Special Assessment FAQs

Go to page 33 of the Belle Isle Dredging Info for the FAQ section.

Q1. WHEN WILL THE BELLE ISLE 2011 STREETS SPECIAL ASSESSMENT APPEAR ON MY TAX BILL?
A1. The Belle Isle 2011 Streets Special Assessment will be included on your 2013 tax bill (mailed in December, 2012). In order for a special assessment to be included on your 2012 tax bill (mailed in December 2011), the City must send an invoice to residents by September 30, 2011. In order for this happen, the project must be completed and the City must have a final invoice from the contractor before September 30, 2011. Because this is not scheduled to happen on this timeline, the street special assessment will not be included on your 2012 tax bill.

Q2. ARE SPECIAL ASSESSMENTS TAX DEDUCTIBLE?
A2. Per the Internal Revenue Service, special assessments are not tax deductible.

Q3. WHEN WILL THE DREDGING SPECIAL ASSESSMENT APPEAR ON MY TAX BILL?
A3: If all of the phases of the project are completed by September 30, 2012 and the City receives the final bill from the contractor by September 30, 2012, then the dredging assessment will be included on your 2013 tax bill (mailed in December of 2012). If either of the two is not completed by September 30, then the special assessment will be included on your 2014 tax bill (mailed in December of 2013). If the dredging project is started in 2011, the special assessment will most likely appear on your 2013 tax bill (mailed in December 2012).

Q4. WHAT ARE MY OPTIONS TO PAY TO SPECIAL ASSESSMENTS?
A4: There are three options. Example assumes using an 8-year payback period:
Option 1: You may elect to pay the total amount of your assessment on or before October 31. By paying the full amount, you will avoid paying interest on the special assessment.
Option 2: You may elect to pay a portion of the total special assessment on or before October 31 in order to reduce the amount of the special assessment installment placed on the tax roll (tax bills that are sent out in December). The remaining balance will be amortized over 8 years.
Option 3: If you elect not to pay any amount of the special assessment by October 31, one-eighth (1/8) of the assessment total will be placed on your tax bill, plus two (2) months accumulated interest. The
remaining installments will be placed on future tax rolls at an interest rate of ???%. You are allowed
to make a partial or full payment at any time during the course of the eight (8) year repayment
period. Again, interest will only accrue beginning November 1.

Q5. HOW IS THE INTEREST RATE DETERMINED?
A5: The City charges residents an interest rate that is 1 percent more than the interest rate the City received when it borrowed the money. The City’s financial advisor estimates an interest rate of 2.5-3.0%.