Chairman - Compensation. All appointments made to the special assessment commission<br>shall be subject to the confirmation of the governing body. Upon appointment and confirmation,<br>each commissioner shall file with the city auditor a written acceptance of the appointment and<br>shall take and subscribe the oath required of other municipal officers, which shall be filed with the<br>city auditor. The member of the commission having the shortest term to serve shall act as<br>chairman. No member of the commission shall hold any other municipal office while serving as<br>such member. Each member of the commission shall receive such suitable compensation for<br>the member's services while actually engaged in the duties of the commission as determined by<br>the governing body.40-23-03.Removal of commissioners - Filling vacancies.Any member of thecommission may be removed by the executive officer, with the consent of a majority of the<br>members of the governing body, for neglect or refusal to perform the duties of the office or for<br>misconduct in office. A vacancy occurring in the commission by removal, resignation, or death<br>shall be filled by appointment by the executive officer as soon as practicable after the vacancy<br>occurs.40-23-04. Municipal officers and employees to advise commission. Each officer andemployee of the municipality shall give to the special assessment commission such information,<br>advice, and assistance as it may request.40-23-05. Notice to special assessment commission. At any time after the contractand bond for any work for which a special assessment is required have been executed and<br>approved by the governing body of the municipality and the total cost of such work shall have<br>been estimated as nearly as practicable, the governing body may direct assessments to be<br>levied for the payment of all or any part of such cost, and the city auditor shall notify the chairman<br>of the special assessment commission and shall certify to the chairman the items of the total cost<br>thereof so far as the same have been ascertained.The chairman immediately shall call ameeting of the commission, which shall proceed as expeditiously as possible to make and return<br>the special assessment as provided in this chapter. The total cost of the improvement which<br>may be certified to the assessment commission shall include the estimated construction cost<br>under the terms of the contract, a reasonable allowance as determined by the governing body for<br>cost of extra work which may be authorized under the plans and specifications, engineering,Page No. 1fiscal agent's and attorney's fees for any services in connection with the authorization and<br>financing of the improvement, cost of publication of required notices and printing of improvement<br>warrants, and all expenses incurred in the making of the improvement and levy of assessments<br>therefor.If any error is made in estimating the cost, the governing body may direct asupplemental assessment to be made as provided in section 40-26-02.40-23-06. Assessments in improvement districts before work completed. If thework consists of improvements on or additions to sewers or water mains already installed or<br>paving already laid, and all bids for such work were rejected and the work done by the<br>municipality, and if, in the opinion of the engineer acting for the municipality, the work can be<br>done in separate sections or work units, it shall not be necessary that all of the work be<br>completed before the special assessments are made.The governing body, by resolutionadopted at any time before or after the work has been commenced, may specify what part of the<br>improvements shall constitute a separate section or work unit, and upon completion of the work<br>in one or more of such separate sections or work units, the special assessments may be made in<br>the same manner and with the same force and effect as if all of the work in the entire<br>improvement district had been completed. Failure for any reason to complete the work in any<br>remaining separate section or work unit included within such improvement district shall not affect<br>the validity of the special assessments made or the special assessment warrants issued for the<br>work completed.40-23-07.Determination of special assessments by commission - Politicalsubdivisions not exempt.Whenever the commission makes any special assessment, thecommission shall determine the particular lots and parcels of land which, in the opinion of the<br>commission, will be especially benefited by the construction of the work for which the<br>assessment is to be made. The commission shall determine the amount in which each of the<br>lots and parcels of land will be especially benefited by the construction of the work for which such<br>special assessment is to be made, and shall assess against each of such lots and parcels of land<br>such sum, not exceeding the benefits, as is necessary to pay its just proportion of the total cost of<br>such work, or of the part thereof which is to be paid by special assessment, including all<br>expenses incurred in making such assessment and publishing necessary notices with reference<br>thereto and the per diem of the commission.However, as an alternative to the procedureprovided in this section, the special assessment commission may, in its discretion, determine<br>and allocate the cost of special assessments in accordance with the method provided for in<br>chapter 40-23.1. Property owned by a nonprofit entity and used exclusively as a cemetery is<br>exempt from collection of special assessments for benefits conferred under this title and the city<br>in which such property is located shall provide for the payment of special assessments,<br>installments, and interest against such property by the levy of taxes according to law or by<br>payment from other funds available to the city which are derived from sources other than special<br>assessments. Benefited property belonging to counties, cities, school districts, park districts, and<br>townships is not