CHAPTER NINE SPECIAL ASSESSMENTS 9.0 PURPOSE The purpose of the Code is to establish the manner in which Municipal Service Taxing Units ( MSTUs ), Municipal Service Benefit Units ( MSBUs ) and Dependent Special Districts are created, amended and administered. 9.1 WAIVER OF REQUIREMENTS The Osceola County Board of County Commissioners ( Board ) may, when deemed to be in the best interest of Osceola County ( County ) and not inconsistent with law, waive any or all requirements or provisions set forth in this Code and proceed thereafter to take whatever action is deemed to be in the best interest of the County. 9.2 CHANGES IN LAWS AND REGULATIONS In the event an applicable law or regulation is modified or eliminated, or a new law or regulation is adopted, the revised law or regulation shall, to the extent inconsistent with this Code, automatically supersede this Code. 9.3 AUTHORITY 9.3-1 BOARD OF COUNTY COMMISSIONERS Chapter 125, Florida Statutes grants the Board the ability to establish various funding mechanisms within Osceola County that provide for specific services. Specifically, the County has the authority to establish MSTUs and MSBUs. In addition, Chapter 189, Florida Statutes provides the Board the authority to establish Dependent Special Districts. The MSTU/MSBUs and Dependent Special Districts may be established in order to meet the needs of the County and/or specific neighborhoods. When a new service unit is created, the preference is to establish a Municipal Service Benefit Unit whenever possible. When a Municipal Service Benefit Unit is created, unless directed otherwise by the Board, Assessments will be collected pursuant to the Uniform Assessment Collection Act, Sections 197.3632 and 197.3635, Florida Statutes, or any successor statutes. 9.3-2 COUNTY MANAGER The County Manager or Designee shall have the authority to adopt operational procedures, consistent with this Code and Florida Statutes governing Special Assessments. 9.4 OSCEOLA COUNTY MSTU/MSBU AND DEPENDENT SPECIAL DISTRICTS 9.4-1 NEW MSTU/MSBU or DEPENDENT SPECIAL DISTRICTS 1 P age
The creation of an MSTU/BUs or Dependent Special Districts may be initiated by a property owner(s) request, voter referendum or direct action by the Board. Generally, County MSTU/BUs or Dependent Special Districts are established via direct action by the Board. In accordance with the Administrative Code and all relevant State Statutes, the County Manager shall establish Procedures to establish the necessary process for creation. 9.4-2 BOCC FEES The County utilizes Fund Accounting to organize and account for all receipts and expenditures. As such, MSTU/MSBUs and Dependent Special Districts are considered Special Revenues and must be accounted for separately and in accordance with the State of Florida s Uniform Chart of Accounts. Services for the implementation and management of County MSTU/BUs and Dependent Special Districts may require services from staff in other Funds. When this occurs, costs for services will be accounted for and recovered via direct transfers or the cost allocation plan. 9.5 NEIGHBORHOOD SERVING MSTU/BUs 9.5-1 NEW MSTU/MSBU The creation of an MSTU/BU may be initiated by a property owner(s) request, voter referendum or direct action by the Board. Generally neighborhood serving MSTU/MSBUs are initiated by property owner(s) requests. While the preference is to establish an MSBU when a new service unit is created, the decision depends on a number of factors including the type of service and geographical area to be served. MSTU/MSBU will be created in accordance with all relevant State Statutes, as amended. 9.5-2 EXISTING MSTU/MSBU It may be necessary from time to time to amend an existing MSTU/MSBUs. Amendments could be a result of activating or inactivating an existing MSTU/MSBU or a revision to the level of service provided. Amendments to the existing MSTU/MSBUs may be direct action by the Board or initiated by property owner(s). 9.5-3 PETITION A. New MSTU/MSBUs - Although the initial request may be generated by a property owner or group of owners, including Home Owners Associations (HOAs), the cost of the requested service is assessed to all property owners of the subdivision. Consequently, the County requires a mechanism to ensure that there is a broad interest in the request prior to proceeding. The Board has determined that a petition may serve as an indicator of the amount of community interest for the establishment or amendment of citizen-initiated requests for an MSTU/MSBU. 2 P age
Current property owners must sign the petition to count towards a 66% (2/3) approval requirement. When there are multiple owners for a property, only one owner may sign. The County will facilitate the mailing of the petition at the cost of the applicant. If at least 66% approval is obtained, the County will proceed. If 66% is not obtained, repetitioning is permitted once per fiscal year. B. Existing MSTU/MSBU - If the request is to activate or inactivate an MSTU/BU, the same petition process must be followed as identified above. Additionally, the same process must be followed if the request substantially changes the current services being provided. Substantial changes include the addition to or deletion of services as identified in the governing documents. If the request does not change the identified services and the subdivision has an active HOA, a petition is not required. In this instance, the HOA may submit the formal written request to the County along with minutes from an HOA meeting where support for the request was approved by the HOA Board. 9.5-4 ADMINISTRATION Neighborhood serving MSTU/MSBUs will be provided property management services through the appropriate County department. Property management services will include contracting for services, inspection, invoice payment, budgeting and community outreach. 9.5-5 BOCC FEES A. Direct Costs - The mailing costs for the petition and the first year s individual mailed notices for newly created MSBUs per Florida Statute 197.3632 are the financial responsibility of the applicant. These costs will be included in the Countywide Fee Resolution and are required to be pre-paid by applicant. If the requested changes to an existing MSTU/MSBU require re-noticing via individual mailed notices, the costs will be paid from the MSTU/BU s funds. For those MSTU/MSBUs which require thorough evaluation to determine the feasibility of a proposed program (i.e. road improvement) in-depth analysis may be required in order to develop accurate costs of the service. This analysis may include procuring professional services such as engineers and surveyors. The requestor will be financially responsible for these costs. B. Administrative Fee - In addition to Direct Costs, establishing, amending and/or managing a MSTU/MSBU uses County resources. The County will impose an Administrative Fee that shall defray costs incurred. The formula for the Administrative Fee will be established by Procedure and will vary based on what type of program is being proposed or provided and the associated County effort and expenses. These fees will be included in the Countywide Fee Resolution and will be evaluated annually. 3 P age
