Property and business improvement areas: benefit assessments.

The California Constitution generally requires that assessments, fees, and charges be submitted to property owners for approval or rejection after the provision of written notice and the holding of a public hearing. The Property and Business Improvement District Law of 1994 authorizes cities to form property and business improvement districts that may levy assessments within a district for the purpose of making improvements and promoting activities of benefit to the properties and businesses within the district, and defines various terms for purposes of the law. The law requires a management district plan to include, among other things, the name of the proposed district, a description of the boundaries of the district, and the total annual amount proposed to be expended for improvements, maintenance and operations, and debt service in each year of operation of the district. This bill would require a management district plan to additionally include, for districts that are property-based, the proportionate special benefit derived by each identified parcel, to be determined as prescribed, the total amount of all special benefits to be conferred on the properties located within the property-based district, the total amount of any general benefit, and a detailed engineer's report, as specified. This bill would define the term "special benefit" for purposes of that law to mean a particular and distinct benefit over and above general benefits, as defined, conferred on real property located in a district or to the public at large, and would specify that special benefit includes incidental or collateral effects that arise even if those effects benefit property or persons not assessed. The law additionally requires the city council to adopt a resolution of formation containing, among other things, a statement that the improvements and activities to be provided in the district will be funded by the levy of the assessments and a finding that the property or businesses within the area of the district will be benefited by the improvements and activities funded by the assessments proposed to be levied. This bill would require a finding that the property within the district will receive a special benefit and the total amount of all special benefits to be conferred on the properties within the property-based district. The bill would make various conforming changes to specify that the provisions described above apply to maintenance as well as improvements and activities.