exempt from such assessment, and such public corporations whose property is<br>so assessed shall provide for the payment of such assessments, installments thereof and<br>interest thereon, by the levy of taxes according to law. Nothing in this section may be deemed to<br>amend other provisions of law with reference to the levy of assessments on property sold for<br>delinquent taxes.40-23-07.1. Validation of prior assessments. Repealed by omission from this code.40-23-07.2.Assessment of common area in townhouse development.If atownhouse development includes a right in the townhouse owners to use any lot or tract as a<br>common area in connection with the townhouse development, the common area shall not be<br>separately assessed for benefits but each lot or tract whose owner has a right to use the<br>common area shall be assessed for the benefit to the common area in the proportion that each<br>owner's right in the common area bears to all of the owners' rights in the common area.40-23-08. Assessments collected by suit from beneficial user of exempt property.Whenever any real property is exempt from special assessments, or cannot be assessed, as<br>provided in this title, for any improvement for any reason, and such real property otherwise would<br>be assessable for such improvement, an assessment may be levied against the occupant orPage No. 2beneficial user of the property and collected by suit from the occupant or person enjoying the<br>beneficial use thereof.40-23-09.Assessment list to be prepared - Contents - Certificate attached toassessment list.The commission shall make or cause to be made a complete list of thebenefits and assessments setting forth, by legal description or street address or both, each lot or<br>tract of land assessed, the amount each lot or tract is benefited by the improvement, and the<br>amount assessed against each. There must be attached to the list of assessments a certificate<br>signed by a majority of the members of the commission certifying that the same is a true and<br>correct assessment of the property therein described to the best of their judgment and stating the<br>several items of expense included in the assessment.40-23-10. Notice of assessments and notice of hearing of objections.1.Unless otherwise provided under this section, the commission shall cause the<br>assessment list, which list may not include the amount each lot or tract is benefited<br>by the improvement, to be published once each week for two consecutive weeks in<br>the official newspaper of the municipality.2.If the assessment list includes more than five thousand lots or tracts, the<br>commission may cause it to be filed and made available for public inspection at all<br>times after the first publication of the notice, during reasonable business hours, at<br>such place as must be designated in the published notice.3.As an alternative to the notice procedures provided in subsections 1 and 2, the<br>commission shall send a letter to all property owners of record on the assessment<br>list stating their assessments. The letter may be sent by certified mail or by regular<br>mail attested by an affidavit of mailing signed by the city auditor. When notice is<br>provided under this subsection, the commission shall cause publication of a map<br>outlining the assessment district with a notification stating that if an individual has not<br>yet received a letter regarding that individual's assessment, the individual should<br>furnish the city auditor's office with the individual's present address and the auditor<br>will then mail a copy of the individual's assessments.4.The date set for such hearing must be not less than fifteen days after the first<br>publication of the notice.5.A copy of the notice must be mailed to each public utility having property on the<br>assessment list at least ten days before the hearing to its address shown on the tax<br>rolls.6.Any notice under this section must include the time and place of a commission<br>meeting to hear objections to assessments from an interested party or an interested<br>party's agent or attorney.40-23-11. Alteration of assessments at hearing - Limitations. At the hearing, thecommission may make such alterations in the assessments as in its opinion may be just or<br>necessary to correct any error in the assessment list. The commission may increase or diminish<br>any assessment as may be just and necessary to make the aggregate of all assessments equal<br>to the total amount required to pay the entire cost of the work for which such assessments are<br>made or the part of such cost to be paid by special assessment. No assessment shall exceed<br>the benefits as determined by the commission to the parcel of land assessed.40-23-12. Confirmation of assessment list after hearing - Filing list. The specialassessment commission, after the hearing, shall confirm the list and attach thereto its further<br>certificate certifying that the list is correct as confirmed by it. The commission thereafter shall file<br>the assessment list in the office of the city auditor.Page No. 340-23-13. Publication of notice of confirmation of assessment list and meeting foraction upon assessments. The city auditor shall publish at least once in the official newspaper<br>of the municipality a notice stating that the assessment list has been confirmed by the special<br>assessment commission and filed in the city auditor's office and is open to public inspection. The<br>notice also shall state the time when and the place where the governing body will act upon such<br>assessment list. The assessment list shall be acted upon by the governing body at a regular or<br>special meeting occurring more than fifteen days after the publication of such notice.40-23-14. Aggrieved person may file notice of appeal. Prior to the meeting at whichthe governing body will act upon the assessment, any aggrieved person may appeal from the<br>action of the special assessment commission by filing with the city auditor a written notice of the<br>appeal, stating therein the grounds upon which the appeal is