Okaloosa County BOCC — March 4, 2014 — reading text

Packet Pg. 478 from the data base maintained by his office such as owner's name, address, value of the property, front footage, size and type of structures, as well as section maps detailing the proposed district etc. Role of the Tax Collector The Tax Collector's Office is responsible for the annual billing for collection of non-ad valorem assessments based on the information transmitted to his office. The information transmitted to the Tax Collector is prepared by the County Staff. For non-ad valorem assessments, the transfer of this information to the Tax Collector must be completed no later than September 15 of each year to be included in the Uniform Tax bills mailed in November. The Board of County Commissioners is responsible for the payment of actual cost incurred by the Tax Collector in billing the non-ad valorem Assessments. The Tax Collector is responsible for the collection of delinquent non-ad valorem assessments. The Tax Collector is responsible for the sale of tax deeds on ad valorem and non-ad valorem special assessments. Role of the Clerk of the Circuit Court The Clerk of the Circuit Court is responsible for recording and administering liens on unpaid non-ad valorem assessments. Policy Highlights The funds raised are public funds and must be collected, accounted for and spent in accordance with applicable laws regarding public funds. Only public property can be maintained and improved by a MSBU; access must be open to all members of the public equally. In addition, adequate easements or property dedications must be provided if needed. Okaloosa County may establish MSBUs within municipalities upon the approval of the respective city government in accordance with Florida Statutes 125.01(1)(p).  A petition process is used in establishing MSBU's to ensure community awareness and involvement in the decision-making process. This also increases recognition of the public nature of the improvements and the responsibility of property owners for payment of the assessments. - The minimum percentage required for the petition is as follows: 1. 66% of the property owners representing 66% of the property for a capital improvement MSBU. 2. 51% of the property owners representing 51% of the property for a service or street lighting MSBU. 2 Packet Pg. 479   Cost estimates are available at the time of obtaining petition signatures to aid provision of complete information. - The Public Works Engineering Division will provide appropriate preliminary engineering in order to obtain valid preliminary cost estimates for construction projects.  Design and construction work for capital projects is done by County staff, contingent upon approval by the Board of County Commissioners, up to the financial limits as set forth by Florida State law. Projects exceeding the statutory limits or staffing capabilities of the County will be competitively bid out for design and/or construction. Street lights are installed and subsequently maintained by the appropriate power provider.  Separate accounts are maintained for each district.  An additional petition and public hearing is required prior to beginning construction of any capital project if the total project cost estimates increase 20% or more above the estimate included in the initial petition required to establish the district.  Designation of a liaison by each district is important for maximum neighborhood input and on-going coordination between the community and the County. In addition, a central County staff contact is designated for each project.  The district liaison is authorized to request minor changes that may be needed over time. Minor changes, are defined as those which represent an estimated increase in total annual cost / assessments of no more than 10%. These requests are then presented at a Public Hearing to allow opportunity for public input, and approval/disapproval by the Board of County Commissioners. General Guidelines for Establishing New MSBU Districts STATUTORY AUTHORITY Chapter 125.01(q)1 of the Florida Statutes authorizes the Board of County Commissioners to provide for the establishment, merging, or abolishment of municipal services taxing (MSTUs) or benefit units (MSBUs) on any part or all of the unincorporated area of the county. It also provides for a County MSTU or MSBU to include all or part of a municipality subject to consent by ordinance of the governing body of the municipality. The law permits such districts to be created for the purpose of providing and maintaining facilities or services which specifically benefit property owners in a particular area. The facilities or services must provide a public purpose. Typical improvements include road paving, drainage, and street lighting. 3 Packet Pg. 480 Chapter 197.3632 of the Florida Statutes provides for the levy, collection and enforcement of non-ad valorem assessments through the uniform method. Non-ad valorem assessments are not based on millage but on the cost to provide the improvement(s) and the corresponding benefit to the assessed property. They are collected through the tax bill method and can become a lien against a homestead. Reference the timeline to impose the uniform method of non-ad valorem assessments as established in Florida Statute 197.3632 on the following page. 4 Packet Pg. 481  MSBU CALENDAR YEAR SCHEDULE Before January 1 4 consecutive week public notice notification that the local government has intent to use the uniform method of collection for non-ad valorem assessment By January 1 Adopt a resolution at a public hearing (by March 1 if local government, property appraiser, and tax collector agree) By January 10 Local government mails a copy of the resolution to property appraiser, tax collector, and the Department of Revenue (by March 10 if the local government, property appraiser, and tax collector agree) By June 1 Property Appraiser provides local government with legal descriptions, names and addresses of the property owners within boundary of MSBU Between January 1 to September 15 20 Days Prior to the public hearing to adopt a non ad-valorem roll local government shall notice the hearing by first class mail and by newspaper. The notice by mail shall be sent to each property owner that shall be subject to the assessment Between January 1 and September 15 Local government adopts a non ad-valorem roll at public hearing if: 1) Non ad-valorem assessment is levied for the first time 2) assessment is increased beyond the maximum rate authorized 3) upon any boundary changes 4) upon change of purpose or use of revenue Between January 1 and September 15 Written Objections – Property owners have a right to appear at the hearing and to file written objections with the local government within 20 days of the notice Local government makes agreement with Property Appraiser and Tax Collector for providing reimbursement of administrative costs. (Postage, forms, supplies, etc.) 5 Packet Pg. 482 TYPES OF MSBU DISTRICTS & SERVICES Currently there are two (2) types of MSBU Districts in Okaloosa County. These are described below. Construction Districts  Construction/reconstruction to current County or alternate/interim standards - Area to be improved is platted/dedicated to the public. - Area to be improved is currently private; proof of ability to transfer the area to public ownership must be submitted as part of the application for establishment of a MSBU. Construction materials provided by MSBU. Engineering, construction labor and equipment provided by County staff contingent on approval by the Board of County Commissioners. Street Lighting Districts  Construction/reconstruction and maintenance. These services are provided by the appropriate power provider  Lights will be installed and subsequently maintained by appropriate power provider COSTS INVOLVED IN THE MSBU PROCESS Costs involved with every district:  $100 application fee. The application fee shall not be returned if the MSBU is not established  5% Administrative fee for collecting agency (or as addressed on a case-by-case basis for MSBU’s.)  1/2% Tax Collector commission  Reserves for contingencies/cash balance forward 6 Packet Pg. 483   Any costs incurred for advertisement and publications  Additional Construction District costs  Annual repayment of financing, if required  Materials and right-of-way costs (All labor and equipment will be provided by County staff, contingent on Board of County Commissioner approval.)  Interest on any funds borrowed through the construction period, if required Additional Street Lighting District costs:  Installation costs and facilities costs as provided by the power provider  Reserves which total 120% of annual estimated expenditures MSBU BOUNDARIES Municipal Services Benefits Units (special assessment districts) may be created for the following types of areas in Okaloosa County:  Platted, unplatted, or metes and bounds, where area to be improved is public 1. Initial Request for MSBU Procedures Interested homeowners should send a letter, or call, requesting, “Guidelines and Procedures” for the establishment of a special assessment district to: Okaloosa County Public Works 1759 South Ferdon Blvd. Crestview, Florida 32536 (850)689-5772 The request must identify:  the area affected (e.g., community, subdivision