Special Assessment Districts

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A Special Assessment District (SAD) is an arrangement between property owners and the City of Reno to help fund infrastructure improvements and benefit adjacent property owners.

SADs are created for the City's Neighborhood Street Rehabilitation projects as well as the Regional Transportation Commission's (RTC) arterial and collector street rehabilitation projects. Sometimes SADs are created by petition for commercial or industrial development opportunities or where participants desire to bring their infrastructure up to City standards so they can be accepted and maintained by the City.

The City of Reno is on a very active program to repair the city’s streets. The Pavement Management Program has inspectors who physically walk and expect the condition of the pavement throughout the city. Last year they evaluated more than 250 miles of streets. Based on these evaluations, streets that require a complete reconstruction are identified. In conjunction with the street reconstruction, Public Works Engineers go out and evaluate the other parts of the street infrastructure such as the curbs, gutters and sidewalks. If in fact maintenance is required on curbs and gutters, then these are added to the street rehabilitation program.

The City Council created repair criteria based on factors relating to the safety of pedestrians on the sidewalks and adjacent driveway approaches. Since the property owner is responsible for the maintenance of his/her sidewalk and adjacent driveway approach, the liability is the property owner’s. The requirement of the property owner to maintain the sidewalk is spelled out in the Nevada Revised Statutes 278.02313 and the Reno Municipal Code 12.20.0005. To address these repairs, the property owner can hire a licensed and bonded contractor to perform this immediately. Where the City has a Special Assessment District established for a street rehabilitation project, the repair can be added to a special assessment district to help defray the cost of the repairs to the property owner over a longer period of time, usually ten (10) years.

If the City Council desires to proceed with the assessment district, they direct the City Engineer to create plans and an estimate of costs to be charged to the various property owners within the project areas. Public Works Engineers then start creating the plans a drawing to do the work. They also prepare an estimate of the work to be done and present this to the Assessment District Coordinator. The Assessment District Coordinator then places estimated item costs to the work to be done and creates an estimated assessment roll. The estimated item costs are usually high enough to include design, inspection and processing fees that will be associated with the project.

The next step requires the City Council to adopt a Provisional Order Resolution indicating a determination by the City Council to go forward with the creation of the Special Assessment District and to set the date of the public hearing. The estimated assessments and plans are filed with the City Clerk the day before the Council meeting adopting the Provisional Order Resolution. After these actions by the City Council, the Assessment District Coordinator prepares the “Notice of Public Hearing” and an informational letter informing the property owner of the estimated assessment. In addition, an invitation to a “Public Meeting” with Public Works staff to discuss the assessment district and the street rehabilitation project is included. These letters are then mailed no less than twenty (20) days prior to the Public Hearing.

The Public Hearing Notice provides a detailed explanation of how the assessment district will work. It also provides information on how to protest or object to the creation of the district or the amount of your assessment. If you are financially concerned about not being able to make payments, there is information on how to apply for an Exemption from Paying Assessment.

On the date of the Public Hearing, the Mayor opens the Public Hearing and verifies that all of the notices by publication, mailing and posting have been performed. A brief presentation is then made by the City Engineer describing the project. Then, the Mayor asks for anybody who submitted a protest or objection letter to speak and then anybody else desiring to speak for or against the project. The City Engineer is then asked to address the protests and objections. The Council then deliberates the information presented. Once the Council is satisfied the Mayor closes the Public Hearing. The Council deliberates some more and then votes on the resolution addressing all protests and objections; resolution directing the recordation of maximum special benefits (the estimated amount of assessment); and the ordinance creating the district. Two weeks later, the ordinance is adopted and the district is formed.

At this point, Public Works staff prepares plans and specifications and advertise for bids for the project. Usually in April or early May, work begins and takes about two to three months, depending on the size of the project. The Special Assessment District work is done in conjunction with the street rehabilitation project. Once the work is completed, as-built plans are completed and amounts and quantities are determined. The information for the assessment work is submitted to the Assessment District Coordinator and the process for closing the district begins.

Once the work has been completed and final numbers have been determined, the City Council directs the City Engineer to prepare a final assessment roll. A preliminary final assessment roll is completed by the Assessment District Coordinator. This includes calculating the Design, Inspection and Processing Fees associated with the assessment district. The final assessment cannot exceed the Maximum Special Benefit amount adopted by the City Council when the district was created. A resolution “Fixing the Time” then goes before Council which establishes the Public Hearing date to close the district. Once again, the information about the district, how to protest and file an Exemption from Assessment is included in the Public Hearing Notice.