9.6 COMMON FACILITIES DISTRICTS ( CFDs )- DEPENDENT SPECIAL DISTRICTS Common Facilities Districts are Dependent Special Districts of Osceola County. As such, Osceola County is responsible to monitor the CFDs to ensure that they remain in compliance with relevant State Statutes and governing documents. The Board has provided the Common Facilities Districts the ability to utilize County staff for District Clerk services. 9.6-1 NEW CFDs The creation of a CFD may be initiated by a property owner(s) request or direct action by the Board. Generally CFDs are initiated by property owner(s) requests. CFDs will be created in accordance with all relevant State Statutes, as amended. 9.6-2 EXISTING CFDs It may be necessary from time to time to amend an existing CFD. Amendments could be a result of activating or inactivating an existing CFD or a revision to the level of service provided. Amendments to the existing CFD may be initiated by direct Board action or by the CFD Board of Supervisors. The governing body of a Common Facilities District is a Board of Supervisors composed of three (3) members. The Supervisors are elected by the qualified electors of their respective communities. As such, the Board of Supervisors, by motion during a properly advertised public meeting, may request the Board of County Commissioners consider an amendment to their governing documents. 9.6-3 PETITION A. New CFDs - Although the initial request may be generated by a property owner or group of owners, including Home Owners Associations (HOAs), the cost of the requested service is assessed to all property owners of the subdivision. Consequently, the County requires a mechanism to ensure that there is a broad interest in the request prior to proceeding. The Board has determined that a petition may serve as an indicator of the amount of community interest for the establishment or amendment of citizen-initiated requests for a CFD. Current property owners must sign the petition to count towards a 66% (2/3) approval requirement. When there are multiple owners for a property, only one owner may sign. The County will facilitate the mailing of the petition at the cost of the Subdivision. If at least 66% approval is obtained, the County will proceed. If 66% is not obtained, repetitioning is permitted once per fiscal year. 4 P age
9.6-4 BOCC FEES A. Direct Costs - The mailing costs for the petition are the financial responsibility of the applicant. These costs will be included in the Countywide Fee Resolution and are required to be pre-paid by applicant. If the requested changes to an existing CFD require re-noticing via individual mailed notices, the costs will be paid by the CFD. B. Administrative Fee - In addition to Direct Costs, establishing, amending, providing District Clerk services and/or monitoring the CFDs uses County resources. The County will impose an Administrative Fee that shall defray costs incurred. The formula for the Administrative Fee will be established by Procedure and will vary based on what type of program is being proposed or provided and the associated County effort and expenses. These fees will be included in the Countywide Fee Resolution and will be evaluated annually. 9.7 MERGING NON-AD VALOREM ASSESSMENT ROLL Osceola County s Non-Ad Valorem Assessment Roll must be merged with the Tax Roll per Florida Statute. If an executed Interlocal Agreement with the Osceola County Property Appraiser is in place, the County may be contracted to maintain the non-ad valorem module of the Property Appraiser Database. The County Manager may designate the responsible entity, currently the Special Assessment Office, to maintain the data and coordinate directly with outside agencies in order to merge the individual non-ad valorem assessment rolls. 9.7-1 BOCC FEES In accordance with an Interlocal Agreement with the Property Appraiser, the County will impose an Administrative Fee that shall defray costs incurred. The formula for the Administrative Fee will be established by Procedure and will vary based on what type of program is being proposed or provided and the associated County effort and expenses. These fees will be included in the Countywide Fee Resolution and will be evaluated annually. 5 P age
APPENDIX A DEFINITIONS Unless the context otherwise requires, the following terms shall have the meanings set forth below whenever they appear in Chapter 9 of the Administrative Code and/or correlating County Manager Procedures: Administrative Fee: A charge established to defray some of the costs incurred by the County in support of establishing or amending an MSTU/BU. Common Facilities District: Dependent Special District created by the Board of County Commissioners in order to maintain common facilities owned by each District. Dependent Special District: A unit of local special-purpose government with policy-making powers which operates within limited boundaries and is created by Ordinance. Homeowners Association (HOA): The homeowners association created pursuant to Chapter 617, Florida Statutes, having jurisdiction over the property located with the District. In-depth Analysis Fee: A charge established to fund professional services required from time to time to determine the feasibility of certain improvements and to prepare cost estimates. Municipal Service Benefit Unit (MSBU): A service unit which receives a specific benefit for which a special assessment is imposed to cover the cost of providing the service or improvement. MSBUs have been established by the Board of County Commissioners through an adopted ordinance or resolution that outlines the boundaries of the district and the services or improvements to be provided. Municipal Service Taxing Unit (MSTU): A service unit for which an ad valorem tax levy is imposed to cover the cost of providing a service or improvement, based upon taxable value. MSTUs have been established by the Board of County Commissioners through an adopted ordinance or resolution that outlines the boundaries of the district and the services or improvements to be provided. Petition: A formal document, prepared and distributed by Osceola County, used to determine the level of community support for the establishment or amendment of an MSTU/MSBU. Special Assessment: A special assessment (also known as a non ad- valorem assessment) is a charge to cover the cost of providing a service or improvement, based on the relative amount of benefit received. Special assessments are typically not related to ad valorem value. History 02/16/04, created Chapter 9, Res #04-009R;10/20/14, Res #14-101R, agenda item #12; 6 P age