Tax Bill Name:
CITY OF LAKE ELSINORE AD 89-1 |
Year Began:
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Fund Name:
Assessment District No. 89-1 |
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| Documents on File: 2 |
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| TaxType:
1915 Bond Act Assessment District
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| Summary:
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| The levy was established pursuant to the Improvement Bond Act of 1915 (Streets & Highways Code Section 8500 et seq.).
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| Facilities:
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The levy can be used to finance the acquisition and /or construction of curbs, gutters, sidewalks, roads, traffic signalization, sewer and water facilities, drainage systems, landscaping and local utility improvements.
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| Services:
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The levy can be used to finance the maintenance and operation of the facilities that may be financed.
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Calculation:
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Generally, the special assessment for each parcel is determined by the assessment engineer during formation of the district. The formula must be based on special benefit conferred upon the assessed parcels from the improvements financed by the district. For example, assessments may be levied on a parcel based on the size or the number of units, a class of improvement, the use of the property or a combination thereof and zones of benefit may be used. Once created, a district is authorized to issue a set amount of municipal bonds with the property in the district providing security for the bonds as a recorded lien against the parcels. Each year, the total amount of the special assessment represents the aggregate principal amount of bonds maturing in the following year and all interest due on the bonds in such year. The principal and interest together are known as debt service. The total assessment for the district is divided proportionately between each parcel within the district based on the amount of special benefit each parcel receives from the improvements financed by the district. In most cases, property owners have the option to prepay the full amount of the special assessment.
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Increases:
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Generally, the amount of the special assessment is relatively level throughout the life of the district. Each parcel pays its portion of the annual debt service until the last bond matures and the debt service due each year is usually set up to maintain steady assessment amounts from year to year. However, in some cases a district does not issue the total amount of bonds that it is authorized to issue. For example, when the district is created, they may only issue half of the authorization. If at a later time the district issues the remaining half of the authorization, the special assessment will increase proportionately for each parcel. On the other hand, the number of parcels in the district may increase through annexation or otherwise, in which case the annual debt service on the bonds is spread across more parcels thereby lowering the special assessment amount for each of the original parcels.
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| How Long:
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Nearly all municipal bonds are long-term debt issues. The levy could be on the property for over 25 years.
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All information from 2001. |
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