The Assessment District Coordinator now puts the final assessment letter together and mails the letter and the Notice of Public Hearing by certified mail to the property owners. The Public Hearing procedure is exactly the same as when the district was created. The ordinance this time levies the assessment upon the property.

Assessment Management Group in Las Vegas handles all of the billings for the City of Reno. Within a few days following the closing of the district, the property owners will receive a bill for the entire amount of the assessment. This is the beginning of the thirty (30) day cash-payment period. The property owner can pay all, part, or none of this bill. If the property owner pays entire amount billed, they will have no future obligation. If they pay a portion of the bill, the interest on the principal will reflect this and the payments will be smaller. If the property owner pays nothing, the entire amount will go into the payment process. On most assessment districts for sidewalk repairs the time of the payments is calculated over ten (10) years with twenty (20) semi-annual payments. These payments are billed approximately forty-five (45) days before they are due. Payments are due on September 1st and March 1st.

Special Assessment Districts FAQs

Expand/Contract Questions and Answers

Q:What is a Special Assessment District (SAD)?
A: A Special Assessment District, or SAD, is a process that enables the City of Reno to complete certain infrastructure improvements and assess the cost to benefiting adjacent property owners. Under current City policies the cost of sidewalk and driveway approach repairs are the responsibility of the property owner. The authority to form a Special Assessment District is found in Section 271 of the Nevada Revised Statutes and the City of Reno has been utilizing SAD's for over fifty years.

The current SAD is associated with a City of Reno Neighborhood Street Rehabilitation Project or the Regional Transportation Commission's (RTC) Street Rehabilitation projects. Sidewalk replacement will be completed during the street projects for the lowest construction price possible. Forming an SAD is the most efficient way for the City and the property owners to address this matter.
Q:Why is the estimate for repair of the sidewalk and driveway approach so high?
A: This amount is inflated to reflect a maximum benefit, which is the maximum amount a property owner can be charged once the assessment district is created by the City Council. The actual amount charged is dependent upon the bids received for the project and final design, inspection and processing fees. Typically, the final assessment amount is less than the initial assessment amount.
Q:Will a lien be placed on my property?
A: Yes, unless you choose to pay the full assessment within the 'cash payment period.' No action is taken on the lien unless you fail to pay the semi-annual payments when due. The lien will be removed when the assessment is paid in full.
Q:Do I have to participate in the SAD? Is there a public process the SAD has to go through prior to it being formed and adopted?
A: Over 50% of the participants (by contract value) in the SAD must protest participation in the SAD. In this instance, the City is considered a participant in the district because they are responsible for improving the street, the curbs and the gutters. Therefore, most districts can be formed based on only the City's involvement. The City Council is the legislative body that formally creates any Special Assessment District.

State law requires participants in a proposed SAD be given the opportunity to protest the formation of the SAD and/or their particular proposed assessment at a public hearing prior to the SAD being created. All property owners to be assessed as part of the proposed SAD are notified by mail of the date, time and place the public hearing will be conducted. Participants may protest either in person at the public hearing or by writing a letter of protest to the City Clerk prior to the public hearing.

Those wishing to Protest the District must provide a written protest to the City Clerk no later than three days prior to the Public Hearing date. The City Council will hear all protests at the Hearing, but only those submitted the City Clerk 3 days prior to the Hearing will have legal basis for protest.
Q:What criteria are used to determine if I have a deficient sidewalk or driveway approach? How was the criteria established?
A: The sidewalk and driveway approach along the frontage of your property was evaluated against criteria related to deterioration and tripping hazards. The criteria were originally established by a committee to ensure uniformity in the evaluation of the various infrastructure items. The criteria has been reviewed and modified over time to address the concerns of property owners and the City Council. The criteria have been formally adopted by the City Council.
Q:What about damage to the sidewalk from trees?
A: Trees growing within the City right of way are referred to as 'City Trees'. The City Council has elected not to assess property owners for the replacement of sidewalks that have been damaged solely by City Trees, typically growing within the parkway between the sidewalk and curb. However, repairs to sidewalks due to property owner trees or damaged sidewalk adjacent to City Trees that are not caused by the tree are assessed to the adjacent property owner.
Q:Will I be able to perform the required work myself?
A: You have the option of having the required work performed by another contractor prior to the City's contractor performing the work. If you opt to do the work yourself, you will be required to use a City approved licensed and bonded contractor in accordance with the provisions contained in the Reno Municipal Codes. All work will be done in accordance with the approved plans for the project. If you opt to do the work yourself, you will not be entitled to participate in the SAD or finance the cost of the work through the City.
Q:Do I have to pay the assessment as soon as the work is completed? Is there a financing plan available if we can't pay the entire amount at one time?
A: Once the work is completed a final assessment will be prepared. Typically, the final assessments won't be ready to mail to the property owners until 4-6 months after the work is completed. When the final assessments are adopted by the City Council, and the Ordinance Levying the Assessment becomes law, usually sixteen (16) days after the Public Hearing, you will have a minimum of thirty (30) days to pay all or a portion of your assessment. Any assessment amount remaining after the '30 day cash payment period' will be shifted to the financing plan available through the City.