based.40-23-15.Governing body to hear and determine appeals and objections toassessments - Altering assessments - Limitations. At the regular or special meeting of the<br>governing body at which the assessment list is to be acted upon, any person aggrieved by the<br>determination of the special assessment commission in regard to any assessment who has<br>appealed therefrom as provided in section 40-23-14 may appear before the governing body and<br>present the person's reasons why the action of the commission should not be confirmed. The<br>governing body shall hear and determine the appeals and objections and may increase or<br>diminish any of such assessments as it may deem just, except that the aggregate amount of all<br>the assessments returned by the commission shall not be changed and no assessments as<br>adjusted shall exceed the benefits to the parcel of land on which it is assessed as determined by<br>the assessment commission.40-23-16. Confirmation of assessment list by governing body - Certifying and filinglist. The governing body shall confirm the assessment list. The city auditor shall attach to the<br>list the city auditor's certificate that the list is correct as confirmed by the governing body and then<br>shall file the list in the city auditor's office.40-23-17. Authority to levy assessments on property not originally assessed. Anymunicipality that pays or provides for the payment of part or all of the cost of an improvement<br>may subsequently levy special assessments for the cost of the improvement upon properties<br>benefited by the improvement in the cases and in accordance with the procedure and subject to<br>the conditions set forth in sections 40-23-17 through 40-23-21.40-23-18.Assessments on property within the corporate limits.A subsequentassessment may not be levied for any improvement on any property that was within the<br>corporate limits of the municipality on the date of the execution of the first contract for any part of<br>the improvement, unless a special improvement district was originally created for the<br>improvement, and the property on which the subsequent assessment is to be levied was not<br>originally assessed for the improvement but is subsequently included within another<br>improvement district created to finance an improvement that will be connected directly or<br>indirectly with the original improvement. Assessments under this section may be included in a<br>separate column in the special assessment list prepared for the improvement district and levied<br>upon the properties included in the district at the same time and upon the same notices and<br>hearings as provided by law for the other assessments. A resolution determining the necessity of<br>the improvement must have been adopted in the manner prescribed by law, referring to the<br>designation of the district created for the original improvement and stating that a portion of the<br>cost of the improvement is proposed to be assessed upon property within the improvement<br>district.40-23-19. Assessments on annexed property for previous benefits. Any propertythat was outside the corporate limits of the municipality at the time of contracting for an<br>improvement, which is benefited by the improvement and is subsequently annexed to the<br>municipality, may be assessed for the improvement subject to the same conditions and by the<br>same procedure as provided in section 40-23-18. The property that is benefited may also be<br>assessed for any improvement, within or outside the corporate limits, which is determined by the<br>governing body and the special assessment commission to benefit property that was outside thePage No. 4corporate limits at the time of contracting for the improvement, whether or not an improvement<br>district was previously created for the improvement. For this purpose, the governing body may<br>create one or more improvement districts comprising all or part of the annexed territory. The<br>governing body may provide for the levy of special assessments upon such property in the<br>manner provided in this title, but may dispense with the requirements of this title as to the<br>adoption of a resolution of necessity and the advertisement and award of a contract for the<br>improvement. Assessment proceedings under this section are valid notwithstanding any failure<br>of the previous proceedings to comply with the provisions of law regarding improvements to be<br>financed by special assessments.The governing body may use a reasonable depreciationschedule for the improvement in determining the amount of any special assessment<br>subsequently levied under this section.40-23-20.Equalization of original assessments.In any assessment proceedingsunder sections 40-23-17 through 40-23-21 the governing body of the municipality shall have<br>power to direct the cancellation of uncollected installments of special assessments previously<br>levied for the same improvement, and the refund of installments prepaid, to the extent<br>determined by it to be necessary to make the original assessments and the subsequent<br>assessments bear as nearly as possible the same relation to the total benefits derived from the<br>improvement by the respective properties assessed.40-23-21. Use of collections of subsequent assessments. All collections of specialassessments levied pursuant to sections 40-23-17 through 40-23-21 shall be credited as<br>received to the special fund maintained by the municipality for the payment of any outstanding<br>special improvement warrants, refunding improvement bonds, general obligation bonds, or<br>revenue bonds which were issued to finance the improvement for which the assessments were<br>levied, or, if no such obligations are outstanding, to such fund as the governing body may direct.40-23-22.State property subject to special assessments.Real estate withinmunicipalities of this state owned by the state of North Dakota, other than for highway<br>right-of-way purposes, may be subjected to special assessments for special improvements when<br>benefited by such improvement and the state agency or department having control thereof is<br>hereby authorized to expend public funds in payment of such special assessments.40-23-22.1. City flood control special assessment exemption for state property -Limitations.1.Notwithstanding any other provision of law, property of the state in a city subject to<br>this section is exempt from special assessments levied for flood control purposes.