Okaloosa County BOCC — May 6, 2014 — reading text

valorem assessments. The Tax Collector is responsible for the sale of tax certificates and issuance of tax deeds on properties that fail to pay their ad valorem taxes 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 where required, the administering of liens on unpaid non-ad valorem assessments. Policy Highlights County municipal service benefit units MSBU’s establish, monitor, maintain and manually adjust non-ad valorem assessments which may be collected by the Tax Collector on the ad valorem tax bill, through their inclusion on the billing of either municipal or Okaloosa County Water and Sewer utility billing or such other methods as approved by the Board of County Commissioners.. 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 section 125.01(1)(q), Florida Statutes . 2 Packet Pg. 224 • 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. • 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 Unit. • 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 Unit. • Designation of a liaison by each Unit 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 Unit 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. 3 Packet Pg. 225 General Guidelines for Establishing New MSBU s STATUTORY AUTHORITY Section 125.01(1)(q), Florida Statutes authorizes the Board of County Commissioners to provide for the establishment, merging, or abolishment of municipal service 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 Units to be created for the purpose of providing and maintaining essential facilities or services within an area and to fund these facilities and services through non-ad valorem assessments where they specifically benefit the property in that area. The facilities or services must provide a public purpose. Typical improvements include but are not limited to, road paving, drainage, street lighting and sidewalk installation. Section 197.3632, 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) or services and the corresponding benefit to the assessed property. They are collected through the tax bill method and can become a lien against the property, including homestead property. Reference the timeline to impose the non-ad valorem assessments through the use of the uniform method as established in Section 197.3632, Florida Statute on the following page. 4 Packet Pg. 226  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 by U.S Postal first-class mail 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 U.S. Postal 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. 227 TYPES OF MSBU SERVICES & IMPROVEMENTS Currently there are two (2) types of MSBU Units in Okaloosa County. These are described below. Construction Units • Construction/reconstruction to current County or alternate/interim standards - Area to be improved is platted/dedicated to the public or conveyed through an easement - 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 Units • 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 Unit: • $100 application fee. The application fee shall not be returned if the MSBU is not established • ½ % Tax Collector commission or 5% Administrative fee for collecting agency (or as addressed on a case-by-case basis for MSBU’s.) • Reserves for contingencies/cash balance forward 6 Packet Pg. 228  • Any costs incurred for advertisement and publications • Additional Construction Unit 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 Unit costs: • Installation costs and facilities costs as provided by the power provider • Reserves which total 120% of annual estimated expenditures MSBU BOUNDARIES Municipal Service Benefit Units (special assessment Units) 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 Unit 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 or street) • the type of improvement involved (e.g., paving and drainage or street lighting) 7 Packet Pg. 229  • the type of