The financing plans available through the City are normally a ten year payback period. You will be billed on a semi-annual basis with payments of principal and interest due on September 1 and March 1 of each year. The interest rate associated with this plan is set at the time the bonds necessary to cover the project costs are sold. The interest rate is subject to a number of market factors that cannot be evaluated as part of this document. However, since the bonds are tax exempt, the rate is typically lower than what most financial institutions charge on regular loans. The formula used to calculate payments utilize simple interest as opposed to compound interest.
Q:Can I pay the assessment prior to the work taking place?
A: No. Until the work has been completed, the property owner's final assessment costs cannot be determined. Typically, the final assessment cost is considerably lower than the initial estimate.
Q:Can I pay the assessment off early even if I choose to use the City's financing plan?
A: Yes. You may pay off the assessment at anytime after the final assessment roll has been filed with the County Treasurer and sent to our Assessment District Consultant, Assessment Management Group (AMG) for processing. However, once the bonds have been sold, there will be a pre-payment penalty. The AMG web-page at www.amgnv.com can provide information about future payments and pay off amounts.
Q:Will I be charged for work being done to the street?
A: No. Street Rehabilitation Program funds are designated by the City Council and are designed to fund the repair of the street, the curbs and the gutters. If any repairs are necessary to sidewalks and if it the damage meets the criteria for replacement, it will be addressed to the affected property owner. These assessments are done through the SAD process.
Q:What happens if I own a corner lot? Will I receive a full assessment on both street frontages?
A: You will be assessed for the improvements on both street frontages, whether they are done simultaneously or years apart. However, if you own a single family dwelling and it is zoned as such, you will receive a 50% reduction in the assessment on the non-address street frontage. Multi-family units, commercial or industrial uses will pay the full assessment on both street frontages.
Q:How are the streets picked for repair?
A: The streets are selected based in the Pavement Condition Index (PCI) and the area of the City targeted for repair in any particular year. Streets with a PCI of 55 or less are considered candidates for rehabilitation, which can range from a minor overlay to reconstruction. The City's priorities are the streets between a PCI of 41-55, which is the overly category. Streets in this range can be improved at approximately half the cost of a full reconstruction. Therefore, it is important to catch the 'overlay' streets before they become 'reconstruct' streets. Although overlays are preferred, not all streets can be rehabilitated this way and a number of reconstruct streets are selected for improvement each year.

Beginning in 1998, streets with condition rating between 56 and 70 have been and will be candidates to receive a preventive maintenance, a combination of patching, crack sealing and slurry seal surface treatments. This will extend the service life of the roadway. There will also be no concrete work and therefore no assessments with these surface treatments.

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Special Assessment Districts FAQs

Q:What is a Special Assessment District (SAD)?

Q:Why is the estimate for repair of the sidewalk and driveway approach so high?

Q:Will a lien be placed on my property?

Q:Do I have to participate in the SAD? Is there a public process the SAD has to go through prior to it being formed and adopted?

Q:What criteria are used to determine if I have a deficient sidewalk or driveway approach? How was the criteria established?

Q:What about damage to the sidewalk from trees?

Q:Will I be able to perform the required work myself?

Q:Do I have to pay the assessment as soon as the work is completed? Is there a financing plan available if we can't pay the entire amount at one time?

Q:Can I pay the assessment prior to the work taking place?

Q:Can I pay the assessment off early even if I choose to use the City's financing plan?

Q:Will I be charged for work being done to the street?

Q:What happens if I own a corner lot? Will I receive a full assessment on both street frontages?

Q:How are the streets picked for repair?