<br>Upon request by the governing body of the city, the exemption under this section<br>may be completely or partially waived by majority vote of the budget section of the<br>legislative management. A city is subject to the exemption under this section in<br>recognition of state financial assistance for flood control provided to the city pursuant<br>to section 61-02.1-01 or other appropriation or commitment of state funds.2.The exemption under this section does not apply to any privately owned structure,<br>fixture, or improvement located on state-owned land if the structure, fixture, or<br>improvement is used for commercial purposes unless the structure, fixture, or<br>improvement is primarily used for athletic or educational purposes at a state<br>institution of higher education. An assessment allowed under this subsection must<br>be based on the square footage or front footage of the land occupied by the<br>structure, fixture, or improvement and made against the structure, fixture, or<br>improvement and not against the land on which it is located.40-23-23. Assessments for parking improvements. For any improvement consistingof acquiring or leasing of property and easements and construction of parking lots, ramps,<br>garages, and other facilities for motor vehicles, whether constructed pursuant to chapter 40-22,<br>40-60, or 40-61 or other law authorizing a municipality to acquire facilities used and usable in<br>connection with the parking and storing of motor vehicles, the governing body of the municipality,<br>on or before October first in any year, may cancel all installments of special assessmentsPage No. 5theretofore levied for such facilities which are due and payable in the following year and all<br>subsequent years, and may levy a new assessment for such facility in accordance with the law<br>authorizing the initial levy of special assessments therefor, except that the amount to be newly<br>assessed shall not exceed the total principal amount of the installments of assessments so<br>canceled. The new assessment shall follow the same district lines as the original assessment<br>district, and the same method of assessment shall be used as was used in the original<br>assessment. If the new assessment causes any prepaid payment to be refunded, the refund<br>plus four and one-half percent interest per annum on the refunded prepaid payment shall be paid<br>to the person, corporation, or limited liability company who prepaid the original assessment. In<br>determining the special benefit and levying the new assessment against any lot or parcel, the<br>previous determination of special benefit in any previous proceeding shall not be binding upon<br>the assessment commission or governing body, but the new assessment levied on any lot or<br>parcel, together with the principal amount of the installments of special assessments previously<br>paid or to be paid in the current year for that lot or parcel with respect to that facility to be<br>assessed, if any, shall not exceed the total special benefit to the lot or parcel from the facility for<br>which the assessment is levied.In levying new assessments pursuant to this authority, anassessment commission and governing body of a municipality may take into account any<br>changes in conditions affecting the benefits derived and to be derived from the improvement for<br>which the assessments were initially levied against the respective properties assessed.<br>Provided, however, that in canceling any special assessments previously levied and in levying<br>new special assessments, a municipality cannot violate any covenants or agreements which it<br>has made with holders of any obligations issued by the municipality to finance the acquisition of<br>that improvement.40-23-24. Audit of certain special assessment improvements. If the costs of animprovement determined and assessed under section 40-23-07 or 40-23.1-04 exceed the costs<br>of the work as contained in the engineer's estimate under section 40-22-10 by seventy percent or<br>more, the governing body of the city shall secure an audit of all costs included in the assessment<br>for the project, prepared in accordance with generally accepted auditing standards. The audit<br>report must include a separate statement of the engineer's estimate of the cost of the work, the<br>actual cost of the work, the cost of extra work, engineering fees, fiscal agent's fees, attorney's<br>fees, publication costs, warrant printing costs, interest costs, and each separate item of expense<br>incurred in making the improvement and levying the assessment for the improvement. The city<br>shall make a copy of the audit report available without charge to any person who requests a<br>copy. The audit report is not required if the costs of an improvement exceed the costs of the<br>work as contained in the engineer's estimate by seventy percent or more because of a petition to<br>enlarge the district under section 40-22-09 or a request for additional work within the district by<br>the owners of a majority of the area of the property in the district. Audit and copying expenses<br>under this section must be paid by the city and may not be paid from special assessment funds.40-23-25.Future assessments on annexed property.The special assessmentcommission shall prepare and file with the city auditor a list of estimated future assessments on<br>property located outside the corporate limits of the city at the time of contracting for an<br>improvement but which the special assessment commission determines is potentially benefited<br>by the improvement and likely to be annexed to the city.Page No. 6Document Outlinechapter 40-23 assessment of benefits